SD-WAN Cost Guide 2025: Pricing, Savings & MPLS Comparison
Complete breakdown of SD-WAN costs, pricing models, and how to calculate your potential savings versus traditional MPLS.
SD-WAN Costs: Quick Summary
SD-WAN costs $100-$500 per site monthly depending on features and deployment model. Compared to MPLS, organizations typically save 50-84% on WAN costs. ROI is achieved within 12-24 months for most deployments.
Key Takeaways:
- Basic SD-WAN: $100-$300/site/month | Premium: $500-$1,000+
- One-time hardware: $1,500-$12,000 per site
- Managed services add $125-$375/site/month
- SD-WAN vs MPLS: 50-84% cost savings typical
- ROI timeline: 12-24 months for most organizations
- Best for: Organizations with 20+ sites and $5M+ WAN spend
Software-Defined Wide Area Networking (SD-WAN) has become essential infrastructure for enterprises managing distributed networks. But how much does SD-WAN actually cost? And more importantly, how do those costs compare to traditional MPLS circuits?
This guide breaks down SD-WAN pricing for 2025, including per-site costs, deployment models, and real-world savings expectations. Whether you're evaluating a complete MPLS replacement or a hybrid approach, understanding the true cost of SD-WAN is critical for your telecom cost optimization strategy.
SD-WAN Cost Overview: What You'll Pay in 2025
Monthly Per-Site Costs
- Basic SD-WAN$100-$300/site
- Premium (w/ security)$500-$1,000+/site
- Enterprise volume$75-$150/site
- + Managed services+$125-$375/site
One-Time Hardware Costs
- Small office device$500-$2,000
- Branch office device$1,500-$5,000
- High-capacity edge$5,000-$12,000
- Hardware cost trend-15%/year
Pricing Varies Significantly
At equivalent bandwidth (2Gbps), SD-WAN pricing can vary by 2.5x between vendors—from $496 to $1,256 monthly. Always compare at least 3 vendors and negotiate based on your total site count.
SD-WAN vs MPLS: Cost Comparison
The primary driver for SD-WAN adoption is cost savings versus traditional MPLS circuits. Here's how the economics compare:
| Cost Factor | MPLS | SD-WAN | Savings |
|---|---|---|---|
| Monthly per-site cost | $300-$1,000+ | $100-$300 | 50-70% |
| Bandwidth cost per Mbps | $15-$50/Mbps | $1-$5/Mbps | 90%+ |
| Provisioning time | 30-90 days | Days to weeks | Faster |
| Contract flexibility | 2-3 year minimum | Month-to-month available | More flexible |
Typical SD-WAN Savings vs MPLS
Key Factors That Affect SD-WAN Cost
1. Number of Sites
Volume discounts kick in around 20+ sites, with significant savings at 50+ and 100+ site deployments. Enterprise agreements can reduce per-site costs by 30-50% compared to list pricing. Organizations with fewer sites may find the savings threshold harder to reach.
2. Bandwidth Requirements
Higher bandwidth needs drive up costs for both hardware and service tiers. A 100 Mbps site costs significantly less than a 1 Gbps site. However, SD-WAN's ability to aggregate multiple inexpensive broadband links often provides more bandwidth at lower cost than upgrading MPLS circuits.
3. Security Features (SASE)
Basic SD-WAN provides routing and optimization. Adding integrated security (firewall, CASB, ZTNA) through SASE can double or triple costs but eliminates the need for separate security appliances at each site. Evaluate your existing security stack before choosing a tier.
4. Deployment Model
DIY
Lowest monthly cost
Requires internal expertise and 24/7 operations capability
Co-Managed
+$75-$200/site
Balance of control and support; most popular for mid-market
Fully Managed
+$125-$375/site
Complete outsourcing with 24/7 NOC; best for lean IT teams
SD-WAN Total Cost of Ownership: Example Calculation
Typical Scenario:
Enterprise with 50 sites, mixed bandwidth requirements, currently spending $600/site on MPLS
| Cost Component | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Hardware (50 sites @ $3K avg) | $150,000 | $0 | $0 |
| SD-WAN service ($200/site/mo) | $120,000 | $120,000 | $120,000 |
| Managed services ($150/site/mo) | $90,000 | $90,000 | $90,000 |
| Implementation & training | $25,000 | $0 | $0 |
| Total SD-WAN Cost | $385,000 | $210,000 | $210,000 |
| Current MPLS cost ($600/site/mo) | $360,000 | $360,000 | $360,000 |
| Annual Savings | -$25,000 | +$150,000 | +$150,000 |
3-Year TCO Summary
Total SD-WAN cost: $805,000 | Total MPLS cost: $1,080,000
Net savings: $275,000 (25% reduction)
Plus: 5-10x bandwidth increase and improved application performance
When Does SD-WAN Make Financial Sense?
SD-WAN is a Good Fit When:
- +You have 20+ sites with significant MPLS spend
- +Bandwidth demands are growing faster than budget
- +You need faster site deployment (weeks vs months)
- +Cloud and SaaS adoption is increasing
- +Current MPLS contracts are expiring soon
Consider Carefully When:
- !You have fewer than 20 sites (savings threshold)
- !MPLS contracts have significant early termination fees
- !Regulatory requirements mandate private circuits
- !Broadband quality is poor at critical locations
- !You lack expertise and can't afford managed services
Managing Your Overall Telecom Costs
SD-WAN is just one component of enterprise telecom spend. For comprehensive cost optimization across voice, data, mobile, and cloud services, consider a holistic telecom expense management approach.
Our team specializes in helping enterprises navigate the complexity of telecom contracts, including SD-WAN vendor selection and contract negotiation. We've helped clients achieve 33% average cost reduction across their entire telecom portfolio.
Calculate Your Potential SavingsFrequently Asked Questions About SD-WAN Costs
Frequently Asked Questions
Need Help Evaluating SD-WAN Options?
Our telecom experts can analyze your current WAN costs, evaluate SD-WAN vendors, and build a business case for migration. We provide vendor-neutral recommendations based on your specific requirements.