Product Summary
Secure SD-WAN
A hybrid wide-area network solution with built-in security for faster connectivity and better performance of cloud-enabled applications.
ARTICLE
SD-WAN vs MPLS: Which Is Right for Your Business?
Jeff Farley
About the author: Jeff is the head of product development and management at Acronym responsible for ensuring Acronym has the most up to date solutions to help businesses in their digital transformation.
As businesses grow and their networks stretch across offices, data centres, and remote teams, wide-area networking becomes a make-or-break factor in performance. For years, MPLS (Multiprotocol Label Switching) was the default choice: stable, predictable, and reliable. But with the rise of cloud applications, hybrid work, and ever-increasing bandwidth demands, SD-WAN (Software-Defined WAN) has emerged as a potential alternative.
While each connectivity model offers unique strengths depending on performance, cost, and cloud-readiness priorities, choosing between SD-WAN vs MPLS is a strategic decision. This article breaks down the strengths and limitations of each approach so IT leaders can make an informed choice.
Key Takeaways
- MPLS (Multiprotocol Label Switching): Offers predictable performance and guaranteed reliability for mission-critical applications.
- SD-WAN (Software-Defined WAN): Provides agility, cloud-readiness, and integrated security for distributed, cloud-first environments.
- Decision factors: Cost, performance, scalability, and security requirements should all influence whether you choose SD-WAN vs MPLS.
- How Acronym can help: We support SD-WAN solutions and can work with MPLS-based architectures where appropriate as part of custom connectivity designs.
Quick Overview: What Is MPLS? What Is SD-WAN?
When comparing SD-WAN vs MPLS, it helps to start with the basics.
What is MPLS?
MPLS (Multiprotocol Label Switching) is a private, carrier-managed network technology that directs network traffic along predetermined, high-performance routes. It delivers consistent reliability and low latency, making it well-suited for mission-critical applications.
What is SD-WAN?
SD-WAN (Software-Defined Wide Area Network) is a virtualized overlay that uses software to intelligently route traffic across multiple connection types, including broadband, LTE, and MPLS. It offers centralized control, real-time optimization, and integrated security capabilities – with additional advanced security features available depending on the platform – making it ideal for cloud and hybrid work environments. Explore Acronym’s SD-WAN services to see how it works in practice.
SD-WAN vs MPLS: Feature-by-Feature Comparison
The choice between SD-WAN and MPLS often comes down to how each handles performance, cost, scalability, and security. Here’s a side-by-side of SD-WAN and MPLS pros and cons and network performance comparison:
| Feature | MPLS | SD-WAN |
|---|---|---|
| Performance | Consistent, predictable performance with dedicated private paths. | Adaptive performance that automatically routes traffic over the best available link. |
| Costs | Higher fixed costs tied to private circuits and service-level guarantees. | Variable operational costs leveraging public internet connections and centralized management. |
| Cloud Readiness | Well-suited for private data centre connectivity. Requires additional configuration for cloud traffic. | Designed for cloud and SaaS applications with integrated traffic prioritization and optimization. |
| Scalability | Scales through additional circuits and provider coordination. Predictable, but slower to expand. | Scales quickly via software configuration across diverse links (broadband, LTE, MPLS). |
| Security | Traffic is isolated on private networks, providing inherent protection but limited visibility. | Built-in features like encryption, segmentation, and firewalls enhance visibility and control. |
| Visibility | Limited network visibility, typically monitored through carrier tools. | Centralized dashboards provide granular, real-time performance and security insights. |
| Deployment Speed | Provisioning new sites can take weeks to months due to carrier involvement. | Software-based rollout enables faster provisioning—often within days or weeks. |
It’s clear from this comparison that SD-WAN and MPLS each have distinct advantages, depending on how and where your business operates. The next step is understanding why an organization might choose one over the other, and how those decisions align with performance, cost, and connectivity priorities.
When (and Why) MPLS Still Makes Sense
While many organizations are exploring SD-WAN for its agility and cloud-readiness, MPLS remains a proven and trusted option in specific scenarios. It continues to excel where guaranteed performance, consistency, and control are non-negotiable:
- Mission-critical workloads: Real-time applications—like financial trading systems, healthcare imaging, or manufacturing controls—often rely on MPLS for its guaranteed latency and SLAs.
- Private, centralized networks: Organizations whose data flows mainly between fixed locations and private data centres can benefit from MPLS’s reliability and predictable routing.
- Legacy or compliance-driven systems: Some industries require dedicated, isolated connections to meet regulatory or operational standards that broadband links can’t easily provide.
MPLS does involve trade-offs, including higher provisioning costs and longer deployment times. But for businesses that value deterministic performance and security through isolation, it remains a relevant and strategic choice—especially as part of a broader connectivity mix that might also include SD-WAN.
When SD-WAN Makes Sense (And Why It’s Gaining Momentum)
As networks become more distributed and cloud-reliant, many organizations are exploring SD-WAN as a way to gain greater flexibility and visibility across locations. Rather than replacing MPLS outright, SD-WAN introduces a new level of agility, using software to intelligently manage multiple connection types and optimize performance based on real-time conditions.
Key reasons SD-WAN is gaining ground:
- Cloud-optimized performance: Dynamically prioritizes SaaS and cloud application traffic to maintain consistent user experiences across sites.
- Security capabilities built into the platform: Most SD-WAN solutions include core security features such as IPSec VPN and network segmentation, with optional advanced capabilities like next-generation firewalls typically available through additional licensing. Acronym’s Secure SD-WAN aligns with this model, offering these capabilities as part of a flexible, security-focused design.
- Cost savings: Reduces reliance on expensive private connectivity (e.g. MPLS) by leveraging cost-effective public internet links, while still maintaining performance through intelligent traffic steering.
- Deployment flexibility: Can be layered over existing MPLS connections or broadband links, giving organizations more control over how traffic is routed.
- Operational efficiency: Reduces manual network management and enables faster scaling, often at a lower total cost of ownership, especially when paired with Managed SD-WAN services that simplify deployment and ongoing support
For many Canadian businesses supporting hybrid work and cloud transformation, SD-WAN helps extend secure, reliable access to users everywhere. Still, MPLS continues to play a vital role where predictable, guaranteed performance is critical. Increasingly, organizations are finding that a combination of the two—SD-WAN for flexibility and MPLS for reliability—delivers the best of both worlds.
Cost Comparison: SD-WAN vs MPLS
Cost is often one of the biggest deciding factors when evaluating WAN architectures, but it’s also one of the most nuanced. MPLS and SD-WAN differ not only in their upfront and recurring expenses but also in how those costs align with performance, scalability, and management priorities.
MPLS:
- Involves higher fixed costs tied to private circuits, SLAs, and provider-managed infrastructure.
- Pricing typically depends on bandwidth, location, and service-level guarantees.
- For organizations where downtime carries a high financial or compliance cost, these predictable expenses can be justified.
SD-WAN:
- Uses a wide range of transport options – including broadband, public internet, cellular (LTE/5G), and emerging connectivity such as LEO satellite – to lower ongoing costs and reduce dependence on traditional carrier-managed infrastructure.
- Follows an operational expenditure (OpEx) model, making it easier to scale or adjust capacity as needs change.
- Savings can be significant for distributed networks, though results vary based on architecture, bandwidth demands and customer site locations.
Ultimately, the most cost-effective approach depends on business priorities. Companies prioritizing deterministic performance and guaranteed uptime may find MPLS worth the investment, while those focused on agility, scalability, and centralized management often see value in SD-WAN, or a hybrid model that leverages both.
Security Considerations: SD-WAN vs MPLS
Security is one of the most important factors when evaluating wide-area network architectures, and both MPLS and SD-WAN address it in different ways. MPLS provides a strong foundation for secure connectivity by keeping traffic isolated from the public internet. Data travels over private circuits managed by the carrier, reducing exposure to external threats. While this model offers dependable protection for sensitive workloads, it generally relies on external tools—such as firewalls or intrusion detection systems—to achieve more advanced threat prevention and visibility.
SD-WAN approaches security from a different angle. Instead of relying solely on private lines, it builds protection directly into the network through features like end-to-end encryption, traffic segmentation, and integrated firewalls. Because SD-WAN is software-defined, it also gives IT teams centralized visibility and control, making it easier to enforce policies, monitor traffic, and respond quickly to potential issues. Many modern SD-WAN platforms support zero-trust frameworks, which verify users and devices continuously—an approach that aligns with the growing shift to hybrid and remote work models.
In practice, many organizations combine both models to strike a balance between isolation and visibility. MPLS provides predictable performance and private transport, while SD-WAN layers on agility, centralized control, and advanced security capabilities. The best fit depends on an organization’s risk profile, compliance requirements, and overall network strategy.
Making the Right Choice: Key Questions to Ask
If you’re weighing SD-WAN vs MPLS, asking the right questions can help clarify your decision:
- How critical is guaranteed performance?
If your business runs applications that can’t tolerate latency or downtime—such as voice, trading, or real-time control systems—MPLS still provides the most consistent performance and predictable routing. - How reliant are you on cloud and SaaS applications?
The more your organization depends on cloud platforms like Microsoft 365, Salesforce, or Teams, the more you’ll benefit from SD-WAN’s ability to intelligently route and prioritize traffic to and from the cloud. - Do you need greater visibility and centralized control?
SD-WAN provides analytics and monitoring tools that make it easier to see and manage network activity across all sites, while MPLS tends to rely on provider-managed visibility. - What’s the right balance between cost and stability?
MPLS involves higher fixed costs in exchange for predictable performance. SD-WAN offers a more flexible cost structure that scales with your business, but may depend on internet connection quality. - How important is built-in security and scalability?
SD-WAN solutions often include encryption, segmentation, and zero-trust capabilities out of the box, while MPLS delivers security through isolation and carrier-grade SLAs.
There’s no universal right answer here. Many organizations use both, pairing MPLS for their most critical applications with SD-WAN for everyday connectivity and cloud optimization. The goal is to design a network that delivers the reliability, flexibility, and security your business needs to grow confidently.
The Future of Business Connectivity
As networks evolve to support hybrid work and cloud-based operations, both MPLS and SD-WAN have a role to play. MPLS continues to deliver unmatched reliability for mission-critical workloads, while SD-WAN offers the agility, visibility, and scalability modern organizations need.
For many businesses, the ideal approach blends the two—leveraging MPLS for guaranteed performance and SD-WAN for flexibility and centralized control.
Acronym helps Canadian organizations navigate this choice with confidence, designing secure, high-performance networks that align with each company’s goals. Whether you’re enhancing your existing infrastructure or exploring new possibilities, we can help you find the right path forward. Contact us today to get started >
FAQ's
Q: What is the difference between MPLS and SD-WAN?
A: MPLS (Multiprotocol Label Switching) is a private, carrier-managed network that delivers predictable performance and guaranteed service levels. SD-WAN (Software-Defined WAN) is a virtualized overlay that uses software to intelligently route traffic across multiple connection types, offering greater flexibility and centralized management.
Q: Is SD-WAN more secure than MPLS?
A: Both technologies can provide strong security, but in different ways. MPLS isolates traffic on private circuits, while SD-WAN incorporates built-in tools such as encryption, segmentation, and firewalls. Many organizations use a combination of both—leveraging MPLS for isolation and SD-WAN for enhanced visibility and zero-trust enforcement.
Q: Can SD-WAN replace MPLS entirely?
A: It depends on your organization’s needs. Some businesses transition fully to SD-WAN to simplify management and reduce costs, while others maintain a hybrid model that uses MPLS for critical applications and SD-WAN for cloud connectivity and branch expansion.
Q: Which is better for cloud applications: SD-WAN or MPLS?
A: SD-WAN is designed with cloud optimization in mind, dynamically routing and prioritizing SaaS and cloud traffic. MPLS can also support cloud workloads, but often requires additional configuration to deliver comparable responsiveness. The right choice depends on your network’s architecture and performance priorities.
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About Acronym
Acronym Solutions Inc. is a full-service information and communications technology (ICT) company that provides a range of scalable and secure Network, Voice & Collaboration, Security, Cloud and Managed IT Solutions. We support Canadian businesses, large enterprises, service providers, healthcare providers, public-sector organizations and utilities. We leverage our extensive network expertise to design and build customized, fully scalable solutions to help our customers grow their businesses and realize their full potential. With more than 20 years’ experience managing the communications system that enables Ontario’s electrical grid, Acronym is uniquely positioned to understand the mission-critical needs of any business to deliver the innovative and reliable services that respond to the changing demands of businesses, and support rapid growth and digital transformation initiatives.