When your business relies on stable internet to process transactions, manage multiple locations, or access cloud-based tools, your network setup plays a direct role in how well your operations run.
For many years, companies have used technologies like WAN and MPLS to stay connected across different sites. These systems were designed for a time when most applications were hosted in on-site servers and traffic flowed through central data centers.
Today, that model is changing. More businesses are using tools that live in the cloud, support remote work, and depend on real-time communication. This shift has created new demands for performance, flexibility, and cost efficiency.
SD-WAN was developed to meet those needs. It offers a smarter, more adaptable way to manage network traffic across multiple locations using a mix of internet and cellular connections.
To understand how SD-WAN compares to WAN and MPLS, let’s start by looking at each technology individually. Then we’ll review how they perform side by side and explore which one may be the best fit for your business.
This post covers the following topics:
- What is SD-WAN?
- SD-WAN Benefits
- What is WAN?
- What is MPLS?
- How These Technologies Can Work Together
- How SD-WAN, WAN, and MPLS Are Used Across Industries
- Choosing the Right Fit for Your Business
- POND IoT SD-WAN Solution
What is SD-WAN?
SD-WAN stands for Software-Defined Wide Area Network. It is a way to connect business locations using different types of internet links, managed through software instead of hardware-based routing.
In this setup, a company might use fiber at its main office, broadband at smaller sites, and cellular connections at temporary or remote locations. These links work together under one system, which checks the condition of each connection and sends traffic through the one that performs best at the moment.
If a video call needs low delay, the system may choose the most stable path available. If a file update isn’t urgent, it can be routed over a slower or more affordable connection. If a line stops working, traffic is automatically moved to another one without needing manual action.
The hardware used for SD-WAN is often delivered ready to go. Once installed, it connects to a central platform that handles most of the network control. This allows a business to manage all of its sites from one place, without having to configure each location separately.
SD-WAN is often used by companies that work from many sites or use cloud-based tools. It helps reduce costs and makes it easier to keep the network running even when something goes wrong at one location.
SD-WAN Benefits
SD-WAN offers a range of advantages that support cost savings, better performance, and easier management across networks.
Key benefits include:
- Lower costs by using broadband or wireless connections instead of private lines
- Flexible deployment with support for multiple connection types in various locations
- Improved uptime through automatic failover and real-time traffic steering
- Simplified control with centralized network management and visibility
- Faster access to cloud applications through direct internet connectivity
These benefits make SD-WAN a practical solution for businesses looking to modernize their network without adding complexity.
What is WAN?
A Wide Area Network (WAN) connects multiple locations over long distances. It’s built using a mix of private leased lines, broadband, or other telecom links to connect branch offices, warehouses, or remote teams back to a central hub—usually a company’s main data center or headquarters.
Traditional WANs often follow a hub-and-spoke model, where all traffic from branch locations is routed through a central point before reaching the internet or cloud services. To make this work, businesses typically use VPN tunnels over leased lines, plus on-site routers and firewalls at each branch.
Setting up and managing a WAN usually requires:
- Specialized network hardware at each location
- Manual configuration and troubleshooting
- Heavy involvement from IT staff or service providers
While WANs provide a measure of control and can be secured with the right setup, they are not built with today’s cloud-based workflows in mind. When employees use applications like Microsoft 365, Salesforce, or Zoom, the data often needs to travel to the main data center first, then out to the internet. This “backhauling” adds latency and can cause slow performance, especially if the main office has limited bandwidth.
What is MPLS?
MPLS stands for Multiprotocol Label Switching. It’s a networking method that became widely used by large companies that needed reliable and consistent performance between their offices and data centers.
Unlike traditional routing, where each packet of data finds its own way across the internet, MPLS assigns a specific path in advance. This path is marked with labels, which tell the network exactly where the traffic should go. Because the route is already set, data moves quickly and avoids the delays that sometimes happen with regular internet traffic.
MPLS worked well for applications that could not afford interruptions, such as voice calls, video meetings, or time-sensitive transactions. It gave businesses a way to keep control over network behavior, especially when quality and predictability were more important than cost.
Setting up an MPLS connection usually involves working with a telecom provider to install dedicated circuits. This process can take several weeks. Adding new sites isn’t always simple either, since each location often needs its own connection and equipment.
Although the performance is strong, the price is high. Compared to public internet, MPLS is expensive to run and maintain. It also doesn’t work well with modern cloud applications, which expect fast, direct internet access rather than routing everything through a central point.
Some businesses still use MPLS for specific parts of their network, but it’s becoming less common as more flexible and cloud-ready options like SD-WAN become available.
How These Technologies Can Work Together
In many business environments, SD-WAN is not used as a complete replacement for existing networks but rather as an additional layer. It can be deployed alongside MPLS or traditional WAN connections, offering more flexibility without requiring a full transition from one system to another.
For instance, a company may continue to use MPLS at its main office to support high-priority applications such as video conferencing, while branch locations operate over SD-WAN using broadband or wireless connections. In this setup, MPLS remains in place where its strengths are needed, and SD-WAN brings agility and cost savings to the rest of the network.
Retail operations sometimes use SD-WAN together with wireless LTE backup. In these cases, multi-carrier SIM cards are added to provide automatic failover when the primary internet connection is unavailable. This approach helps prevent service interruptions during peak hours without relying on expensive fixed-line redundancy at every site.
By combining technologies in this way, businesses can maintain the reliability of their existing infrastructure while gaining the performance and scalability benefits offered by SD-WAN.
How SD-WAN, WAN, and MPLS Are Used Across Industries
- Retail chains: POS systems, inventory tools, and digital displays require stable connectivity across many locations. SD-WAN supports these setups by using broadband with wireless backup, helping avoid downtime during service disruptions.
- Construction companies: Temporary job sites often lack wired internet. SD-WAN paired with 4G or 5G allows fast deployment and reliable communication without waiting for infrastructure.
- Healthcare clinics: Cloud-based records and remote monitoring tools depend on stable links. SD-WAN improves uptime by automatically switching to a backup connection if the primary one fails.
- Banks and financial institutions: Many still rely on MPLS at core locations for secure, consistent performance. SD-WAN is often added to support cloud access, ATM monitoring, or remote work, without replacing existing systems.
- Manufacturing and logistics: Factories and distribution centers often need to connect production lines, IoT sensors, and inventory systems across multiple sites. SD-WAN provides centralized control and reliable communication paths while integrating with existing MPLS or cellular links. It also enables edge computing and ensures uptime even in remote or challenging environments
Choosing the Right Fit for Your Business
Selecting the right network solution depends on how a business operates, where its challenges lie, and what kind of flexibility it needs going forward. The points below can help guide that decision:
- For businesses with high control requirements or strict SLAs: MPLS may still be appropriate at key sites where performance must remain consistent and tightly managed.
- For companies expanding into new locations quickly: SD-WAN simplifies deployment and allows new sites to come online without relying on long provisioning timelines or fixed infrastructure.
- For organizations using cloud-based tools across departments: Direct internet access from branch locations, supported by SD-WAN, often improves speed and reduces network congestion.
- For businesses seeking more flexibility in traffic routing: SD-WAN offers centralized management and real-time path selection, making it easier to adapt to network conditions as they change.
- For networks prone to outages or inconsistent connections: SD-WAN’s built-in failover capabilities help maintain operations without requiring manual recovery or intervention.
In many cases, combining SD-WAN with existing MPLS or WAN infrastructure creates a balanced solution — one that supports both reliability and adaptability while easing the transition to a more modern network.
POND IoT SD-WAN Solution
A reliable internet backup connection is essential for maintaining uninterrupted business operations. POND’s SD-WAN Internet Failover solution is designed to support digital continuity and network stability, helping organizations stay connected when their primary connection goes down.
For businesses with high data demands, usage can be pooled across multiple devices and locations, even across borders, making it easier to manage data plans at scale.
Connectivity is powered by full access to three of the nation’s largest carriers, providing additional layers of redundancy. POND’s SMART SIM automatically switches to the strongest available network whenever the primary connection fails, ensuring seamless failover without manual intervention.
To support different use cases, a range of Internet Failover plans are available, offering flexible options for backup connectivity across industries and deployment environments.