Thursday, October 18, 2018

Purchase More Bandwidth vs. Implementing SD-WAN

It seems that perhaps as a response to the proliferation of SD-WAN solutions that ISP's have substantially reduced their price or started offering substantially more bandwidth for the same price as what one is currently paying. Have other people noticed this?

I bring this up because in getting pricing for a variety of different SD-WAN solutions the cost savings seems to be almost entirely on the basis that one can cancel/reduce the expensive bandwidth (MPLS, DIA etc) and replace it with inexpensive bandwidth such as cable/DSL. In addition you will supposedly get better or the same overall performance through bonding/load balancing as you would with the more expensive options.

However, in some recent price quotes I have obtained for both DIA connections and SD-WAN solutions I have noticed that when you compare what some ISP's pricing options are to the SD-WAN hardware and ongoing subscription fees, one doesn't appear to be saving much money. In some instances it might actually be more costly to go with an SD-WAN solution.

Aside from this, the SD-WAN solutions seem to always be licensed by throughput. In a few different vendor quotes that I have seen 100Mbps might be around a $2,000-$3,000 annual license/subscription fee. For that amount of money, is it even a better return on one's investment than simply purchasing or increasing the speed on an MPLS/DIA circuit? I think it is reasonable to ask that question especially considering one would have substantially more bandwidth that 100Mbps in many cases.

I have seen quotes recently for 100Mbps DIA for as low as around $500/month. One could pair that with a broadband connection of 300Mbps/20Mbps for around $250/month. That would seem to be a pretty good or arguably better value than an SD-WAN option that is capped at 100Mbps

What does everyone else think?



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