What is SD-WAN? Meaning, Benefits & How It Works
SHARE
It replaces manual routing and expensive legacy architecture with intelligent software that makes real-time decisions based on performance, security and business policies.
SD-WAN simplifies network management, accelerates cloud adoption and reduces costs by directing traffic dynamically across any mix of broadband, mobile or private links. It’s an essential building block for businesses looking to move fast, stay secure and scale globally.
Why SD-WAN Was Created
Traditional Wide Area Networks (WANs) were designed for a time when traffic flowed through centralized data centers. Today, enterprise traffic is cloud-first, user-distributed and performance-sensitive.
Legacy WANs, built on fixed hardware and MPLS circuits, struggle to scale and adapt to the needs of networks today. Manual configuration, limited visibility and high costs present real challenges to support hybrid and remote workforces, global operations and dynamic cloud workloads.
That’s where SD-WAN comes in. It simplifies complex environments by centralizing control and enabling automation to the network edge. It connects distributed users to cloud apps without performance tradeoffs.
How SD-WAN Works
SD-WAN intelligently manages traffic across multiple network paths using centralized policies and real-time performance data. Here’s how it works:
- Edge devices at each location send and receive traffic through secure tunnels
- A centralized controller manages policies and routing decisions, ensuring consistency across the network footprint
- Traffic is directed based on network traffic patterns related to application type, latency, jitter and packet loss, for the fastest, most reliable data delivery. Connectivity can span MPLS, broadband, LTE or satellite, with the system dynamically selecting the best path
With this setup, SD-WAN enables consistent performance for critical applications, faster cloud access and end-to-end encryption that are all managed from a single interface.
SD-WAN in Action
These real-world use cases demonstrate how SD-WAN helps industries improve network performance and reduce capital expenses across their networks:
- Retail brands with cloud-based POS systems use SD-WAN to connect hundreds of locations and logistical operations, both online and brick and mortar, to centrally manage data delivery and improve customer experience
- Manufacturers use SD-WAN to stream IoT sensor data across global facilities, ensuring reliable throughput and network resilience at the edge
- Financial services providers rely on SD-WAN for low-latency, high-security connectivity to support real-time transactions, trading and compliance
- Remote and hybrid workforces get secure, uninterrupted access to SaaS platforms without relying on backhauled traffic through data centers
- Post-merger integration teams unify networks quickly across newly acquired branches without re-architecting everything
SD-WAN vs. Traditional WAN
Traditional Wide Area Networking (WAN) has powered enterprise connectivity for decades, providing dependable, secure connections through dedicated infrastructure. GTT also offers enterprise-grade WAN solutions that meet the needs of many global businesses.
As applications move to the cloud and operations demand more agility, Managed SD-WAN from GTT offers a flexible, software-defined evolution of WAN technology, enabling enterprises faster responses to change and manage networks with greater ease and a common performance experience across distributed environments.
The table below offers a high-level comparison, not to say one is better than the other, but to help you identify which solution best fits your current and future networking needs.
| Traditional WAN | SD-WAN | |
|---|---|---|
| Traffic Routing | Dynamic, software-defined | Dynamic, software-defined |
| Network Visibility | Limited and location-based | Centralized and real-time |
| Security | Add-on firewalls | Built-in encryption and segmentation |
| Cloud Optimization | Indirect routing, higher latency | Direct cloud access, lower latency |
| Deployment Speed | Hardware-heavy, slower to scale | Software-based, scalable in days |
| Cost Efficiency | Dependent on older technologies like MPLS, high OPEX | Hybrid connectivity, reduced operational cost |
Benefits of SD-WAN
SD-WAN helps enterprises accelerate digital transformation through intelligent, automated networking:
- Agility: Quickly deploy and manage new branches, apps and users without complex infrastructure
- Performance: Deliver consistent user experience for real-time apps like voice, video and collaboration tools
- Security: Protect users and data with encrypted tunnels, policy-based segmentation and integrated threat detection
- Cost Efficiency: Use lower-cost connectivity without compromising on performance or security
- Cloud Optimization: Enable fast, direct access to SaaS and cloud services while staying in policy
Why GTT for SD-WAN?
GTT provides SD-WAN as a fully managed service delivered on our Tier 1 global IP backbone. Customers benefit from:
- Seamless global reach with edge-to-cloud performance
- Integrated security through Secure Access Service Edge (SASE)
- EnvisionEDGE: One Box, 16 Configurations
- Visibility, control and analytics with GTT EnvisionDX
- 24/7 support and lifecycle management by expert teams
We simplify complex networks, secure critical applications and empower enterprises to move faster, with confidence.
Let’s Envision Greater Technology Together
What does SD-WAN stand for?
Software-Defined Wide Area Networking (SD-WAN) is a virtualized network overlay that uses software to manage and optimize connectivity across multiple locations, networks and clouds.
How is SD-WAN different from MPLS?
Older technologies, like MPLS rely on private circuits and static routing, while SD-WAN dynamically routes traffic across any connection based on real-time performance and policy. SD-WAN also adds centralized control, visibility and built-in security, making it more scalable and cloud-friendly.
Is SD-WAN secure?
Does SD-WAN improve cloud performance?
Absolutely. SD-WAN enables direct, optimized access to SaaS platforms and cloud services without backhauling traffic through data centers. This reduces latency, improves reliability and enhances user experience, especially for remote teams.
Can SD-WAN reduce networking costs?
Yes. SD-WAN helps reduce reliance on costly MPLS circuits by supporting lower-cost broadband and LTE connections. It also cuts operational costs by simplifying network management through centralized control and automation, reducing the need for truck rolls and on-site updates.
Who manages SD-WAN?
SD-WAN can be managed in-house or by a trusted provider like GTT. With Managed SD-WAN from GTT, customers benefit from expert design, deployment, support and optimization so they can focus on business goals.
Learn more about how GTT can help support your business collaboration, mobility and growth
Global WAN Services