The emergence of software-defined wide area network (SD-WAN) provides software-defined network (SDN) on the basis of traditional hardware network, and multi-protocol label switching (MPLS), a protocol with high network traffic efficiency. MPLS works like a switch and a router and is located between Layer 2 and Layer 3 (MPLS is sometimes referred to as Layer 2.5). It uses packet forwarding technology and labels to make data forwarding decisions. Labels are applied between Layer 2 (data link) and Layer 3 (network) headers.

Compared with the traditional MPLS network, SD-WAN has many advantages. The core value of SD-WAN lies in its great influence on the whole enterprise network ecosystem. With the help of SD-WAN, geographical boundaries can be eliminated and key advantages such as visibility, scalability, performance and control can be enhanced.

Unlike MPLS, SD-WAN has no bandwidth loss, and customers can easily upgrade by adding new links without making any changes to infrastructure or network. The biggest selling point of SD-WAN is that it can mix and match network links cost-effectively according to content type or priority. Internet broadband and 4G LTE are cheaper than MPLS, so for some types of low-priority traffic, customers can choose these links instead of expensive MPLS networks.

The main advantage of SD-WAN is security. Enterprises tend to integrate security, policy and coordinated network architecture, while SD-WAN covers these foundations through unified secure connection. In the SD-WAN architecture, companies can benefit from the end-to-end encryption of the whole network (including the Internet). With the extensible key exchange function and software-defined security, all devices and endpoints can be fully authenticated.