MANAGED SD WAN // Managed Services,SD-WAN

How Does SD-WAN Reduce Costs

February 20, 2023

It is estimated that by 2028 SD-WAN technology will have a market size of USD 5520.9 million, at a CAGR of 26.2%.


SD-WAN solution has shaped the landscape of management of distributed data networks, especially in the corporate branch. Strictly speaking, this is an opportunity to offer new options against traditional WAN networks, because many companies now centralize access to the matrix or store data and files in the cloud (public or private cloud). Software-based networks have shown many advantages, and traditional WANs, whose days of obsolescence seem to be over, needed to be designed to meet the demands of existing network management, traffic control, and applications.

It is estimated that by 2028 SD-WAN technology will have a market size of USD 5520.9 million, at a CAGR of 26.2%. The software-defined option offers better performance and flexibility and lower maintenance costs compared to a traditional WAN.

The SD-WAN solution can fully optimize your organization's network management, enabling benefits such as centralized management capabilities, greater data visibility and greater automation, reducing complexity and increasing IT efficiency.

What Is SD-WAN

Software Defined Wide Area Network (SD-WAN) is a technology wherein the traditional WAN is virtualized. Software defines the connection between users and applications by combining transport services MPLS, LTE and broadband internet services to ensure consistent, uninterrupted connectivity. The idea is to have a unified connection for all the locations of a business, connecting to the same, secure network using a cloud-based private network or the internet.

The purpose is to use software to make broadband networks smarter and more flexible. This usually starts with connecting the sites directly to the Internet via basic broadband links, rather than sending all traffic back to the regional office via private lines. Configuration and access policies are centrally managed and can easily be applied across sites, eliminating the need to manually manage each WAN device separately.

Why Is SD-WAN Important?

Digital transformation and the use of modern cloud-based applications and technologies are empowering and creating new ways of doing business that is driving change in all industries. The first step for many organizations is to ensure that their increasingly dispersed workforce has secure, fast, and always available access from any convenient location.

Today, organizations need agile, flexible, and cost-effective IT solutions if they are to compete effectively. They need solutions that are easy to implement,  scalable, and meet the needs of growing businesses. Additionally, in a world where downtime can affect both reputation and the bottom line, they need to be sure that the network solutions they choose are always up and running.

SD-WAN network solves these problems and more, especially with new approaches that also bring enterprise scale and security. That is why it is becoming one of the most popular online solutions today. But one of the main reasons why it is imperative is, it helps to reduce costs.

How Does SD-WAN Reduce Costs?

SD Wan as a service supports different types of connections, such as MPLS network, Internet, and ADSL link, e.g. the ability to share the workload through connections; automatic forwarding support for premium network services such as VPN, firewalls, WAN optimization, and application forwarding management. Here are some tips on how to optimize your  SD-WAN usage and how it can help you cut your business budget.

Improved performance and productivity -

SD-WAN solution allows traffic to be automatically and dynamically routed through the most appropriate WAN path based on security conditions, quality of service requirements, and circuit costs. The network administrator sets the routing policies for the operation. With the introduction of this technology, it is possible to optimize internal processes related to information management and enterprise network management, significantly improving application and employee productivity.

Lower Support Costs

With an SD-WAN solution, the frequency of technical support is reduced. The reduction in calls is due to the higher processing, storage, and transmission capacity of software-defined WANs compared to data volume. The cloud structure is also a great tool to optimize maintenance logistics. Thanks to the resources provided by the cloud, everything can be done online, and remotely.

Utilize all available network connections

- SD-WAN solution enables automatic workload balancing and WAN congestion management for best performance and low routing costs. Here's how it works: If Voice-over-IP (VoIP) traffic is not directed to the MPLS VPN service and the MPLS connection is congested,  SD-WAN can direct that traffic to the broadband 

G LTE wireless circuit, allowing the use of available resources and securing a packet. So take SD WAN Router for a better connection.

Use of cheaper broadband connections -

The SD-WAN managed services, measure the performance of WAN links in real time and immediately adapt to possible network failures.

Return on investment -

SD-WAN solution is cost-effective because it increases the reliability of WAN services, internet, and mobile connection and significantly reduces communication costs. You can solve various problems with SD-WAN access. Traditionally,  WAN management has been one of the most expensive and inflexible aspects of a company's network operations. However, the SD-WAN technology makes it easy to manage WAN device capabilities because they are programmable and can be remotely changed and adapted to meet the needs of the environment. It is important to emphasize that the SD-WAN solution can be implemented in companies of different segments, adapting it in the best possible way according to internal processes and needs.

 In summary, keep in mind the cost areas affected by the transition to SD-WAN As A Service:

  • Savings from switching to cheaper IP-based circuits
  • Savings from right-sizing circuits
  • Savings from reduced SD-WAN deployment costs
  • IT services savings from reduced desktop
  • Reduced IT management savings

SD-WAN offers flexibility and choice

As applications moved from the data center to the cloud, companies needed a new way for their offices to access services and software. SD-WAN is a huge leap towards a more flexible approach. Today, it is the next evolution and businesses have many more options for online collaboration and cloud services, and Intel can help with resources, guidance, and key hardware solutions.

If you are considering moving to SD-WAN, make sure you have answered the critical questions Why SD-WAN? Once you've gone ahead and researched SD-WAN costs, consider all of the above factors, not just hardware and software costs, when calculating the total cost of ownership. You can often find enough TCO savings to pay for an SD-WAN upgrade within a few years.

So, if you want to fully optimize your organization's network management, enabling benefits such as centralized management capabilities with greater data visibility and automation, use SD-WAN Solution and reduce and thus increase efficiency.


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