The terms wide-area network (WAN) and software-defined wide area network (SD-WAN) are often confused, but they are not the same. Hybrid WAN refers to the strategy of routing traffic across multiple connection paths, while SD-WAN is a more advanced solution that simplifies hybrid WAN management by centralizing control, applying business policies, and ensuring secure and optimized traffic flow. Both have evolved to meet the growing demands of cloud computing environments.
In the past, most applications were hosted in private data centers, with traffic typically routed through Multiprotocol Label Switching (MPLS) networks. However, today’s landscape has shifted dramatically. The global Internet now handles the majority of traffic, and cloud services are expanding rapidly. In 2017, global public cloud revenue reached $260.2 billion, up from $219.6 billion the previous year. Platforms like Amazon Web Services (AWS), Microsoft Azure, and SaaS applications such as Microsoft Office 365, Salesforce, and Box have become essential parts of modern enterprise infrastructure.

With this shift, businesses need networks that are more resilient, flexible, and cost-effective. According to Gartner, traditional WAN architectures are no longer ideal when compared to the performance and cost benefits of public cloud solutions. MPLS-based backhauls can lead to performance issues and congestion, especially for cloud applications. As demand increases, so do the costs associated with managed services, prompting some companies to bypass security protocols and directly access the Internet—introducing significant security risks.
New challenges also arise from the rise of OTT applications, which increase network load, and encrypted traffic, which makes it difficult to prioritize business-critical data. Additionally, the Internet of Things (IoT) is generating massive amounts of data that is often processed at the edge, further complicating network management.
Hybrid WANs emerged as a response to these challenges. They allow organizations to combine different types of connections—such as Internet broadband and MPLS—to optimize traffic based on application needs. While Internet broadband offers flexibility and scalability, it lacks the security and reliability of MPLS. This makes it suitable for cloud traffic but less ideal for sensitive or high-quality applications.
According to Shamus McGillicuddy of the Enterprise Management Association, “The future of the WAN is actually a hybrid. Most companies will operate networks that use public and private connections, and application traffic will drive these connectivity options.â€
However, managing a hybrid WAN manually through command-line interfaces (CLIs) is time-consuming and error-prone. For example, a large retailer with 500 stores deploying a new video application would need to configure over 5,000 commands, taking weeks to implement. Even with automation, errors and complexity remain significant hurdles.
SD-WAN addresses these issues by offering a centralized management platform that allows administrators to define and enforce policies across the entire network. According to a Forrester survey, most IT professionals prefer centralized monitoring and remote configuration capabilities. SD-WAN abstracts device management, enabling IT teams to create and deploy policies across WAN, LAN, and cloud environments efficiently.
This approach reduces operational costs by up to 20%, improves application performance, and enhances security. SD-WAN solutions often include features like integrated WAN optimization, user and device monitoring, and built-in firewalls. These tools help reduce latency, improve connectivity, and ensure secure access to cloud platforms like AWS, Azure, and Google Cloud.
For instance, Australian payment provider Simple Pay uses SD-WAN to automate cloud connectivity and maintain secure, consistent connections globally. “Without traffic, no staff needed—it’s actually one of the easiest deployments I’ve ever worked on,†said Rob Gillan, CTO of Simple Pay.
As businesses continue to adopt cloud technologies, the need for modernized networks becomes increasingly clear. SD-WAN not only simplifies hybrid WAN management but also reduces costs and increases flexibility. Industry analysts predict the SD-WAN market will reach $8 billion by 2021, signaling its growing importance in the evolving digital landscape.
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