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How to Choose the Right WAN Technology for Your Enterprise

When an enterprise grows and begins to establish multiple remote sites, one of the critical challenges it faces is maintaining reliable and secure communication between those sites. This is where Wide Area Network (WAN) technologies come into play. WAN technologies allow businesses to extend their network over large geographic areas, enabling seamless communication, data exchange, and access to resources regardless of location.

WAN Technology Topology Speeds OSI Layer CoS/QoS Network Technology Cost
MPLS Full/Partial Mesh Up to 100 Gbps (dependent on ISP) Layer 2.5 Yes Private Label switching High
SD-WAN Mesh/Hub-and-Spoke Varies (based on underlying links) Layer 3 Yes Hybrid Software-defined Moderate to High
FlexVPN Hub-and-Spoke Up to 10 Gbps Layer 3 No Private/Public IKEv2-based VPN Moderate
DMVPN Hub-and-Spoke/Dynamic Mesh Varies (dependent on internet bandwidth) Layer 3 No Private/Public Dynamic VPN (IKEv2/IPsec) Moderate
GRE Point-to-Point Varies (dependent on tunnel link) Layer 3 No Public Tunneling (encapsulation) Low
Metro Ethernet Point-to-Point, Hub-and-Spoke 1 Gbps to 100 Gbps Layer 2 No Private Ethernet-based WAN High
Frame Relay Hub-and-Spoke 56 Kbps to 1.5 Mbps Layer 2 No Private Packet-switched Low
IPsec Tunnels Point-to-Point Varies (based on internet link) Layer 3 No Public IPsec encryption Low
Site-to-Site VPN Hub-and-Spoke, Full Mesh Varies (based on internet link) Layer 3 No Public VPN (IPsec, SSL) Low

However, choosing the right WAN technology is not always a straightforward task. Each WAN option comes with its own set of strengths and weaknesses in terms of cost, complexity, security, and scalability. This article aims to explore the most common WAN technologies available, discussing their key characteristics to help you make an informed decision for your enterprise.

Key Factors in WAN Technology Selection

Before delving into the various WAN technologies, it’s important to understand the factors that influence the decision-making process.

  • Complexity: Some WAN technologies are simple to implement and manage, while others require more intricate configurations and expertise.
  • Security: Security is a top priority for enterprises, especially with sensitive information traversing the network. Some technologies provide inherent security features, while others require additional layers of protection.
  • Cost: Costs can vary depending on the technology, whether it's provided by an ISP or requires investment in specialized equipment.
  • Scalability: As your organization grows, the ability to scale your WAN infrastructure to support more users and locations is crucial.

With these factors in mind, let's explore the different WAN technology options.

 

1. Multiprotocol Label Switching (MPLS)

Provided by: ISP

Complexity: Moderate

Security: Moderate

Cost: High

Scalability: High

MPLS is a popular choice for enterprises with multiple branch locations. It is a private network technology provided by Internet Service Providers (ISPs) and is known for its reliability and ability to prioritize traffic through Quality of Service (QoS). MPLS networks offer low-latency connections, making them ideal for businesses that rely on real-time applications such as voice and video conferencing.

However, the cost of MPLS is higher than many other WAN technologies, primarily because it is a managed service. Additionally, while MPLS offers some level of security, it is not inherently encrypted, which means additional security measures like IPsec might be required for sensitive data.

Pros:

  • Reliable with high performance for real-time applications.
  • QoS support ensures that critical traffic gets priority.
  • Scalable for large enterprises with numerous remote sites.

Cons:

  • High cost, especially for large deployments.
  • Moderate security; requires additional encryption for high-security needs.
  • Dependent on the ISP for management and configuration.

 

2. Software-Defined WAN (SD-WAN)

Provided by: Enterprise

Complexity: Moderate

Security: High

Cost: High

Scalability: Very High

SD-WAN is a more modern WAN technology that has been gaining popularity due to its flexibility and cost-effectiveness compared to MPLS. SD-WAN allows enterprises to leverage a combination of internet, MPLS, LTE, and other connections to build a secure and efficient WAN. This is achieved through centralized control software that intelligently routes traffic based on real-time conditions, application requirements, and business policies.

SD-WAN offers enhanced security through encryption and segmentation, making it highly secure for enterprises that handle sensitive data. Additionally, it provides better control over traffic and reduces dependency on expensive MPLS lines, allowing companies to optimize their network performance at a lower cost.

Pros:

  • Flexible and scalable to accommodate different connection types.
  • Enhanced security with built-in encryption and traffic segmentation.
  • Centralized management simplifies administration.

Cons:

  • Higher initial setup costs.
  • May require more advanced technical knowledge to configure and manage.
  • Internet-based connections can introduce latency if not carefully managed.

 

3. FlexVPN

Provided by: Enterprise

Complexity: Moderate

Security: High

Cost: Moderate

Scalability: High

FlexVPN is a Cisco-based technology that offers a secure and scalable VPN solution using a single unified framework. It is based on the Internet Key Exchange version 2 (IKEv2) protocol and supports various encryption techniques to ensure high levels of security.

FlexVPN is known for its versatility, as it can integrate with both MPLS and traditional VPNs. It allows enterprises to create secure tunnels over the internet, enabling secure communication between remote sites without the need for expensive dedicated lines.

Pros:

  • High security with support for advanced encryption techniques.
  • Scalable, allowing organizations to expand their VPN infrastructure easily.
  • Cost-effective compared to MPLS for connecting remote locations.

Cons:

  • Limited to Cisco environments, making it less attractive for organizations using non-Cisco hardware.
  • Requires moderate expertise to configure and maintain.

 

4. Dynamic Multipoint Virtual Private Network (DMVPN)

Provided by: Enterprise

Complexity: High

Security: High

Cost: Moderate

Scalability: High

DMVPN is a Cisco-developed WAN technology that enables businesses to establish dynamic, encrypted VPN tunnels between multiple locations over the internet. Unlike traditional VPNs, where each connection is manually configured, DMVPN allows for the automatic creation of tunnels as needed, reducing the complexity of managing large-scale networks.

DMVPN is ideal for organizations with many remote locations, as it simplifies the process of connecting new sites and offers strong security through encryption. However, the complexity of DMVPN can make it difficult to manage, especially for smaller organizations without specialized network expertise.

Pros:

  • Supports dynamic, on-demand VPN tunnels.
  • Strong security through encryption.
  • Scalable for large, geographically dispersed networks.

Cons:

  • High complexity; requires expert knowledge for configuration and troubleshooting.
  • Primarily a Cisco-based technology, limiting flexibility in hardware choices.

 

5. Generic Routing Encapsulation (GRE)

Provided by: Enterprise

Complexity: Simple

Security: Very Low

Cost: Low

Scalability: Moderate

GRE is a tunneling protocol that allows businesses to encapsulate a wide variety of network layer protocols, making it useful for point-to-point connections. However, it lacks built-in encryption, meaning that it provides minimal security on its own. To secure GRE tunnels, businesses often need to pair it with additional protocols like IPsec.

Despite its limitations, GRE is a simple and cost-effective solution for organizations that need basic WAN connectivity between sites.

Pros:

  • Simple to configure and manage.
  • Low cost, making it attractive for smaller businesses.
  • Can encapsulate a wide variety of protocols.

Cons:

  • Very low inherent security.
  • Lacks advanced features such as QoS and traffic prioritization.
  • Best suited for basic, non-critical applications.

 

6. Metro Ethernet

Provided by: ISP

Complexity: Moderate

Security: Low

Cost: High

Scalability: Moderate

Metro Ethernet is a high-speed WAN technology provided by ISPs that connects different sites within a metropolitan area. It offers high bandwidth and low latency, making it ideal for businesses that need fast and reliable connectivity between offices located within the same city or region.

However, the inherent security of Metro Ethernet is relatively low, as it is a shared medium. Businesses looking to use this technology may need to invest in additional security measures, such as IPsec tunnels or firewalls.

Pros:

  • High-speed, low-latency connections.
  • Ideal for connecting offices within the same region.
  • Scalable for businesses with growing bandwidth needs.

Cons:

  • Higher cost due to reliance on ISP infrastructure.
  • Low inherent security; requires additional layers of protection.
  • Limited to metropolitan areas.

 

7. Frame Relay

Provided by: ISP

Complexity: Moderate

Security: Very Low

Cost: Low

Scalability: Low

Frame Relay is an older WAN technology that was once widely used for connecting remote sites over long distances. Although it has largely been replaced by newer technologies like MPLS and SD-WAN, some businesses still use Frame Relay due to its simplicity and low cost.

However, Frame Relay’s limitations in terms of security, scalability, and performance make it a less attractive option for modern enterprises. It is best suited for organizations with minimal security requirements and low data throughput needs.

Pros:

  • Low cost compared to more modern technologies.
  • Simple to manage and configure.
  • Still available in some regions for basic connectivity needs.

Cons:

  • Very low inherent security.
  • Limited scalability and performance.
  • Largely outdated and being phased out by ISPs.

 

8. IPsec Tunnels

Provided by: Enterprise

Complexity: Moderate

Security: Very High

Cost: Low

Scalability: Low

IPsec is a widely used protocol for securing data transmitted over the internet. It provides robust encryption, ensuring that data remains secure while traversing untrusted networks. IPsec tunnels are commonly used for site-to-site VPNs, enabling secure communication between remote offices and the central network.

While IPsec tunnels offer high security, they can be complex to configure, especially when dealing with multiple locations. They are also less scalable compared to technologies like MPLS or SD-WAN.

Pros:

  • Very high security through encryption.
  • Low cost for businesses that already have internet connections.
  • Ideal for secure site-to-site communication.

Cons:

  • Moderate complexity; requires expertise to configure and manage.
  • Limited scalability for large networks with many remote sites.
  • Can introduce latency due to encryption overhead.

 

9. Site-to-Site VPN

Provided by: Enterprise

Complexity: Moderate

Security: Very High

Cost: Low

Scalability: Low

Site-to-site VPNs are a common and cost-effective solution for connecting remote offices over the internet. Like IPsec tunnels, they provide strong encryption to secure data transmitted between sites, making them suitable for organizations with stringent security requirements.

However, site-to-site VPNs share the same scalability limitations as IPsec tunnels. They are best suited for organizations with a small number of remote locations or those looking for a temporary solution while transitioning to a more scalable WAN technology.

Pros:

  • Very high security through encryption.
  • Low cost and easy to set up for small networks.
  • Flexible and works over existing internet connections.

Cons:

  • Limited scalability for large networks.
  • Can introduce latency due to encryption overhead.
  • Requires moderate expertise to configure and manage.

 

Seamlessly manage WAN and SD-WAN technologies with OpManager Plus for peak performance

While choosing the right WAN technology is crucial, managing and monitoring the performance of these technologies is equally important for ensuring optimal network health, security, and efficiency. OpManager Plus offers comprehensive monitoring capabilities that can greatly enhance the management of your WAN infrastructure, regardless of the technology you choose.

Network Performance Monitoring: OpManager Plus provides real-time visibility into network performance across your WAN, allowing you to monitor bandwidth utilization, latency, and packet loss. This is particularly useful for MPLS, SD-WAN, and Metro Ethernet connections, where maintaining low latency and high reliability is critical for performance-sensitive applications.

Fault and Event Management: With its advanced fault detection and alarm correlation capabilities, OpManager Plus ensures that faults, alarms, and events are automatically detected and prioritized based on their severity. This helps IT teams avoid being overwhelmed by alerts and enables them to focus on resolving the most critical issues first.

WAN Link Monitoring: OpManager Plus continuously monitors WAN link health and performance, providing detailed reports on link availability and response times. This ensures that you can proactively manage issues such as link degradation or outages across technologies like MPLS, SD-WAN, and IPsec Tunnels.

SD-WAN Monitoring: OpManager Plus provides real-time monitoring of SD-WAN performance, tracking key metrics such as bandwidth utilization, latency, jitter, packet loss, and link availability. It helps ensure optimal application performance by intelligently routing traffic and detecting any network bottlenecks or performance issues across SD-WAN links.

Security and Compliance: For organizations using VPN-based WAN technologies like FlexVPN, DMVPN, and IPsec, OpManager Plus can track firewall policies, analyze VPN traffic, and provide insights into user behavior, helping to enhance security and compliance efforts. Its real-time log monitoring feature also aids in identifying anomalies and security threats.

Scalability and Flexibility: Whether you're managing a few remote offices or a large enterprise network, OpManager Plus scales to meet your needs, offering centralized management of all your WAN technologies. It integrates seamlessly with various network devices and WAN technologies, providing a unified platform for managing everything from traditional MPLS connections to more modern SD-WAN deployments.

With these capabilities, OpManager Plus ensures that your WAN technologies deliver the reliability, security, and performance your business needs while simplifying the complexities of managing a geographically dispersed network.

Conclusion

Choosing the right WAN technology for your enterprise is a critical decision that will impact the security, performance, and scalability of your network. While older technologies like Frame Relay and GRE are still available, they are often replaced by more secure and scalable options like MPLS, SD-WAN, and VPNs. For enterprises with a large number of remote locations, MPLS and SD-WAN are popular choices due to their scalability and performance. However, businesses that prioritize security and cost may prefer solutions like IPsec tunnels or site-to-site VPNs. Ultimately, the best WAN technology for your organization will depend on your specific needs, including budget, security requirements, and the number of remote sites you need to connect. By carefully evaluating each technology's characteristics, you can ensure that your enterprise WAN is optimized for reliability, security, and performance.

FAQs

1. What is the difference between MPLS and SD-WAN?

MPLS (Multiprotocol Label Switching) is a traditional WAN technology managed by ISPs that offers reliable, low-latency connections but comes at a high cost. SD-WAN (Software-Defined Wide Area Network) is a more modern solution that uses software to route traffic intelligently across various connection types (internet, MPLS, LTE). SD-WAN provides greater flexibility, scalability, and cost savings, especially for cloud-based and hybrid network environments.

2. How secure are WAN technologies?

The security of WAN technologies depends on the type used. MPLS offers moderate security, relying on the private nature of its network. SD-WAN, IPsec VPNs, and DMVPN offer higher security with encryption and segmentation. Additional security measures like firewalls and intrusion detection systems are often layered to enhance overall protection.

3. Which WAN technology is the most cost-effective for small to medium-sized enterprises (SMEs)?

SD-WAN and IPsec VPNs are generally the most cost-effective options for SMEs. SD-WAN allows businesses to combine less expensive internet connections with high security and performance, while IPsec VPNs offer secure site-to-site communication over existing internet connections at a lower cost.

4. How do WAN technologies support real-time applications like VoIP and video conferencing?

WAN technologies such as MPLS and SD-WAN provide support for real-time applications through Quality of Service (QoS) features. These features prioritize time-sensitive traffic like VoIP and video conferencing, ensuring low latency, minimal jitter, and reduced packet loss for a better user experience.

5. What is the role of a WAN in cloud computing?

WAN enables businesses to connect to cloud services across multiple remote locations, ensuring data accessibility and communication. SD-WAN, in particular, optimizes cloud traffic by selecting the best available paths and improving performance while maintaining security for cloud-based applications.

6. Can WAN technologies scale as my business grows?

Yes, WAN technologies like MPLS, SD-WAN, and DMVPN are designed to scale as businesses grow. They allow for easy integration of additional remote locations and users, ensuring that the WAN infrastructure can expand without compromising performance or security.

 

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