What Is Managed SD-WAN? | What It Is, How It Works, Pros & Cons

6 min. read

Managed SD-WAN is a service where a managed service provider (MSP) takes on the responsibility of handling your SD-WAN operations, making network management simpler and more efficient. 

This includes deploying, configuring, monitoring, and maintaining the SD-WAN infrastructure. Managed SD-WAN allows businesses to rely on expert management and focus on core operations.

How does managed SD-WAN work?

Managed SD-WAN (software-defined wide area network) works by partnering with a managed service provider who handles the setup, management, security, and support of your SD-WAN network.

Architecture diagram illustrating managed SD-WAN architecture. The left section shows a

The service ensures that your WAN operates efficiently and securely. It’s backed by service level agreements (SLAs) that guarantee minimum performance levels and response times. It also allows you to focus on core business activities without worrying about network tasks.

Here’s what managed SD-WAN typically involves:

Infographic titled Key components of managed SD-WAN. The first component, Day-to-day management, shows a calendar and clock icon, indicating daily network operations management by the MSP. The second component, Performance monitoring, features a magnifying glass over a graph, representing continuous network performance monitoring. The third component, Issue detection & resolution, has notifications and a clock icon, symbolizing quick problem identification and resolution. The fourth component, Security implementation, is illustrated with a lock and shield, highlighting security measures like encryption and firewalls. The fifth component, Continuous support, includes support personnel icons, indicating 24/7 monitoring and support. The sixth component, Scalability & growth management, features a bar chart, signifying scalable network growth. The seventh component, Operational simplicity & improved ROI, shows a target and arrow, emphasizing simplified operations. The eighth component, Enhanced connectivity & performance, includes a document and cloud icon, representing improved connectivity. The ninth component, Integration & support, features interconnected services icons, highlighting network service integration and support.

Once you’ve selected a managed SD-WAN solution, the provider sets up the necessary infrastructure. They handle all the equipment and software installation at your various business locations. As with traditional SD-WAN, the setup is custom to fit specific business requirements.

Setup includes:

  • Configuring different types of connections
  • Prioritizing certain types of traffic
  • Ensuring seamless integration with existing systems

Once everything is up and running, the managed SD-WAN provider takes over day-to-day management. Which includes monitoring network performance to ensure everything runs smoothly per the SLA. If there’s a problem, the provider detects and fixes it quickly—ideally before you even notice an issue.

Proactive management helps keep the network reliable and efficient. Which reduces the burden on your in-house IT team. Plus, the proactive approach majorly improves the user experience because it minimizes downtime and ensures applications perform optimally.

Security is another component of managed SD-WAN services. The MSP implements security measures to protect your data, like encryption and firewalls, consistently across the network.

Managed SD-WAN services also include continuous support. SD-WAN managed services providers offer 24/7 monitoring and support through a network operations center (NOC). Experts are available around the clock to resolve any issues.

As your business grows and requires new locations or users, the managed SD-WAN solution can scale to meet demands. The MSP can adjust the SD-WAN network to accommodate growth on your behalf.

Managed SD-WAN offers many of the same benefits of SD-WAN, except with none of the management responsibilities, including:

  • Operational simplicity
  • Carrier-independent WAN connectivity and improved ROI
  • Improved security
  • Enhanced performance
  • Improved connectivity and direct cloud access
  • Seamless connectivity management
  • Foundation to SASE strategy
  • Integration with other network services
  • 24/7 support
  • Hardware lifecycle management 
  • Public cloud support

In essence:

Managed SD-WAN provides a flexible, scalable solution for organizations who need to manage complex networks across multiple locations—without the need for extensive internal network resources.

What are the differences between DIY and managed SD-WAN?

Infographic titled "Managed SD-WAN vs. DIY SD-WAN" comparing the two approaches across several categories. For "Control," Managed SD-WAN is outsourced to an MSP, while DIY SD-WAN offers complete control. "Suitable for" shows Managed SD-WAN for businesses reducing complexity, and DIY SD-WAN for large enterprises with technical resources. "Management" indicates MSP handles Managed SD-WAN, while DIY SD-WAN is managed in-house. "Resource requirements" show Managed SD-WAN frees internal IT, whereas DIY SD-WAN requires ongoing management. "Cost" lists predictable costs for Managed SD-WAN and potential increased costs for DIY SD-WAN. "Scalability" is MSP-supported for Managed SD-WAN and internal for DIY SD-WAN. "Support" offers 24/7 for Managed SD-WAN, and internal reliance for DIY SD-WAN. "Efficiency" is streamlined for Managed SD-WAN, but DIY SD-WAN can strain internal teams.

DIY SD-WAN means your in-house network team manages the design, deployment, and maintenance of the network. This approach offers complete control and customization—which makes it suitable for larger enterprises with significant technical resources.

However, SD-WAN requires ongoing management, troubleshooting, and updates. This should be no problem for organizations who have sufficient internal resources. For those that don’t, it can potentially strain the internal team and lead to increased operational costs over time.

In contrast:

Managed SD-WAN outsources these responsibilities to a third-party MSP. As explained, the MSP handles setup, monitoring, and maintenance. So your IT team can focus on other more important projects.

It offers predictable costs, scalability, and 24/7 managed SD-WAN support. It’s a streamlined, efficient option for businesses who are more focused on reducing the complexity and overhead of network management.

Why do businesses need managed SD-WAN?

Infographic listing top reasons why businesses need managed SD-WAN in a grid format with accompanying icons. "Growing network infrastructure" shows increased complexity with expansion. "Limited internal resources" and "Limited IT staff" indicate insufficient staff and expertise. "Focus shift" emphasizes concentrating on core activities. "Cost predictability" refers to controlling expenses. "Scalability demands" addresses the need for scalable solutions. "Increasing network complexity" highlights more intricate infrastructure with growth.

Businesses need managed SD-WAN to reduce the complexity and workload associated with managing a wide area network.

As organizations grow, network infrastructure becomes more intricate—and often requires significant resources and expertise to maintain. Managed SD-WAN providers take over these responsibilities. As a result, businesses can focus on core activities instead of laborious maintenance activities.

Also, specialized experts monitor and maintain managed SD-WAN. Which means improved performance, security, and reliability. By outsourcing these tasks, businesses benefit from the provider’s specialized knowledge and tools that might not be available internally.

Cost management is another key factor because managed SD-WAN can potentially help control and predict costs. Some businesses prefer to avoid the expenses associated with hiring additional IT staff and investing in network management tools. Instead, they pay a predictable fee for the managed service.

Types of managed SD-WAN deployments

Image titled "Types of managed SD-WAN deployments" showing five types, each with an icon. "Fully managed SD-WAN" features interconnected gears and checkmarks. "Comanaged SD-WAN" has a magnifying glass over charts and graphs. "Managed CPE" displays a network of connected devices. "SDWANaaS" shows a cloud surrounded by gears and nodes. "SASE" features a shield surrounded by nodes.

Fully managed SD-WAN

In a fully managed SD-WAN deployment, the service provider takes complete responsibility for planning, deploying, configuring, monitoring, maintaining, and updating the SD-WAN solution.

This type of deployment requires minimal involvement from the client’s IT team because the provider handles all aspects of the network.

Comanaged SD-WAN

In a comanaged SD-WAN deployment, the customer retains some level of control and visibility over their SD-WAN environment.

This option is suitable for businesses that want more oversight over network policies and configurations but still require the provider’s technical expertise, proactive monitoring, and advanced reporting.

Managed CPE

In a managed customer premises equipment (CPE) SD-WAN deployment, the provider manages the physical network equipment installed at the customer’s locations.

This approach is typically best for businesses with specific security and compliance requirements that require physical hardware and direct involvement from the IT team.

SD-WAN as a Service

SD-WAN as a Service (SD-WANaaS) is a cloud-delivered, subscription-based alternative to on-premises SD-WAN deployments.

It provides SD-WAN functionality without the need for on-site appliances, installation, or management. This model offers flexible, easily scalable solutions with minimal upfront investment.

For small businesses lacking extensive in-house network and security resources, SD-WANaaS delivers the necessary network performance and security without the burden of maintaining an on-premises SD-WAN system.

SD-WANaaS can also potentially work well for companies with large, complex cloud infrastructures because it simplifies SD-WAN design and implementation.

SASE

Some managed SD-WAN MSPs offer SASE integration as part of their service offerings.

Secure access service edge (SASE) combines SD-WAN with a suite of integrated security services, including:

  • Secure web gateway (SWG)
  • Cloud access security broker (CASB)
  • Next-generation firewall (NGFW)
  • Zero trust network access (ZTNA)

SASE provides a comprehensive network security environment, addressing modern cybersecurity threats while delivering network performance and reliability.

Further reading: What Are Managed SASE Services?

What are the pros and cons of managed SD-WAN?

The infographic titled "Pros and cons of managed SD-WAN" lists benefits and drawbacks. The "Pros" section, marked by a checkmark icon, includes reduction in complexity, expert management, enhanced security, reliability and efficiency, and focus on core activities. The "Cons" section, marked by a cross icon, includes higher cost, less direct control, and potential slower response times.

Managed SD-WAN offers several benefits that can make it an attractive option for businesses.

One of the main advantages is the reduction in complexity.

Again, managed SD-WAN providers handle the setup, configuration, and ongoing management of the network. So the outsourcing frees up internal team members and enlists the help of network experts.

In other words:

You get a robust, well-managed network without the hassle of handling it in-house.

Another pro is enhanced security. Managed SD-WAN services often include built-in security features such as encryption, firewalls, and intrusion detection systems. The MSP maintains and updates these features, and your network remains secure.

However:

There are also some downsides to consider.

One potential con is the cost. Managed SD-WAN services can be more expensive than a DIY approach, especially for smaller businesses with limited budgets. The subscription fees and additional costs for advanced features might add up over time.

Also, relying on a third-party provider means less direct control over your network. Yes, this can free up your IT resources—but it also means you depend on the provider for changes and. The dependency can sometimes lead to slower response times or less flexibility in making immediate adjustments.

It’s worth noting:

The benefits of reduced complexity, enhanced security, and expert management often outweigh these potential drawbacks. For many businesses, the trade-off is worth it for a reliable, secure, and well-maintained network.

To sum it all up, managed SD-WAN can offer worthwhile advantages in terms of simplicity and security. But it can be costlier and less flexible compared to a DIY approach. Businesses should weigh pros and cons carefully to determine if managed SD-WAN is the right solution.

What is the difference between managed SD-WAN and SD-WAN as a service?

Parameters Managed SD-WAN SD-WANaaS
Responsibility Provider handles deployment, configuration, monitoring, and maintenance Customer handles day-to-day management and configuration
Hardware requirement Involves on-premises hardware Cloud-based solution, minimal hardware
Control level Hands-off approach, less control for the customer More control and customization by the customer
Flexibility & scalability Moderate flexibility and scalability High flexibility and scalability
Suitable for Businesses with limited IT resources Businesses seeking more control and customization

Managed SD-WAN and SD-WANaaS both offer ways to use SD-WAN technology but differ significantly in their approaches and responsibilities.

Managed SD-WAN involves a service provider taking full responsibility for the deployment, configuration, monitoring, and maintenance of the SD-WAN infrastructure, as explained.

SD-WANaaS, on the other hand, is a cloud-based solution that doesn’t require extensive on-premises hardware.

Instead, the service is delivered over the internet. Customers manage their network through a cloud-based portal. While the provider maintains the core infrastructure and ensures it’s up-to-date, day-to-day management and network configuration are typically the customer's responsibility. The model generally offers more flexibility and scalability. Businesses can adjust network settings and resources as needed.

The main difference between the two is the level of control and management.

Managed SD-WAN offers a more hands-off approach because the provider handles most of the operational aspects.

In contrast:

SD-WANaaS requires more active involvement from the customer in managing and configuring the network.

The distinction makes managed SD-WAN suitable for businesses with limited IT resources, while SD-WANaaS might appeal to those looking for more control and customization options.

How to choose the right deployment model: managed SD-WAN, DIY, or a combination

Decision tree depicting how to choose the right SD-WAN deployment model based on factors like resources, network complexity, management preferences, and security needs.

Choosing the right SD-WAN deployment model depends on your business’s needs, resources, and goals.

To help you decide which deployment model will work best for your business, start by thinking through the following questions:

  • Does our team have the expertise and resources to manage a complex network?
  • Do we have the resources to provide 24/7 network monitoring and support?
  • Is it beneficial for us to manage legacy network components that still require attention?
  • Are our network needs complex, involving multiple global locations and critical applications?
  • Would our business benefit more from focusing on core activities rather than network management?
  • Does our infrastructure rely heavily on the public cloud or SaaS applications, and which deployment model supports these best?
  • Are we fully aware of the security protocols necessary to mitigate risks in our network?
  • What is our timeline for implementing SD-WAN, and who are the key stakeholders that need to approve this decision?
  • How important is having direct control and oversight of our network to our business?
  • Do we have strict compliance and security policies that require in-house management?
  • Are we open to relying on external expertise for certain tasks while retaining control over others?

Then consider the details of each deployment model:

As previously stated, managed SD-WAN effectively involves outsourcing your SD-WAN infrastructure to a service provider. So, this model is for businesses that don’t have in-house expertise or resources to manage the network. Managed SD-WAN providers offer comprehensive services, including network monitoring, security, and performance optimization, allowing your IT team to focus on core business activities.

DIY SD-WAN, on the other hand, requires your internal IT team to handle all aspects of the SD-WAN network. This includes designing, deploying, and managing SD-WAN infrastructure. DIY is suitable for larger enterprises with a robust IT department and the necessary expertise to manage complex network environments. You’ll get more control and customization, but you’ll also need time and resources.

A hybrid model combines elements of both managed and DIY models. With this approach, certain aspects of the network are managed in-house, while others are outsourced to an MSP. This model provides flexibility, allowing businesses to lean on external expertise for specific tasks while retaining control over critical areas. A hybrid combination tends to be best for medium-sized businesses or those with unique requirements that benefit from both in-house control and external support.

TIP

Choose managed SD-WAN if you need to offload network management responsibilities, DIY if you have the resources and expertise to manage it internally, and hybrid if you need a mix of both approaches for flexibility and control.

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Managed SD-WAN FAQs

Managed SD-WAN is a service where a provider handles the deployment, management, and maintenance of SD-WAN infrastructure, offering businesses optimized network performance and security without the need for in-house management.
SD-WAN optimizes WAN performance by intelligently routing traffic over multiple connections, enhancing application performance, reducing costs, and improving network flexibility and reliability.
WAN is a traditional network connecting multiple locations over long distances, typically using MPLS. SD-WAN is a software-defined approach that uses multiple connection types and intelligent routing for improved performance and cost-efficiency.
The different types of SD-WAN services include fully managed SD-WAN, comanaged SD-WAN, managed CPE, SD-WAN as a Service, and SASE. Each type varies in the level of management, control, and infrastructure deployment.