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What Is SD-WAN? Why You Should Use It

SD-WAN is a critical solution for many businesses, but how do you know if it’s the right solution for you? Businesses with a multi-location footprint can benefit from how SD-WAN streamlines network complexities across business locations. And with more businesses opting for cloud-based technology, SD-WAN is a critical foundation to help ensure the technology is optimized.

This guide to SD-WAN includes a thorough SD-WAN explanation, the benefits and advantages of SD-WAN, the difference between SD-WAN vs. MPLS and more.

What Is SD-WAN?

You might be wondering, “What is SD-WAN and what does it stand for?” SD-WAN stands for “software-defined wide area network” and refers to the virtual architecture that allows enterprises to optimize delivery across multiple available connections like MPLS, Fiber, DSL, Cable, 4G/5G, and more.

This virtualized network contains three key components: the SD-WAN edge, the controller, and the orchestrator. The edge contains network endpoints (e.g., branch locations, on-site data centers, or cloud platforms). The orchestrator oversees traffic and applies policies. The controller manages the system and enforces security.

Deeper Dive

More businesses today are transitioning and modernizing their networks with SD-WAN. Learn why in this whitepaper.

How Does SD-WAN Work? An SD-WAN Explanation

Traditionally, organizations used rigid, physical routers. Today, with widespread SaaS usage, routing traffic through a central data center is costly and inefficient. SD-WAN supports apps hosted in data centers, clouds, and SaaS platforms like Microsoft 365.

SD-WAN centralizes control and connects networks using broadband, MPLS, and 5G/4G LTE. It offers application-aware routing for optimized traffic and improved service quality.

SD-WAN vs. MPLS

MPLS once provided strong performance but lacked encryption and flexibility. It connected offices through a label system ideal for on-prem traffic but is less relevant today with cloud-first infrastructures.

SD-WAN is flexible, scalable, and cheaper. It’s replacing MPLS as the standard. MPLS usage dropped 24% from 2019–2020 while SD-WAN nearly tripled.

The Benefits of SD-WAN

Nationwide Availability

Use your choice of affordable, reliable connectivity.

Network Flexibility

Leverage any internet access—fiber, 4G, or 5G—unlike MPLS.

High-Quality Performance

Reliable performance enhances productivity and reduces costs.

Cloud VPN Security

Secure edge-to-edge IPSec VPN communication between networks.

WAN Optimization

Forward error correction improves circuit performance and reduces jitter.

Secure Connectivity

VPN encryption, virtual firewalls, and protected traffic between locations.

Application-Aware and Smart QoS

Route traffic by SLA class for optimal service quality.

Flexible Continuity Options

Bidirectional failover minimizes service disruptions.

Multi-Circuit Connectivity & Continuity

Redundant paths provide security and seamless failover.

5G / 4G LTE Connectivity & Continuity

Use wireless connectivity as primary, secondary, or backup options.

Inbound Failover

Supports public IP failover for VPN users and web servers.

What Are the Advantages of SD-WAN?

SD-WAN simplifies secure, cloud-ready IT infrastructure. It helps separate mission-critical traffic from less sensitive data—ideal for industries like healthcare and finance.

Simplicity is a core benefit. Fewer manual network tasks let IT focus on strategic goals. Enterprises enjoy freedom to shift between clouds with easier deployment and control.

The shift to remote work makes SD-WAN even more essential. It supports flexible, secure, remote-ready connectivity. Global connectivity is growing, along with the demand for secure, flexible tools.

Plus, it can save money. Fewer issues, less overhead, and more efficiency.

Why Use SD-WAN From TPx?

TPx customers like Goodwill Industries use SD-WAN to power operations across 34 locations. With automatic 4G failover and built-in firewall protection, they stay up and running.

TPx’s Managed Services provide network diagrams, scaling plans, and hands-on rollout—all while improving business continuity and reducing IT complexity.

Learn More About Our SD-WAN Solutions

To learn more about SD-WAN and what it can do for your business, get in touch with us below.

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