Time to read: 9 minutes 14 seconds | Updated: October 22, 2025

SD-WAN
What is SD-WAN?

A Software-defined Wide Area Network (SD-WAN) is the foundational component of Secure Access Service Edge (SASE), using a virtual WAN architecture to leverage any combination of transport services such as  Multiprotocol Label Switching (MPLS), LTE, and broadband internet services to securely connect branch users to applications hosted in the cloud or across hybrid IT environments.

Coworkers collaborating and talking at a desk.
What is SD-WAN?
04:02

Jump to
SD-WAN SASE diagram screenshot.

SD-WAN explained

Traditional architectures often use MPLS links to route traffic from branch offices to the data center. This architecture is costly, inflexible, and not optimized for the dynamic traffic patterns and application performance demands of cloud-centric organizations. The traditional model of backhauling traffic from branch offices to the data center for security inspection is no longer optimal as it adds latency, ultimately impairing application performance.  

SD WAN is a modern approach to connect branch locations to data centers and the cloud. It uses software to intelligently steer traffic across multiple connections like broadband, 5G, satellite or MPLS, reducing costs and MPLS dependency while providing flexibility. It assures consistent application performance and resiliency using several techniques such as tunnel bonding, best path selection, forward error correction, and WAN optimization. It automates traffic steering in an application-driven manner based on business intent, improves network security with built-in security capabilities, and simplifies WAN architecture.

SD-WAN architecture

A typical SD-WAN architecture includes three primary components: 

  • Edge devices: Physical or virtual appliances deployed at branch sites, data centers, and cloud locations that forward traffic based on policies and measure link health in real time. 
  • SD-WAN orchestrator: Provides cloud-hosted or on-premises configuration, policy, and monitor management across all SD-WAN nodes. The orchestrator simplifies operations by providing a single-pane-of-glass management interface. 
  • Transport layer: SD-WAN works across any IP-based transport such as broadband internet, LTE, 5G, or MPLS. This layer forms the underlay network, while SD-WAN creates an intelligent overlay network with dynamic path selection and failover. 

Advanced SD-WAN architectures may also include WAN optimization features (e.g., TCP acceleration and data deduplication), direct cloud connectivity, built-in security controls, and integration with SSE (Security Service Edge) platforms.

How does SD-WAN work?

Unlike SD-WAN, the conventional router-centric model distributes the control function across all devices in the network and simply routes traffic based on TCP/IP addresses and ACLs. This traditional model is rigid, complex, inefficient, not cloud-friendly, and results in poor user experience. 

SD-WAN works by continuously evaluating the performance of all available network links and intelligently routing traffic based on real-time conditions and business policies. For example, it can prioritize a VoIP call over a low-priority software update or steer sensitive data through a secure MPLS link while routing bulk traffic over broadband. 

The key mechanisms include: 

  • Application-aware routing: Identifies applications on the first packet and applies QoS (Quality of Service) rules to ensure performance and reliability. 
  • Dynamic path selection: Chooses the optimal path for each application flow based on link metrics like latency, jitter, and packet loss. 
  • Forward Error Correction: Enhances link quality by correcting packet loss and smoothing out performance issues over unreliable connections. 
  • Tunnel bonding: Combines multiple WAN links into a single logical connection to improve throughput and resilience. 

SD-WAN can operate using encrypted tunnels, typically IPsec, or adopt a tunnel-free, session-based architecture. This offers confidentiality and integrity even over public networks. Advanced secure SD-WAN also supports segmentation of traffic based on user, application, or device roles to prevent lateral movement and maintain security boundaries.

Why SD-WAN?

Times have changed, and enterprises are using the cloud and subscribing to software-as-a-service (SaaS). While users traditionally connected back to the corporate data center to access business applications, they are now better served by using many of those same applications in the cloud. 

As a result, the traditional WAN is no longer suitable mainly because backhauling all traffic—including that destined to the cloud—from branch offices to the headquarters introduces latency and impairs application performance. SD-WAN provides WAN simplification, lower costs, bandwidth efficiency, and a seamless on-ramp to the cloud with significant application performance especially for critical applications—without sacrificing security and data privacy. Better application performance improves business productivity, customer satisfaction, and ultimately profitability. Consistent security reduces business risk.

What are the benefits of SD-WAN?

  • Improved performance: Routes applications via optimal paths and eliminates backhauling to the data center. 
  • Enhanced security: Tightly integrates with SSE to form a SASE architecture, as many SD-WAN solutions include encryption, firewalls, and advanced security features. 
  • Cloud-centric: Optimizes and secures cloud access from branch locations. 
  • Cost savings: Reduces dependency on costly MPLS circuits by leveraging cheaper internet links. 
  • Simplified management: Eases network configuration and monitoring with centralized control.

Basic SD-WAN vs advanced secure SD-WAN

  • Not all SD-WANs are created equal: Many SD-WAN solutions are basic SD-WAN solutions or "just good enough" solutions. These solutions lack the intelligence, security, performance, and scale needed to ensure a secure network experience and build a robust SASE architecture. And remember, without a fast, secure, and high performing network, enterprise digital transformation and cybersecurity initiatives can stall.

Basic SD-WAN

Advanced secure SD-WAN

Consistent QoEx

X mark icon.
Check mark icon.

Built-in security

X mark icon.
Check mark icon.

Multi-cloud networking

X mark icon.
Check mark icon.

AI-driven

X mark icon.
Check mark icon.
  • Consistent Quality of Experience (QoEx). A key benefit of an advanced SD-WAN solution is the ability to actively use multiple forms of WAN transport simultaneously. A basic solution can direct traffic on an application basis down a single path, and if that path fails or is underperforming, it can dynamically redirect to a better performing link. However, with many basic solutions, failover times around outages are measured in tens of seconds or longer, often resulting in annoying application interruption. A business-driven SD-WAN intelligently monitors and manages all underlay transport services. It can overcome the challenges of packet loss, latency and jitter to deliver the highest levels of application performance and QoEx to users, even when WAN transport services are impaired. Unlike a basic SD-WAN, an advanced SD-WAN handles a total transport outage seamlessly and provides sub-second failover that averts interrupting business-critical applications such as voice and video communications. It continuously adapts to changes in the network, automatically adapting in real time to any changes that could impact application performance, including network congestion, brownouts and transport outage conditions.
  • Built-in security. An advanced secure SD-WAN includes a next-generation firewall to efficiently secure branch locations. Key capabilities include intrusion detection and prevention (IDS/IPS) and end-to-end segmentation. Other advanced secure SD-WANs can protect organizations against DDoS attacks and provide URL filtering. The integration of a next-generation firewall enables organizations to easily replace legacy branch firewalls, reducing the hardware footprint. Additionally, security policies are centrally managed eliminating the need to have IT trained personnel locally and avoiding misconfigurations. Additionally, while basic SD-WANs provide the equivalent of a VPN service, an advanced secure SD-WAN offers more comprehensive, end-to-end role-based segmentation. By adding user and device identity and role-based policy, advanced secure SD-WANs are able to provide fine-grained segmentation and enforce zero trust. Based on the principle of least privilege access, it ensures that users and IoT devices only communicate with destinations consistent with their role in the business, while reducing unauthorized access and limiting the scope of incidents. 
  • Multi-cloud networking. Advanced SD-WANs can be deployed in a public cloud such as AWS, Azure and Google Cloud to optimize connections between branch locations and the cloud using all the SD-WAN benefits. If a brownout or blackout occurs, the remaining link(s) continue to carry traffic so that users don’t notice any disruption to voice calls, audio and video conferences, or any other application. Ruggedized first mile between the branch and the public cloud delivers better network performance, reliability, and quality. 
  • AI-Driven Advanced SD-WANs include AI capabilities to improve visibility into connected users and devices. AI also gives organizations insights into network traffic and security to proactively troubleshoot activities and diagnose network issues. AI-driven SD-WAN is designed to listen, understand, and respond to natural language queries, making it easier for IT teams to get the insights they need.

Advanced SD-WAN functionality for SASE

SASE combines SD-WAN with Security Service Edge (SSE). Key SSE capabilities include ZTNA (Zero Trust Network Access), SWG (Secure Web Gateway) and CASB (Cloud Access Security Broker). 

Ultimately, the purpose of SASE is to provide security and performance to cloud-centric organizations and hybrid work environments, for secure access to applications and sensitive data from any location, while protecting users from web-based threats. Experience with many enterprises that have designed and deployed their SASE architectures indicates that basic SD-WAN functionality falls short. A secure SD-WAN with advanced networking and security capabilities is required to fully enable SASE: 

  • Seamlessly integrate to an SSE solution to form a unified, consistent SASE architecture or a single-vendor SASE solution. 
  • Fully automate orchestration between the SD-WAN and SSE
  • Ensure the right level of access and a consistent experience across various locations with centralized network and security policy management.
  • Identify application traffic on the first packet and granularly steer it to an SSE solution based on predefined security policies  
  • Automatically failover to a secondary cloud security enforcement point to avoid application interruption 
  • Automatically reconfigure secure connections to cloud security enforcement points if a newer, closer location to the branch becomes available 
  • Monitor tunnels to SSE to ensure tunnel health, automatically trigger failover for high availability, and maintain consistent application performance.

HPE Networking and SD-WAN

The HPE Networking SD-WAN offering is a comprehensive portfolio of access deployment options to connect enterprise organizations across locations, data centers, cloud, and SaaS. The solution includes various deployment models, or "on-ramps," to the SD-WAN fabric. This delivers seamless, secure, high-performance network connectivity from headquarters, data center, campus, branch, small office, work-from-home, and mobile users to reach applications, data, and services anywhere. 

  • HPE Aruba Networking EdgeConnect SD-WAN allows IT Admins to architect an advanced secure SD-WAN edge that continuously learns and adapts to changing business needs and delivers advanced security features with a built-in next-generation firewall.
  • HPE Aruba Networking EdgeConnect SD-Branch allows IT Admins to consolidate branch networking components for maximum integration across WLAN, LAN, and SD-WAN with integrated security and onboard LTE support with centralized cloud management. 
  • HPE Aruba Networking EdgeConnect Microbranch uses a range of HPE Aruba Networking remote access points (RAPs) to enable secure WAN connectivity to the corporate enterprise network and is ideal for small office or work-from-home sites.
  • HPE Juniper Networking Session Smart Router provides a session-centric approach, with granular session-level performance. Its unique tunnel-free architecture provides a direct path for sessions, which not only enhances application performance and reduces latency, but also simplifies network operations.

HPE Networking SD-WANs offer a comprehensive solution that addresses modern connectivity and security challenges across distributed enterprises. It enhances performance and reduces costs through tunnel bonding, Business Intent Overlays, path conditioning, and WAN optimization techniques. These features ensure reliable, high-quality application performance over hybrid WAN links like MPLS, broadband, and 5G.  

For cloud-driven environments, it intelligently routes application traffic directly to cloud providers such as Amazon Web Services, Microsoft Azure, Oracle Cloud, and Google Cloud, improving efficiency and user experience.  

Security is built-in, with next-generation firewall capabilities, IDS/IPS, Adaptive DDoS protection, and role-based segmentation—all centrally managed. The integration of Secure Web Gateway (SWG) extends protection against web-based threats to unmanaged devices without requiring agents. IoT security is also strengthened through HPE Aruba Networking ClearPass integration, enabling dynamic segmentation based on identity and role.  

As a foundation for SASE, the solution tightly integrates with HPE Aruba Networking SSE, a cloud-native SSE solution that supports ZTNA, SWG, CASB and other security features, or integrates with multiple third-party SSE to integrate into existing security ecosystems.

Finally, AIOps enhances network intelligence by automating configuration and troubleshooting activities. AIOps significantly improves resolution times using natural language queries, by leveraging generative AI and large language models (LLMs), through actionable recommendations, ensuring that the network continues to work at peak levels.

SD-WAN FAQs

Are all SD-WAN solutions the same?

Not all SD-WAN solutions are the same. Basic SD-WANs often provide poor integration with SSE services, limiting their role in a full SASE architecture, while advanced SD-WANs offer multiple integrations with SSE vendors or even support a single-vendor SASE approach. Some SD-WANs emphasize performance with advanced networking and security capabilities, while others focus on integration with wired and wireless networking. Finally, some SD-WANs use a tunnel-free model with session-smart forwarding while others rely on IPsec tunnels—each suited to different use cases.

What is an AI-driven SD-WAN?

An AI-driven SD-WAN brings AI-powered insights, anomaly detection, and automated troubleshooting to the SD-WAN. It enables IT administrators to deliver better network experiences to their end users with minimal operational burden on the IT staff. It correlates SD-WAN performance with wireless and wired network performance. In this way, complete insight and visibility is provided, from edge to cloud.

What should I look for when choosing an SD-WAN solution?

When choosing an SD-WAN solution, prioritize options that support single-vendor SASE architecture or integration with multiple SSE vendors. Look for features like tunnel bonding, FEC, and WAN optimization for reliable application delivery. Evaluate security capabilities, including next-generation firewall, IDS/IPS, DDoS defense, and microsegmentation. Ensure cloud integration with providers like Amazon Web Services, Microsoft Azure, or Google Cloud. Finally, check for AI-powered analytics and AIOps for automated troubleshooting and optimization.

Can SD-WAN improve network performance?

SD-WAN can significantly improve network performance. Advanced SD-WANs use techniques such as Forward Error Correction (FEC) to recover lost packets, tunnel bonding to combine multiple links for higher throughput, best path selection to steer traffic across the optimal route, and WAN optimization with compression algorithms to reduce bandwidth consumption. SD-WAN continuously monitors network conditions and automatically provides an alternate path in case of failover, ensuring reliable application performance and a consistent user experience.

SD-WAN vs MPLS: What's the difference?

MPLS was once the gold standard for reliable connectivity, but it struggles with today’s cloud-first needs due to high costs, rigidity, bandwidth limits, and backhauling bottlenecks. SD-WAN virtualizes multiple links (MPLS, broadband, 5G), boosting bandwidth and reliability. Unlike MPLS, it encrypts all traffic with IPsec, supports direct cloud breakout for SaaS, and integrates in a SASE architecture. Advanced SD-WAN can seamlessly replace MPLS with broadband while improving performance, lowering costs, and simplifying branch operations through centralized orchestration. This also enables organizations to quickly establish new branch locations while keeping infrastructure costs low.

What are the security features of SD-WAN?

Some advanced secure SD-WANs include built-in next-generation firewall capabilities, including IDS/IPS, DDoS defense and micro-segmentation. By integrating these security functions, it not only improves network performance and protection but also simplifies branch deployments. A secure SD-WAN can replace branch firewalls in addition to routers, consolidating branch equipment and reducing complexity while ensuring a consistent, secure user experience across all locations.

Related products, solutions or services

Unified SASE

HPE Aruba Networking SSE

HPE Aruba Networking EdgeConnect SD-WAN

Related topics

Secure SD‑WAN

SASE

SSE (Security Service Edge)

SD-Branch

Zero Trust

Multi-cloud Networking