Updated November 2026
The short version
- MPLS is a private network on predetermined paths, known for reliability.
- SD-WAN is software that steers traffic across several connections, including MPLS circuits if you keep them.
- Cisco notes that most companies are in a hybrid state, using both where each makes sense.
What is MPLS?
MPLS (Multiprotocol Label Switching) moves data along predetermined paths across a carrier's private network. Businesses install physical MPLS circuits at each site they want to connect, such as a branch office and a data center. It has been in use for over two decades and is known for reliability and performance.
The tradeoffs are cost and flexibility. MPLS is considered relatively costly and may not be available everywhere, and each new site needs its own circuit.
What is SD-WAN?
SD-WAN (software-defined wide area network) is software that links your offices and internet connections into one network. It checks how each connection is performing and sends traffic over the path that is working best, so calls, video meetings and cloud apps stay responsive.
SD-WAN can use a mix of connections, such as MPLS circuits, business internet and LTE or 5G, and prioritize the traffic that matters most. If one connection has a problem, traffic moves to another.
Key differences at a glance
- How sites connect
- MPLS: Private circuits from a carrier
- SD-WAN: Any mix of connections, managed in software
- Traffic paths
- MPLS: Predetermined
- SD-WAN: Chosen based on how each connection is performing
- Cloud apps
- MPLS: Traffic often routes through a central site first
- SD-WAN: Can go to the internet directly from each site
- Failover
- MPLS: Depends on how the circuits are designed
- SD-WAN: Moves traffic to another connection if one has a problem
- Adding a site
- MPLS: Order and install a new circuit
- SD-WAN: Extend the network over the connections at that site
- Security
- MPLS: Private network, separate from the internet
- SD-WAN: Encrypted, and usually paired with a firewall or SASE
Which is right for your business?
Keeping MPLS may make sense if
- Compliance or security rules require a private network
- Critical apps need fixed, predictable paths
- You still have time left on an MPLS contract
SD-WAN is worth a look if
- Your team relies on cloud apps
- You are adding or moving locations
- You want failover across more than one connection
- MPLS cost is hard to justify for every site
It does not have to be one or the other. Cisco notes that organizations in industries such as defense or healthcare may keep MPLS for compliance and security reasons, and that most companies use MPLS and SD-WAN where each makes the most sense. Because SD-WAN can include MPLS circuits as one of its connections, you can move sites over at your own pace.
If you need a private link between sites
Some businesses want a private connection between two locations without a full MPLS network. 5x5 offers Business Ethernet transport, a private, direct link between two of your locations, and dedicated fiber capacity between your locations.
SD-WAN depends on the connections underneath
SD-WAN is only as good as the connections it runs on. 5x5 offers dedicated internet access, dedicated fiber, fixed wireless, and 5G and 4G LTE. Fixed wireless is a primary enterprise internet option with built-in redundancy and the same SLA as our fiber service, and 5G and 4G LTE can serve as a primary or backup connection.
For SLA-backed services, we commit to at least 99.999% network availability, subject to the SLA. Standard installation takes days, not weeks or months.
How 5x5 Telecom can help
5x5 Telecom designs, installs and manages SD-WAN and provides the connections underneath it, so one team is responsible for performance end to end. Tell us how your locations connect today, including any MPLS circuits, and we will recommend a setup that fits.
We monitor the network and handle changes, and our 24/7 US-based support team answers every ticket within 60 minutes.