Operational costs and risks behind investments are top of mind for many IT leaders and senior management. Are you looking for ways to improve cost control, avoidance, or reduction? A well-matched SD-WAN solution may be just what you need, but… how does it actually work and what should you consider first in your strategy for achieving greater financial flexibility?
For many businesses and organizations, digital transformation programs have introduced a myriad of new services and applications. It’s best reflected in the post-pandemic world – with the rapid disruption and displacement of the workforce globally, users have come to expect high-quality experiences when utilizing applications like Zoom, Teams or Salesforce. On the other hand, IT departments must cope with increasing bandwidth requirements, and by “bandwidth requirements” we mean, of course, costs.
Let’s admit it: legacy networks just aren’t cutting it when it comes to accessing applications in the cloud, as evidenced by big bills with old MPLS connections. Expectations for maintaining business continuity by providing applications to employees and customers, no matter where they're located, securely, but with limited IT resources, may sound like an impossible task. It would seem that in order for the digital transformation to be successful, networks must also transform. That’s where an SD-WAN comes into play.
How does SD-WAN reduce connectivity costs?
WAN transport technologies like MPLS, broadband, VPN, and newer 5G/LTE that you may be using today, provide the basic bandwidth that delivers applications to your users. This is done by interconnecting your campus, branch, and data center networks, or end-users directly, over a wide area. But delivering business continuity and consistent experience in today's world requires more than just expensive bandwidth.
An SD-WAN can better connect users to applications in the cloud for a better overall experience. Rather than linking back to a data center, an SD-WAN allows users to directly connect to where their applications reside. An SD-WAN is more economical, faster and more scalable too. The efficiencies are significant: up to 30% in connectivity costs, compared to legacy MPLS.
Ok, but how does SD-WAN fit with my organization's financial picture?
SD-WAN can be a game-changer for the digital transformation efforts, but not all SD-WAN solutions on the market are the same. As organizations undertake fiscal planning for IT purchases, they should give thought to how SD-WAN will improve revenue and productivity, net revenue retention, or other financial metrics. It’s important to consider how you will implement SD-WAN within your environment.
Here are some considerations that may help you outline your network modernization plan:
- does my organization need to better control the costs of network services, branches, or both?
- do branches require an infrastructure refresh to meet business objectives?
- does my organization have the tools it needs to make evidence-based decisions about network change?
- what unique application or infrastructure needs do small branches and other points of presence have?
Additionally, it’s prudent to evaluate SD-WAN solutions based on the offered purchasing model. Let’s consider application-based licensing and SD-WAN as a Service:
- application-based licensing – this on-premises SD-WAN option demands you to purchase hardware and a license for said hardware. Deployment requires upfront CAPEX, the wait for shipping and installation, then configuration (which must be done on-premises).
- SD-WAN as a Service – a cloud-based alternative that accelerates deployment, offers minimal upfront investment and predictable monthly billing (turning a capital expense to an operational expense).
There are certain pros and cons to CAPEX and OPEX purchasing models. However, large-scale CAPEX investments can impose significant costs, tying up financial resources over a multi-year period. On the other hand, many organizations benefit from the predictable costs and lower financial risks of a monthly subscription. SD-WAN as a service can provide the benefits of SD-WAN without the typical financial risks. When paired with flexible subscription terms and inclusive support and service, SD-WAN as a pure OPEX cost can offer even more value, with even fewer risks.
ExtremeCloud SD-WAN: a flexible solution for your connectivity needs and IT budget
Stuck paying exorbitant prices for legacy connectivity? Bound to an inflexible contract? With ExtremeCloud SD-WAN, you don't need to sign a crippling three-year pact!
Our inclusive subscription pricing with flexible terms reduces purchase risk and improves your financial efficiency. We offer one-, two-, or three-year subscription options to allow for maximum flexibility so you don't have to invest a lot of money upfront. And on top of that, with ExtremeCloud SD-WAN you can easily add this capability to your existing wired and wireless network, so you have the best total cost ownership and minimum risk.
Why choose SD-WAN from Extreme Networks? Because our solution turns your WAN into a strategic business asset by enabling digital transformation scaling, operational excellence, increased agility, and other critical business outcomes.
Would you like to learn more? Explore specific business values and technical capabilities behind ExtremeCloud SD-WAN? Learn what makes it stand out against other SD-WAN solutions!