The terms "wide-area network" (WAN) and "software-defined wide area network" (SD-WAN) are often confused, but they are not the same. A hybrid WAN involves routing traffic across multiple connection paths, while SD-WAN is a more advanced approach that simplifies the management of these hybrid networks by centralizing control and applying business policies and security measures. Both have evolved to meet the dynamic demands of cloud computing, which has transformed how businesses operate and manage their data.
In the past, most applications were hosted in private data centers, relying on Multiprotocol Label Switching (MPLS) for secure and reliable connectivity. However, today, a growing majority of traffic flows over the global Internet. Cloud services like AWS, Microsoft Azure, and SaaS platforms such as Office 365, Salesforce, and Box have become critical components of enterprise infrastructure. The global public cloud market is projected to grow significantly, with revenue reaching $260.2 billion in 2017 alone.
As cloud adoption increases, traditional WAN architectures face challenges. Gartner notes that from a cost and performance standpoint, public cloud solutions are making legacy enterprise WANs less efficient. MPLS-based backhaul can lead to performance issues and congestion, especially with the rise of cloud-based applications. As a result, some companies are bypassing MPLS entirely, using direct Internet access through firewalls, which can improve speed but introduces security risks.
New applications like video streaming and encrypted services further complicate network management. These tools make it harder to prioritize business-critical traffic, and the growth of IoT devices adds to the complexity, generating massive amounts of data that need to be processed at the edge.
Hybrid WANs emerged as a solution, allowing organizations to use multiple connection types—like MPLS and broadband Internet—to balance cost, performance, and reliability. By intelligently selecting routes based on application needs, hybrid WANs can optimize traffic flow and avoid bottlenecks. However, managing them manually is time-consuming and error-prone.
This is where SD-WAN comes into play. Instead of configuring each device individually via command-line interfaces, SD-WAN offers a centralized platform that simplifies policy deployment and monitoring. For example, a large retailer with 500 stores would need to configure thousands of commands to deploy a new video application. With SD-WAN, this process becomes automated and streamlined, reducing both time and risk.
According to research, many IT administrators prefer centralized control for better visibility and efficiency. SD-WAN enables businesses to define and enforce policies across all network environments, including cloud, wireless, and wired LANs. This not only improves operational efficiency but also enhances security and reduces costs by up to 20%.
Moreover, SD-WAN helps optimize cloud connectivity by enabling direct and secure access to SaaS and cloud platforms. It supports features like integrated WAN optimization, which reduces latency and congestion, and real-time monitoring that helps quickly identify and resolve performance issues across different environments.
Security is another key benefit. Many SD-WAN solutions include built-in firewalls, user authentication, and network segmentation, helping protect against threats and reduce the attack surface. This makes it easier to manage complex traffic patterns without compromising safety.
Companies like Simple Pay have successfully adopted SD-WAN to streamline their cloud operations. They use it to automate connections to AWS, ensuring secure and consistent access across their global network. As one CTO noted, “Without traffic, no staff needed—it’s actually one of the easiest deployments I’ve ever worked on.â€
As the demand for flexible, scalable, and secure networks continues to grow, SD-WAN is becoming a must-have technology. Analysts predict the market will reach $8 billion by 2021, reflecting its increasing importance in modern IT infrastructure. Whether through hybrid WANs or SD-WAN, enterprises are redefining their network strategies to support the evolving needs of cloud computing and digital transformation.
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