SD-WAN vs. MPLS comes up often when teams rethink how their networks should run. Fully understanding SD-WAN helps answer that, but the better option depends on what your business needs most.

What is MPLS, and how does it work?

MPLS (Multiprotocol Label Switching) is an older method of routing that moves data along set paths called label-switched routes. Instead of checking the IP address of every packet, routers use short labels to decide where data goes. That saves time and keeps things more predictable.

Many industries still use MPLS, especially finance, healthcare, and insurance. These sectors care about stable connections and low latency. MPLS helps deliver that by running on dedicated circuits managed by carriers, often with service-level guarantees.

There are downsides.

Setting up a new MPLS link often takes weeks or even months. It also costs more because you’re locked into using the carrier’s network and equipment.

Changing your network setup quickly is hard. Adding new locations, rerouting traffic, or scaling bandwidth doesn’t happen fast.

Most of the time, MPLS works best when everything is fixed, same users, same apps, and the same traffic every day. That doesn’t line up well with how today’s networks need to operate.

Most MPLS links rely on leased lines that are expensive and slow to provision.

What is SD-WAN, and how is it different?

SD-WAN (Software-Defined Wide Area Networking) is a way to control how traffic moves across a network using software, not fixed circuits. It supports connections over LTE, broadband, or fiber backhaul, making it flexible for mixed environments.

Traffic travels through encrypted tunnels. A central controller sets the rules for how that traffic should move. If a link slows down or drops packets, SD-WAN shifts the traffic to a better one, often in under a second.

Cloud apps, remote teams, and changing work patterns have made static connections harder to manage. SD-WAN helps by removing the need for carrier-owned circuits. You get more control without relying on one provider.

It also lets you split traffic into different paths. Voice can take one route, while guest Wi-Fi takes another. Business apps can remain fast and stable without overpaying for bandwidth you don’t need.

Key differences between MPLS and SD-WAN

Both technologies move traffic across wide-area networks. Still, the way they do it and what that means for your business will differ at every level. 

Transport type

MPLS runs on private circuits owned and operated by the carrier.

SD-WAN uses whatever transport is available: fiber, LTE, broadband, or all three.

With MPLS, every site needs a dedicated circuit. SD-WAN connects over the public internet but adds encryption and control at the software layer.

Cost

MPLS often comes bundled with hardware, service contracts, and long-term carrier control. SD-WAN sidesteps most of that by using dedicated internet, broadband, and wireless together.

The network can scale up or down without needing to renegotiate contracts. Budgets stay tighter because you're not paying for fixed-capacity circuits you may not fully use.

Provisioning speed

New MPLS links often require site surveys, trenching, and multi-week lead times. SD-WAN rolls out much faster by using existing lines or quick-to-install wireless.

Getting a site online doesn’t require waiting for a carrier technician. Most deployments finish in days, not months.

Application routing

Traffic over MPLS usually follows the same route unless manually reconfigured. SD-WAN selects paths based on what the application needs, like speed or low packet loss.

Voice calls can skip congested links while file sync runs in the background. Every application gets the route that fits its behavior.

Visibility

MPLS gives you limited control unless you pay extra for carrier-grade monitoring. SD-WAN puts traffic analytics and live link health into a single dashboard.

Teams no longer guess where delays are coming from. Decisions can be based on real numbers, not assumptions.

Failover

With MPLS, backups often sit idle or need human intervention. SD-WAN watches each path and reroutes traffic the moment it detects a problem. There’s no need for separate hardware just to manage failover. Everything happens through the same software layer that controls routing.

Security

MPLS doesn’t encrypt traffic by default. SD-WAN builds encryption, segmentation, and policy enforcement into the tunnel.

Sensitive data stays isolated, and risky apps never touch production routes. Network design can support zero-trust goals without extra appliances.

Can SD-WAN replace MPLS entirely?

In most cases, yes, SD-WAN can fully take over where MPLS was once required. For many companies, SD-WAN is the most practical MPLS replacement available today.

There are edge cases where MPLS still has value.

Applications that need ultra-low latency or guaranteed performance down to the millisecond, like high-frequency trading, may still rely on dedicated circuits.

Some industries also use MPLS to meet strict regulatory rules tied to specific SLAs.

Those exceptions don’t rule out SD-WAN. Running SD-WAN over MPLS is common during the early stages of a network transition. That way, critical apps stay on known paths, while everything else moves to broadband, DIA, or LTE.

What most companies find is that SD-WAN doesn’t just act as a cheaper pipe. It introduces better traffic control, more visibility, and real-time routing choices that MPLS never offered.

Even when a hybrid setup is required at first, SD-WAN becomes the long-term foundation. MPLS fades into the background or gets retired altogether.

SD-WAN vs. MPLS cost comparison

Cost is one of the biggest reasons companies move away from MPLS. SD-WAN is often viewed as the most cost-effective MPLS alternative, especially for distributed networks.

This table illustrates how the billing differs between SD-WAN and MPLS:

Monthly fees for MPLS circuits are high, and most plans include hardware, routing services, and bundled SLAs. Even basic changes, like adding a site or upgrading capacity, can lead to extra charges.

SD-WAN gives more flexibility. You can mix dedicated internet, broadband, and wireless to meet each site’s needs. There’s no forced bundling or markup on transport. Instead, you decide how much to spend and where.

Ongoing savings come from fewer carrier contracts, faster deployments, and less downtime. SD-WAN also means less time spent chasing down issues through support tickets or field visits.

Many Meter customers see their network costs drop by 40–60% after switching. The savings tend to grow over time, especially when starting with sites that have long-term MPLS contracts or fixed high monthly fees.

MPLS vs. SD-WAN: Benefits and drawbacks of each

Both SD-WAN and MPLS have valid use cases. What works best depends on how the network is used, how often it changes, and what kind of control is needed.

SD-WAN advantages:

• Works with any combination of internet, fiber, LTE, or broadband
• Fits remote teams and hybrid cloud setups without extra circuits
• Keeps traffic online using built-in failover between active paths and includes real-time insight into network performance metrics

Routing rules and firewall updates can be managed from one place. Changes apply across every site without delay, which makes the network more responsive and easier to maintain.

MPLS pros (still valid in some cases):

• Delivers stable and consistent performance across fixed paths
• Works well in hub-and-spoke setups with central data centers
• Meets the strict needs of trading platforms and legacy financial systems

Some businesses still use MPLS for workloads tied to specific SLAs or compliance requirements. In those cases, SD-WAN often runs alongside MPLS. That gives the business more visibility and control while keeping key systems on their original path.

Common enterprise use cases

MPLS-to-SD-WAN migrations are happening in every major industry. Teams want more control, faster rollouts, and lower recurring costs. SD-WAN fits those needs without the complexity tied to legacy networks.

Retail or branch networks

Retailers often pair SD-WAN with fiber and LTE for each store. Automatic failover keeps point-of-sale systems running during outages.

Network segmentation separates payment systems from guest Wi-Fi, which reduces risk and simplifies compliance.

IT teams can apply changes across all stores at once. There’s no need to reconfigure routers site by site.

Global organizations

Multinational teams use SD-WAN to cut MPLS expenses and gain routing control across countries. Dedicated internet and broadband links support remote sites without waiting for new carrier circuits.

Central IT controls routing rules from one interface. Local teams still have room to adjust based on traffic needs, time zones, or available bandwidth.

SASE rollouts

Secure Access Service Edge (SASE) models often start with SD-WAN. Traffic flows through cloud-based tools like Zero Trust Network Access (ZTNA), Cloud Access Security Broker (CASB), and Secure Web Gateway (SWG) instead of physical firewalls.

SD-WAN identifies the best path to each tool, so user access stays fast and reliable without relying on a single choke point.

Cloud-native networks

Public cloud platforms perform better when traffic isn’t forced through a central site. MPLS can’t adapt to changing cloud paths or regional shifts in app traffic.

SD-WAN sends users straight to cloud services over the best available link. Routing decisions adjust in real time based on latency, packet loss, or application type. Such a level of control supports video calls, real-time editing, and remote collaboration.

SD-WAN vs. MPLS FAQ

What role does SD-WAN play in network automation?

SD-WAN reduces manual tasks by centralizing policy updates, routing decisions, and link monitoring.

Why do some teams keep MPLS even after adding SD-WAN?

They may need guaranteed performance for legacy apps or be mid-contract with a carrier.

How do companies test SD-WAN before a full rollout?

Most start with a few locations, run side-by-side with MPLS, and monitor real-time results.

What kind of visibility does SD-WAN offer that MPLS doesn’t?

Teams can see traffic paths, link health, and app usage without logging into each device.

How do latency-sensitive apps behave on SD-WAN?

They perform well when multiple links are active. The software shifts traffic to avoid jitter or delay.

What changes for IT teams when MPLS is replaced?

Support shifts from carrier ticketing to direct control. Issues are resolved faster with fewer handoffs.

Are there different types of SD-WAN?

Yes, some are hardware-first, while others are cloud-delivered. Features vary across vendors.

How does SD-WAN handle compliance?

Traffic segmentation, encryption, and centralized logging help meet standards like HIPAA and PCI-DSS.

What is required to deploy SD-WAN at a new site?

All you need are a working internet connection, a configured device, and power. No waiting for a carrier install.

Do companies still use leased lines with SD-WAN?

Yes, especially for sites that need symmetrical bandwidth or guaranteed performance under load.

Meter Connect helps migrate enterprises from MPLS to SD-WAN

Meter helps businesses move off MPLS and switch to SD-WAN without downtime or delays. When comparing SD-WAN vs. MPLS, the difference comes down to cost, speed, and flexibility, and most teams are ready for a change.

Meter Connect offers fast, low-latency internet with the same upload and download speeds. Our team handles setup across all sites, even when locations vary. You can keep MPLS in place during the transition or drop it completely, whatever works best.

SD-WAN also needs reliable links to perform well. Meter delivers that as well with a network we fully own and manage. Our vertically integrated model gives companies more control, faster installs, and better service across every connection.

For companies looking to do more, add locations, support remote work, or improve uptime, this approach unlocks real growth. Our Network Operations Center monitors every link at all times. If something goes down, failover happens fast and without guesswork.

We also offer private LTE using neutral-host CBRS. Cellular adds wireless coverage where needed and helps teams stay connected even without wired service.

It all starts with a better connection, so request a quote from us today on Meter Connect.