SD-WAN Cost In 2025: What You’ll Pay And How To Budget

My business is growing as planned, but it’s becoming increasingly difficult to maintain network costs. What can I do about it? If you’ve had this thought (or something similar, because come on, what are the chances you’ve thought exactly this?), the fact is that network costs do increase as your needs do, but for everything in life there is a solution: SD-WAN technology is transforming the way companies connect their offices.

TVG Consulting helps businesses like yours navigate the shift to SD-WAN with solutions that make sense for your budget. In this guide, we’ll break down real SD-WAN pricing, explore cost-saving opportunities, and show you how to build a practical deployment plan. You’ll learn exactly what drives costs and how to estimate potential savings for your organization.

SD-WAN reduces network costs 40-80% compared to traditional MPLS solutions.
Monthly costs range $150-300 per branch for SMBs, less for enterprises.
Most organizations achieve ROI within 12-24 months through reduced operational costs.
Subscription-based pricing models offer the most flexibility and predictable budgeting.

What Is SD-WAN?

Software-Defined Wide Area Networking, or SD-WAN, is a modern approach to connecting your business sites and users across multiple locations. Instead of relying on expensive, rigid legacy WAN technologies like MPLS, SD-WAN uses software to intelligently route network traffic over a mix of broadband, LTE, and private links. This means you can boost performance, add security features, and manage your entire network from a single dashboard.

As more businesses move to the cloud and need flexible connectivity, SD-WAN has become the go-to solution for organizations of all sizes. In fact, the global SD-WAN market is projected to reach $34.9 billion by 2025, growing at nearly 32% annually. TVG Consulting helps businesses navigate this shift with tailored SD-WAN solutions that fit your needs and budget.

What Drives SD-WAN Pricing?

Don’t expect a fixed price for SD-WAN technology, as it depends on several factors, such as the number of sites you connect, for example. Basically, the more sites, the higher the cost, as hardware, licensing, and technical support costs will be higher.

Your bandwidth needs also matter: higher performance requirements or heavy cloud application use will increase costs. The feature set you choose, such as advanced security or deep application visibility, can push your monthly cost from $100-250 per site for basic setups to $500-1000+ for premium solutions (Netify, 2024).

Deployment model is another big variable. DIY means your team manages everything, while co-managed or fully managed services add a monthly fee but reduce your internal workload. Finally, required resiliency – like dual broadband links or LTE failover – adds to both hardware and service costs. As hardware costs have dropped about 15% per year, you now have more options to match your budget and needs.

Popular SD-WAN Pricing Models and When Each Makes Sense

Let’s explore the different SD-WAN pricing models so you can evaluate the advantages and disadvantages of each in relation to your company’s needs and the size of your network:

Subscription or “as-a-Service” Bundles

Most businesses now prefer a subscription or “as-a-Service” model. You pay a predictable monthly fee that covers hardware, software, security, and support.

If you like simplicity and ease of budgeting, then this is the perfect model for your company. Let’s look at a practical example: You have a retail chain with 10 stores and suddenly want to add or remove one. With this model, you can easily do so by increasing or reducing costs according to what you want to do. In fact, according to Gartner (2024), up to 76% of companies choose this model because of its great flexibility and, VERY IMPORTANTLY, its low initial investment.

Per-Site / Per-Edge Appliance Licensing

Here, the situation is more controllable, as the price depends directly on the number of sites and/or peripheral devices connected, so if your needs are fairly stable, this is a good option.

For example, if your company has 10 offices, a fixed rate is set for each one, making it much easier to forecast costs.

Bandwidth-Based or Tiered Plans

Some providers also offer plans that are tailored to your workflow and data volume, meaning that the more bandwidth you use, the higher the cost, and vice versa. For example, a 100 Mbps plan might cost $200/month per site, while a 1 Gbps plan could be $800/month.

This model is quite convenient due to its scalability and is specifically ideal for companies that handle different data flows according to the season.

Typical Cost Ranges for SMBs vs. Mid-Market & Enterprise

For small and midsize businesses, expect to pay $150–$300 per branch per month for basic SD-WAN services. Larger organizations with many sites often see volume discounts, bringing monthly costs down to $75–$150 per site. Managed services add $125–$375 per site monthly, depending on support and security features.

Don’t forget the one-time hardware investment, which ranges from $1,500–$12,000 per site based on bandwidth and performance requirements. Entry-level hardware for a small office may be $500–$2,000, while high-capacity edge devices for data centers cost much more.

Framework to Estimate Your Own SD-WAN Budget

To build a realistic SD-WAN budget, start by mapping your site count and bandwidth demand. Next, pick a feature tier—basic, secure, or SASE (Secure Access Service Edge)—that matches your security and cloud needs. Finally, price out edge hardware or virtual appliances, and add a 10-15% contingency for future growth.

Map Site Count and Bandwidth Demand

List all sites and estimate bandwidth for each. A small office may need 50 Mbps, while a headquarters or data center could require 1 Gbps or more. This step ensures you don’t under- or over-provision, which can impact performance and costs.

Pick a Feature Tier (Basic, Secure, SASE)

Decide if you need just basic SD-WAN functionality, or if advanced security and cloud integration are must-haves. SASE bundles security and network services for remote users and cloud apps, but costs more.

Price Edge Hardware or Virtual Appliances

Get quotes for hardware or virtual appliances that match your bandwidth and performance needs. Remember to add 10-15% to your budget for unexpected growth or new sites – this helps avoid surprise costs down the road.

How SD-WAN Cuts Costs Versus MPLS and Legacy WAN

SD-WAN can deliver 40-80% cost savings over MPLS by using affordable broadband instead of pricey private circuits (Gartner, 2024). You also save on network management, since centralized orchestration reduces the need for a large IT team. SD-WAN consolidates multiple devices – like routers, firewalls, and WAN optimizers – into a single solution, cutting both hardware and support costs. Built-in security features can even replace standalone firewalls, further reducing expenses.

Is SD-WAN Worth It? ROI Timelines

Most businesses see payback on SD-WAN within 12-24 months, thanks to lower WAN costs, fewer outages, and improved productivity. With less downtime and better performance, your users stay productive and your IT team spends less time troubleshooting.

Schedule a Free SD-WAN Cost Assessment With Our Network Architects

If you’ve made it this far, you must be eager to discover everything SD-WAN technology can do for you and your business. Let’s start at the beginning: Let’s draw up a detailed quote with a structured return on investment model tailored to your needs.

TVG Consulting is here to help you navigate these choices and design a cost-effective SD-WAN solution that matches your business needs. Whether you’re managing a handful of sites or hundreds of locations, our team can provide a detailed cost assessment and ROI analysis to ensure your network transformation delivers maximum value. Contact us today to start planning your SD-WAN journey with confidence.

Understanding SD-WAN pricing doesn’t have to be complicated. As we’ve explored, the key factors – from site count and bandwidth needs to security features and deployment models – all work together to determine your total investment. While costs vary significantly based on your specific requirements, the potential for 40-80% savings compared to traditional MPLS makes SD-WAN an attractive option for organizations looking to modernize their networks while controlling expenses.