• IS SD-WAN CANNIBALISTIC TO MPLS?

    Telecom companies are always on the lookout for opportunities to generate new revenue through emerging communication technology. Although still in their relative infancy, Software-Defined Wide Area Network (SD-WAN) services have already proven themselves to be major money makers.

     

    As great as these new SD-WAN revenue streams are, they have also introduced some concerns regarding the telecom service industries ability to sustain both SD-WAN and Multiprotocol Label Switching (MPLS) solutions. In particular, some worry that the natural overlap between these two technologies creates an either/or scenario, and as SD-WAN increases in popularity, MPLS solutions will inevitably suffer. Will an expansion of SD-WAN services cannibalize MPLS revenue?

     

    The basis for SD-WAN concerns

    Is there a valid reason for all of these fears about the future of SD-WAN and MPLS? Well, there's no denying that SD-WAN is booming in popularity right now, spurred on by enterprise needs for stronger network connectivity and availability at the last mile to reach all of its end users. According to a July 2017 report, global SD-WAN infrastructure and service revenue will continue to increase at a 69.6 percent compound annual growth rate through 2021, when it will eclipse $8 billion.

    Know more: MPLS vs internet

    In many ways, SD-WAN is the solution to the mounting problem of how to sufficiently support businesses that increasingly rely on cloud-based solutions. Branch and remote offices often experience less-than-ideal network connectivity compared with central operations. SD-WAN allows for more dynamic path selections, enabling companies to more efficiently and cheaply transmit data across their networks.


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