How to Choose Cross-Border Networking for Enterprises? A Comparison of MPLS and SD-WAN

Many enterprises, especially in traditional manufacturing, are expanding their businesses globally. These companies establish branches and production facilities worldwide to reduce costs and tap into overseas markets. But how can they build a cross-border network to streamline remote management?

What is Cross-Border Networking?

Cross-border networking refers to connecting network nodes across different countries and regions to form a unified, efficient, and secure network system. It acts as the enterprise's "nervous system," linking global branches to ensure fast information transmission and smooth business operations. A suitable cross-border networking solution helps enterprises break geographical barriers, improve communication efficiency, reduce operational costs, enhance data security, and gain a competitive edge in the international market.

Comparison of Mainstream Cross-Border Networking Solutions

Two leading solutions for cross-border networking are MPLS and SD-WAN, each with distinct advantages:

1. MPLS Dedicated Line

Multiprotocol Label Switching (MPLS) is a high-speed label-based transmission technology. In cross-border networking, it functions like an exclusive "highway" for enterprises, offering stable and fast data transmission. However, it has notable drawbacks:

• High Cost: The infrastructure investment is prohibitive for many SMEs.

• Lengthy Deployment: Setting up MPLS can take months or even half a year, incurring significant time costs.

• Low Flexibility: Adjusting the network, such as adding/removing branches or changing bandwidth, is difficult and expensive, making it hard to adapt to evolving needs.

2. SD-WAN Solution

Software-Defined Wide Area Network (SD-WAN), built on Software-Defined Networking (SDN) technology, is a modern WAN solution. It serves as an intelligent network commander, dynamically allocating resources based on business requirements and network conditions to enable efficient and stable cross-border connectivity. SD-WAN overcomes MPLS limitations:

• Cost-Effective: It drastically reduces infrastructure costs.

• Flexible & Fast Deployment: Ideal for enterprises needing rapid setup and agile network adjustments.
  Today, SD-WAN is the choice for most enterprises, gradually replacing traditional MPLS dedicated lines.

Case Study

A large manufacturing company with global production bases, R&D centers, and sales offices relied on MPLS for networking. As the business expanded, new branches increased, exposing MPLS’s flaws:

• High Costs: Exorbitant monthly lease fees became a financial burden.

• Complex Adjustments: Increasing bandwidth for a branch required lengthy negotiations with providers, adding time and expenses.

The company switched to SD-WAN and saw immediate improvements:

• Cost Control: Network expenses were significantly reduced.

• Simplified Management: SD-WAN’s centralized platform allowed IT teams to monitor and manage global networks in real time. Bandwidth adjustments were done with simple clicks on the platform, boosting efficiency and meeting the company’s fast-paced growth needs.

Conclusion

Whether choosing MPLS dedicated lines or the cost-effective, flexible SD-WAN, enterprises should align their choice with their unique business goals. Consult Ogcloud, a leading cross-border networking service provider, to get a tailored, one-stop solution for your global connectivity needs!