The Many Ways SD-WAN Can Reduce Costs

February 3, 2020

Enterprises looking for ways to gain more control over their networking costs in the increasingly complex world of cloud migration are upgrading to software-defined wide area networking (SD-WAN). With improved visibility and control, SD-WAN allows organizations to reduce costs and gain more insight into how traffic and performance are impacted by specific application requirements.

One of the main motivations for moving to SD-WAN is the cost reduction that comes with replacing multi-protocol label switching (MPLS) lines. While reliable and secure, MPLS becomes costly with the increased adoption of bandwidth-hungry cloud solutions. The savings associated with switching from MPLS to broadband and other pathways is measurable, with enterprises reporting a reduction of upwards of 50% of networking costs.

MPLS alternatives aren’t the only source of savings. There are additional areas that help boost the healthy return on investment from implementing SD-WAN: 

Right-Sizing Circuits: In many situations, enterprise IT is forced to over-provision a circuit to allow for the variable bandwidth available in IP-based circuits. When transitioning to SD-WAN, this need to over-provision is no longer present. If you consider that right-sizing circuits from a 50 Mbps line down to a 25 Mbps line may result in a $20 per month savings and then multiply that savings across multiple lines, the cost reduction can be significant. 

Overlay Cost Structure: SD-WAN providers generally invoice for services based on the traffic volume that traverses their solution. The cost is based on the size of the circuit that connects to the service, with a certain cost for a 10 Mbps line versus a 25 Mbps line, for instance. You can reduce these costs by choosing an SD-WAN solution that offers a low flat fee, rather than a usage-based fee. You may save up to $50 per site with a flat fee. 

Fewer Networking Problems: SD-WAN’s dual circuits and intelligent path control will eliminate many of the network issues that previously caused headaches. With better, automated control over management, there are fewer opportunities for errors related to site changes or updates. You’ll have fewer site calls to the service desk, and with centralized visibility, network professionals can assist branch locations from headquarters and eliminate travel costs.

IT Management: The centralized control design and automated features reduce the need for specialized engineers for network changes. The effort and cost to maintain and deploy the network also decrease.

When examining the possibility of an upgrade to SD-WAN, it’s important to consider the total cost of ownership by including all expected cost savings. While these factors aren’t usually what motivates the initial conversation surrounding a network upgrade, the cost reduction can be measurable.To learn more about how to reduce costs through infrastructure upgrades, contact us at Access Tech. We can guide you through the SD-WAN selection process to help you choose a solution that delivers immediate cost savings, as well as ongoing improvements for your infrastructure budget.

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