Why are operators optimistic about SDN-WAN?

The advantages of SD-WAN include the ability to significantly reduce WAN costs and increase bandwidth and efficiency between branch networks and data centers. SD-WAN portrays new revenue models for next-generation technologies for operators.

Operators often rely on the partner's circuits and infrastructure to provide end-to-end services to the enterprise, and profits are eroded by these third-party vendors. With SDN-WAN, operators can use existing profitable underlying circuit technologies such as third-party MPLS circuits, broadband Internet, and even LTE/4G technologies to deliver WAN services to enterprises.

With SD-WAN, operators can provide application-based SLAs because SD-WAN can provide application-level visualization to monitor path-based network-level SLAs and proactively make changes to the network when problems are encountered. With SD-WAN, operators can promote the sale of multiple Layer 3 VPNs (for isolation) to customers and provide isolated and end-to-end network encryption for enterprises.

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