Over the past couple of months, discussions around What SD-WAN is and how it could potentially revolutionize Networking, have taken over many conversations in the IT world. As we talk about in our upcoming eBook “SD-WAN 101: What is SD-WAN?,” the history around networking is something that has been long in the need to be drastically changed.
The fact of the matter is traditional WANs are a solution that was designed more than 20 years ago when very little, if any, company network traffic hit the public Internet. Now, the opposite is true. SD-WAN is exactly the game-changer that the networking industry needed. But, for all of it’s benefits, one seems to be getting much more exposure than the rest: Cost Savings. In this blog post, we are going to look at some numbers, and then talk about the top ways that SD-WAN allows for such a cheaper solution.
A Look at the Numbers
Let’s take a look at an example. When you take into account the amount of money spent on Routers, their maintenance and support, and the staffing that would be required to support all of this, A 250-branch WAN over three years is estimated to cost $1,285,000 in a traditional WAN architecture. Those exact same components in an SD-WAN development are estimated to cost $452,500 over the same three year span.
According to Gartner, estimations show that an SD-WAN can be up to two and a half times less expensive than traditional WAN Architecture.
4 Ways SD-WAN Provides a Cheaper Solution
Single Pool of Resources Provides More Options
DS-1/T-1 MPLS circuits, from telcos like AT&T, Verizon, and BT, are the dominant enterprise private WAN architecture in the US, and they come with no small price tag. Branch and mid-sized office copper MPLS connectivity for US locations typically costs will come with a list rate of anywhere from $750 to $1000 per month – that is $585 per Mbps, compared to $2-$10 of the Broadband Internet lines. In other words, MPLS is 100 times more expensive per Mega bit delivered compared to other business class connectivity options.
Ensures All Resources are Used
Another common feature of traditional networks is having a full backup WAN that only exists in case of failover. SD-WAN solutions allow for this bandwidth to be applied to the overall system, ensuring that you are not paying for more bandwidth than is actually needed. When outages happen, failovers occur in less than a second so reliability is not sacrificed.
Allows For Carrier Independent Network Provisioning
This benefit kind-of builds off what we were talking about in the last paragraph. With a normal WAN or MPLS solution, you are at the mercy of the telecom providers who already have a presence in your geographic area. If a given carrier doesn’t have a strong presence in whatever area you’re working in, they will often work with another telecom provider to complete your quote. This leads to margins being added on top of margins, and your cost sky-rocketing. With an SD-WAN solution, any combination of bandwidth can be combined in the system, regardless of type or carrier. This allows IT managers setting up a solution for multiple branch offices to work off of what would be best for the network they are designing, and not have to operate at the mercy of the telecom providers.
Drastic Reduction in Maintenance
Another huge feature of SD-WAN architectures is that all routers and network components can be accessed and set up through one interface. Setting up of new routers or systems does not require programming or setting policies. Policies are already built into the overall SD-WAN solution, and these policies are simply applied to the new system.
Interested in learning more about how much money your company could save by switching to SD-WAN? Contact our experts today!