MPLS and DIA – Should I stay, or should I go?

Research shows that enterprises are moving away from MPLS (multi-protocol label switching) as they adopt SD-WAN models based on internet connectivity. But that doesn't mean it's the end of MPLS. At least not yet.

There are still many companies relying on it, either fully or for selected use cases – such as for routing sensitive applications or in regions where local restrictions apply. (Although we may argue internet-based solutions are fully capable of meeting those needs).

Truth is, there’s plenty of room for both MPLS and internet-based WANs, specifically Dedicated Internet Access (DIA) for the purpose of this article – to live alongside each other. In this article, we’ll see why.

The cost factor

We knew you would ask, so we brought it up first. While exact costs will vary widely, depending on geography, provider, bandwidth, and a bunch of other factors, it’s almost guaranteed that MPLS will always be more expensive than DIA, due to MPLS’ premium SLAs and private infrastructure.

But not every site or application requires MPLS-grade SLAs, hence why many enterprises chose to move to a dedicated circuit, and even broadband, quickly achieving considerable cost savings without compromising performance.

Balancing performance

Traditionally, MPLS has been known for its reliability, minimal jitter, and near-zero packet loss due to its private and well-controlled network paths. It’s no wonder companies have been hesitant to move away.

And while DIA provides a private connection between the ISP and the customer, it still taps into the public internet, which can add variability in latency or packet loss. Sounds like a deal-breaker? It’s not. 

Modern SD-WAN and middle-mile solutions can now effectively and easily mitigate these issues by dynamically optimizing traffic routes. 

DIA is no longer a second choice — it’s a competitive, reliable alternative.

Business-grade SLAs

It’s a close match. When it comes to uptime, MPLS providers offer 99.99%+ uptime, hence its use for mission-critical workloads. However, DIA is close behind with a 99.9-99.99%. To guarantee performance, MPLS providers will always include latency, jitter, and packet loss guarantees, while not all DIA providers will (it is worth noting that GNX is not at all like all DIA providers).

In the end, what matters is your actual experience. You can have the best SLAs on paper, but all that matters in the end is for your connection to be up – and to be resolved as quickly as possible when it is not. 

Ensure your contract includes monitoring and support packages, with agreed-upon response times in case of failure.

Note: With broadband, SLAs are much harder to meet, even when on paper.

Scalability at pace

What in our tech-driven world ever stays in one place? MPLS. Ok, jokes aside, that’s not entirely true. But provisioning new sites or upgrading the bandwidth in your MPLS infrastructure can take weeks or even months, depending on your providers’ managed circuits.

On the other hand, DIA offers rapid scaling. Bandwidth upgrades and new site connections are faster, easier, and much more cost-effective to provision, which is ideal for fast-paced organizations or those with seasonal requirements (e.g. retail).

Application-specific performance

This is when it gets personal. What are you trying to connect? For years, MPLS has been the usual suspect for real-time, latency-sensitive, and mission-critical applications like ERP, financial trading platforms, or legacy systems. And it is great for those use cases. However, its performance can perfectly compete with that offered by more flexible, private point-to-point ethernet solutions. 

It’s worth knowing your options.

On the other hand, DIA has proven to be successful for bandwidth-heavy and cloud-first applications like Office 365, AWS, and SaaS platforms – and it is best mates with SD-WAN, as well as with modern enterprises relying on any type of collaboration tools (meaning, every organization).

The leap forward: should you stay, or should you go?

The debate is still on whether enterprises can live without MPLS. According to McKinsey, Governments, banks, and other organizations that operate highly critical networks where security is at a premium will continue to require a hybrid of MPLS and SD-WAN.

On the other hand, DIA is the modern-day answer for a global enterprise adopting modern applications. It offers a high-quality link, strong SLAs, and superior scalability to support heavy-bandwidth applications hosted in SaaS clouds. Matched with SD-WAN & SASE, it adds flexibility and the security layer your CISO is asking for.

Unsure where to go next? Talk to one of our connectivity experts. With a technology- and carrier-neutral approach, we’ll be happy to look at your specific requirements and design the solution that meets your short- and long-term goals.