This post comes from the team at TeleGeography; the original version was first published here. It is part of a series of posts called “Wargaming your WAN.” You can read the series from the beginning starting here on TeleGeography's blog.
While we’re dealing with hypothetical networks to test these ideas, know that there are actual radicals (those who decided to leave behind MPLS and go full internet) out there doing this in the real world. In fact, at WAN Summit New York 2019, Gate Group presented a case study on how they were securing their network after having left behind MPLS and adding SD-WAN. Gate Group has been all internet for the past several years and adopted SD-WAN so early they “didn’t call it SD-WAN back then.” The bleeding edge is real!
Gate Group may be in a small minority, but perhaps not for long. Our 2018 WAN Manager Survey indicated that more than a third of those adopting SD-WAN planned to jettison MPLS altogether in the near future. Certainly, many SD-WAN vendors have argued that their products are able to completely replace MPLS. While it’s definitely still a minority in 2019, it’s worth running the numbers to see how these networks might compare to our original MPLS configuration.
Leaving behind MPLS—and especially all but a couple of dozen access lines—can be a smart pricing move.- Telegeography
If the prospect of giving up all carrier guarantees in the WAN is too much, a WAN manager might opt to mix uncontended, SLA-protected DIA with business broadband. So the first scenario we tested was a DIA-business broadband hybrid. This network had the following assumptions:
What is the Product Mix and Bandwidth Ranges of the All-Internet DIA-Broadband Hybrid?
Image 1 - On-net DIA Broadband Hybrid WAN Site Capacity Range
Image 2 - On-net DIA-Broadband Hybrid WAN Average Total Site Capacity by Subregion
How Much Can You Save by Adding SD-WAN and Going Full Internet?
Image 3 - Original MPLS & On-net DIA Broadband Hybrid WANs with Unmanaged SD-WAN Annual TCOs
Leaving behind MPLS—and especially all but a couple of dozen access lines—can be a smart pricing move. But there may be hidden costs or downsides to an all-internet solution, even with SD-WAN. If one is prepared to go that way, though, there is no doubt that the network savings are real. The on-net DIA-broadband hybrid WAN, including SD-WAN for the added site capacity comes at a 54% discount for a 236% capacity increase.
Finally, the most radical network transformation away from traditional MPLS would be transitioning to a (mostly) business broadband WAN. Truly risk-tolerant and capacity-hungry enterprises have the option to simply use dual broadband links at each site to have active-active connections required by SD-WAN. Since we knew this would be a dramatic price decrease, we took this scenario as an opportunity to really boost average site capacity.
This may not be a realistic scenario for many enterprises, as it assumes diverse broadband availability at 100% of sites, but it’s worth thinking about.
The parameters of this network:
How Much Can We Boost Available Site Capacity by Switching to All Business Broadband?
Image 4 - Dual Broadband Hybrid WAN Site Capacity Range
Image 5 - Dual Broadband WAN Average Total Site Capacity by Subregion
How Radical Are Costs Savings When Moving to an All Business Broadband WAN?
Image 6 - Original MPLS & Dual Broadband Hybrid WANs with Unmanaged SD-WAN Annual TCOs
SD-WAN costs in this scenario have gone up, given the additional capacity, to our highest SD-WAN costs yet. They are now about $772,000 per year. Network costs have gone way down. This network at 300% the available average capacity is 75% cheaper than the original MPLS VPN WAN.
This network at 300% the available average capacity is 75% cheaper than the original MPLS VPN WAN.- TeleGeography
For those that may be able to tolerate the lack of guarantees—and perhaps additional outages and hassles—an enterprise could potentially save at the radical levels once popularly touted by the SD-WAN providers.
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