The Connectivity Question: Ethernet/MPLS vs. VPN and SD-WAN for Multi-Location Businesses

by: Rich Weatherby

In the Midwest, businesses of all sizes face an ever-growing demand for reliable, secure, and scalable connectivity between their locations. With technological advancements offering various solutions, many decision-makers are left weighing the pros and cons of Ethernet/MPLS networks versus VPN and SD-WAN solutions. While all three have their merits, the choice often boils down to priorities: security, performance, scalability, and cost.

Let’s explore these options to help you make an informed decision.

VPN and SD-WAN: The Cloud-Centric Contenders

Virtual Private Network (VPN): VPNs have long been a staple for connecting multiple locations, especially for smaller businesses. A VPN leverages the public internet to securely transmit data between sites.

Advantages:

• Cost: VPNs are inexpensive to set up and operate, particularly for businesses that don’t require guaranteed performance.
• Flexibility: They’re great for businesses with limited IT budgets or smaller-scale needs.

Drawbacks:

• Performance Issues: Because VPNs rely on public internet connections, they’re susceptible to latency, jitter, and downtime. If real-time applications like VoIP or video conferencing are critical, these limitations can quickly become roadblocks.
• Security: While encryption offers some protection, VPNs are still exposed to the vulnerabilities of public internet traffic.

SD-WAN: SD-WAN builds on the concept of VPN by creating a software-defined overlay that intelligently manages traffic across multiple internet connections. This solution has gained traction with the rise of cloud-based applications.

Advantages:

• Cloud Integration: SD-WAN excels in connecting to cloud applications, making it a strong contender for businesses heavily reliant on SaaS.
• Cost Efficiency: By aggregating internet connections, SD-WAN can reduce costs compared to dedicated circuits.
• Traffic Prioritization: SD-WAN dynamically routes traffic based on application needs, ensuring high-priority applications get the bandwidth they need.

Drawbacks:

• Reliability: Like VPN, SD-WAN depends on internet connections. While it can improve performance through routing, it doesn’t eliminate issues like packet loss or downtime caused by ISP problems.
• Security Complexity: SD-WAN can integrate advanced security features, but these often require additional investments and expertise.

Ethernet/MPLS: The Performance Powerhouse

For organizations with critical applications, high data volumes, or stringent security requirements, Ethernet and MPLS networks offer a level of reliability and performance that internet-based solutions often can’t match.

Advantages:

• Guaranteed Performance: Ethernet/MPLS networks provide dedicated bandwidth, ensuring consistent performance for latency-sensitive applications like VoIP, video conferencing, or data replication.
• Superior Security: Since these connections are private and don’t traverse the public internet, they’re inherently more secure. This is particularly appealing for industries like healthcare and finance.
• Scalability: Ethernet/MPLS networks can easily scale to accommodate growing bandwidth needs without sacrificing performance.
• Reliability: With service level agreements (SLAs) guaranteeing uptime and performance metrics, these networks are ideal for businesses that can’t afford downtime.

Drawbacks:

• Cost: Ethernet/MPLS networks typically have higher initial and recurring costs compared to VPN and SD-WAN solutions. However, for businesses where uptime and performance are critical, this cost is often justified.
• Implementation Time: Deploying dedicated circuits can take longer than provisioning an SD-WAN overlay or VPN. Businesses should account for lead times when planning.

Which Option is Right for You?

Consider Ethernet/MPLS If:

• Your business relies heavily on real-time applications that require low latency and high reliability.
• You handle sensitive data and require a secure, private connection.
• Your locations are in areas where internet reliability is inconsistent, as Ethernet offers dedicated paths.

Consider VPN or SD-WAN If:

• Your organization primarily uses cloud applications and doesn’t require guaranteed performance.
• You’re looking for a cost-effective solution and can tolerate some variability in performance.
• You have the in-house expertise to manage security and performance optimization for your network.

Why the Midwest Makes the Decision Unique

Businesses in the Midwest often face unique challenges, from urban hubs like St. Louis or Kansas City to rural communities where connectivity options may be limited. Ethernet providers with strong regional networks—like Bluebird Fiber—can offer businesses a reliable and secure alternative in areas where public internet options may falter. These providers often deliver local expertise, faster response times, and dedicated infrastructure tailored to the needs of businesses in the region.

Final Thoughts

While VPN and SD-WAN have their place in modern connectivity, they often fall short for businesses prioritizing reliability, security, and performance. Ethernet/MPLS networks, while an investment, offer peace of mind for organizations that depend on their connectivity to drive mission-critical operations.

The best solution depends on your specific needs, priorities, and growth plans. Taking the time to assess your current and future requirements will ensure your business is equipped with the right foundation for success.

Have you made the choice between Ethernet/MPLS and SD-WAN? What factors influenced your decision? Let’s discuss in the comments below.