MPLS was four times the cost of SD-WAN while delivering about 25 percent of SD-WAN bandwidth, say executives at Centrient Pharmaceuticals.
Centrient replaced an MPLS network with SD-WAN supplied by Cato Networks, linking headquarters in the Netherlands with nine manufacturing or office locations in China, India, Spain, Mexico and inside the Netherlands, as well as smaller offices in Egypt, Cairo, Moscow and the United States
The firm’s applications include Office 365, internet access, VoIP, SAP and other cloud-based applications using Azure.
To be sure, one issue was that the firm’s MPLS connections often ran at 6 Mbps, where the SD-WAN apps often run at 20 Mbps to 50 Mbps, when multiple local internet access connections are multiplexed.
In other cases, firms with global networks also saw an improvement in latency performance, ease of adding or dropping locations and also a reduction in cost.
The SD-WAN cost advantage, in terms of bandwidth, is stark. On the other hand, creating a new SD-WAN will increase operating costs, and requires new networking gear. Over five years, SD-WAN will, in many cases, be cheaper than an MPLS solution.