Tony made an interesting point about the inclusion of SD-WAN within Gartner’s Magic Quadrant for WAN optimization controllers. It was a point that could help unlock overlooked expenditures in IT budgets.

“We believe WAN requirements are evolving rapidly as enterprises become more frustrated with the high cost and complexity of MPLS networking. There just hasn’t been an ability, until now, to easily leverage lower-cost Internet in a secure, controlled and optimized manner.”

But how much can you really save with an SD-WAN? Well, consider this: on average, IT spent 9 percent of its budget on the data network last year, and more than three-quarters of that expenditure went to transmission and personnel. SD-WAN addresses both problems.

Internet bandwidth continues to be a fraction of MPLS costs. A 10 Mbps MPLS port in New York costs $608 per month; a 150 Mbps FiOS connection runs $160. To put that another way, FiOS is about $1 per megabit; MPLS is just over $60 per megabit. Network engineers have been limited in taking advantage of those economics because of the availability, security, and performance issues of the Internet — issues addressed by Silver Peak…..

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