SD-WAN ROI: How to Quantify Cost Savings and Operational Efficiency
In today’s hybrid and cloud-first business landscape, network agility and cost efficiency are no longer optional – they’re essential. Software-Defined Wide Area Networking (SD-WAN) has emerged as a transformative solution, enabling organisations to modernise their connectivity while delivering measurable financial and operational benefits, whilst underpinning their business in the right way. But how do you quantify the return on investment (ROI) of SD-WAN?
This insight piece explores frameworks and metrics for calculating SD-WAN ROI, Total Cost of Ownership (TCO) reduction, and network management efficiency gains – while showcasing how SCC’s SD-WAN services deliver tangible value.
Understanding SD-WAN ROI: Beyond Cost Savings
SD-WAN ROI is typically realised across three key dimensions:
1. Direct Cost Savings
- Reduced MPLS dependency
SD-WAN enables the use of lower-cost internet facing circuits, reducing reliance on expensive MPLS circuits. - Hardware consolidation
Virtual appliances and cloud-based management reduce capital expenditure on routers and firewalls. - Zero-touch provisioning:
Minimises deployment costs and accelerates branch rollouts.
2. Operational Efficiency Gains
- Centralised management:
Streamlines network operations and reduces manual configuration errors. - Dynamic traffic steering:
Improves application performance and user experience. - Built-in security:
Integrated SASE capabilities reduce the need for separate security appliances.
3. Business Agility
- Getting the right architecture for business:
Bringing users closer to data and applications through a differentiated design approach. - Improved cloud access:
With applications and data now cloud based, having the right design to enhance access to this is paramount. - Support for hybrid working models:
With users working and operating from a number of locations, integrating with SSE technology allows a secure approach to work regardless of location.
Frameworks for Calculating SD-WAN ROI
To build a compelling business case, consider the following framework:
1.Baseline Cost Analysis
• Current spend on MPLS circuits, hardware, support, and maintenance.
• Time and resources spent on network troubleshooting and provisioning.
2. Projected SD-WAN Costs
• SD-WAN subscription or licensing fees.
• Implementation and training costs.
• Ongoing managed service costs.
3. Savings Estimation
• Connectivity: Broadband vs MPLS cost comparison.
• Hardware: Reduction in physical devices.
• Labour: Fewer hours spent on manual configuration and troubleshooting.
4. Efficiency Metrics
• Mean Time to Resolution (MTTR)
• Network uptime percentage
• Application performance improvements
• User satisfaction scores
5. Payback Period & Net ROI
• ROI = (Total Savings – Total Costs) / Total Costs
• Payback period = Time until cumulative savings exceed initial investment
Real-World Example
A 100-branch enterprise replacing dual MPLS links with a hybrid SD-WAN setup (1 MPLS + broadband) saw:
• 20% reduction in connectivity costs
• 9x increase in bandwidth
• Improved cloud application performance
• Faster deployment times and reduced IT overheads
SCC’s SD-WAN Advantage
SCC delivers a fully managed SD-WAN service designed to simplify connectivity, enhance security, and optimise performance:
- End-to-End Management: From assessment to deployment and ongoing support and management.
- Customisable Packages: Base, Standard, and Enhanced tiers to suit every business need.
- SASE Integration: Built-in security features for a robust, compliant network.
- Carrier Diversity: Increased resilience and flexibility for hybrid working.
- 24/7 Network Operations Centre: Proactive monitoring and incident resolution.
- Flexible approach: our service provides a flexible approach to what elements of the service you take.
- Flexible Payment Models: Subscription-based or financed options to suit your budget
Ready to unlock the full ROI potential of SD-WAN?
Speak to an SCC Specialist today to assess your current network, explore cost-saving opportunities, and design a future-ready connectivity strategy.