SD-WAN largely exists today to support two key enterprise transformations: multicloud and the software-defined branch (SD-Branch).
Multicloud has changed the center of gravity for enterprise applications, and with that, has changed traffic patterns too. No longer does traffic need to flow to enterprise data center sites or central internet peering points and breakouts. That’s because most traffic from users and devices in the enterprise campus and branch today goes to cloud-based applications scattered across a host of clouds.
It’s neither economical nor efficient to haul traffic over WAN-dedicated links to a central enterprise site. So to optimize the cost and performance of multicloud-bound traffic, modern WAN edge routers, often called customer premises equipment (CPE), are now equipped with hybrid WAN links and routing. Hybrid WAN interfaces may include WAN provider-dedicated links such as MPLS, as well as direct internet links over xDSL, broadband and 4G/LTE wireless.