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How WAN Connects Your Business to Success

May 10, 2024

Wide area network (WAN)

It’s no longer the big beating the small, but the fast beating the slow.

In today’s tech-driven world, big corporations are leagues ahead of small businesses. They’ve acquired a wealth of knowledge and continue to expand their presence while the others wait for a window of opportunity.

But no matter the size of your business, being agile and adaptable is a game-changer.

Like it or not, we live in a digital world - and this is becoming more and more true with each passing year. Digital operations of all kinds, such as healthcare, education, and commerce, rely on software and various types of data to serve their customer base and operate smoothly.

As businesses become more reliant on this data, they're also becoming more dependent on the infrastructure that powers it. In other words, companies that provide these digital operations must ensure they have a stable network to keep things running. Otherwise, you could face a major problem with your business network, which could result in lost or stalled revenue from customers who can’t use your services online.

Globalization and the shift to cloud-based computing environments have pushed the need for wide area network (WAN) technology into the spotlight. Now more than ever before, businesses need to be connecting branches, offices, and other remote locations to ensure they can remain up to date with today’s complex IT infrastructure. They’ve begun leveraging software-defined wide area network (SD-WAN) software to improve the way WAN technology supports businesses.

WANs are becoming increasingly important as companies grow more reliant on data. These networks make it possible to share information between branches and businesses worldwide.

A WAN allows an organization to connect workers and devices (computers, telephones, and other electronic equipment) at several locations. It's often used to enable communication between branch offices or headquarters that are distant from one another. WANs can connect networks over greater geographical distances than would be possible with a single local area network (LAN).

A LAN is a collection of computers and network devices connected across a short distance, while a WAN can connect the main office, branch offices, cloud services, and other facilities for companies of all sizes. Service providers can physically implement WANs in a number of ways, such as via leased lines, frame relay, asynchronous transfer mode (ATM), multi-protocol label switching (MPLS), 4G or 5G, and long-term evolution (LTE) networks, or simply hooking up two LANs with routers.

Service providers frequently build these networks and subsequently lease to companies, schools, governments, and the general public. As long as they have access to the existing WAN, these clients can utilize the network to transmit and store data and interact with other users.

Access is given through various channels, including virtual private networks (VPNs), cellular networks, or public networks. Some businesses even use a private WAN as an intranet.

A metropolitan area network (MAN) is a kind of WAN that connects nearby users over a large-scale community. However, MANs are typically not as broad-reaching as a conventional WAN. Many organizations have created their WAN to connect remote offices and related business facilities, making it possible to share data and ideas with all their workers, regardless of location.

Wide area network examples:

  • In a corporation, a WAN connects branches or remote employees at home with the organization's head office.
  • Banks need WANs for branch offices and ATMs. The branches are spread throughout the country or across the globe, but they’re all connected via secure connections.
  • The internet can be dubbed as the world's largest WAN as it’s the broadest and most diversified computer network globally.

Why do businesses need WAN?

Without WAN, organizations would be confined to certain geographic zones or restricted locations. LANs allow firms to function within their building but expansion to other regions, whether other cities or even different nations, would be impossible since the accompanying infrastructure would be too expensive for most organizations.

As businesses expand and become more global, WANs enable them to communicate across branches, share information, and stay connected. Employees from all over the world can connect to a company's WAN to exchange data, interact with coworkers, or stay connected to the company's larger data resource center.

When employees travel for business, WANs enable them to obtain the required information to complete their tasks. WANs also allow companies to communicate information with customers and partners. Network professionals assist companies with the upkeep of their internal WANs and other critical IT infrastructure.

However, WANs also provide an essential service to the general population. Students can use WANs to access the university's library databases or conduct research. Every day, individuals rely on WANs to communicate, bank, shop and do other common activities.

Should you set up your own WAN? Due to the long distances WANs cover, setting one up can be expensive because the company has to buy all of the required cabling, fiber, and satellite systems. As a result of the high cost and time involved in setting up a WAN, most organizations choose to rent wide area network services from a reputable service provider.

How does a WAN work?

Many companies struggle with outdated network infrastructure and complicated topologies due to new technologies that have been introduced over time. Such businesses require WANs that combine wired and wireless technologies to increase productivity and profitability.

So, how does a WAN work? The answer to that question varies based on the type of WAN and provider you use. But it's safe to say most WANs use fiber-optic cables and digital signaling technology to transfer data across long distances.

To link its numerous sections, WANs employ many forms of connection and technologies. WAN service providers frequently use virtual private networks to connect locations and devices securely. Because data handled by IP-based WANs can be susceptible as it travels across the Internet, a virtual private network is essential.

There are two types of wide area networks: switched and packet-based networks. A switched network uses dedicated pieces of hardware to direct traffic between endpoints. In contrast, packet-based networks route data using the Internet Protocol (IP) over shared media like Ethernet or optical fiber.

A WAN can be a private system that enables a set of organizations to work together as a single, cohesive unit. Or it can be a public medium used to exchange data across a variety of Internet-connected systems.

Wide area network topologies

Connecting different locations over WANs may require a wide range of service provider technologies and WAN configurations. The most common WAN topologies are:

Point-to-point topology

A point-to-point topology makes use of a point-to-point circuit to connect two terminals. A point-to-point connection often uses dedicated leased-line connections to provide service across the provider network. Packets transmitted from one location are delivered to another.

point-to-point topology

WAN locations in point-to-point networks are linked by high-capacity network cable known as backbone. This is a straightforward structure to install, and it cuts costs by requiring less cable. However, it exposes networks to failure since a single defect on the backbone may knock down entire portions of the network.

Hub-and-spoke topology

A point-to-point architecture with numerous point-to-point circuits is one option for a private network connection between many sites. Each point-to-point connection has its own specialized hardware interface, which necessitates the use of several routers equipped with numerous WAN interface cards. This interface can be costly. A point-to-multipoint architecture, often known as a hub-and-spoke topology, is a cheaper option.

hub-and-spoke topology

In a hub-and-spoke topology, one physical site serves as the hub (for example, the main office), while the other physical sites serve as spokes. Spoke sites are linked to one another via the hub site. Routing of the network communication between two spokes in a hub-and-spoke design is dependent on the hub.

The main drawback of the hub-and-spoke WAN architecture is that communication across the whole enterprise network can be disrupted if the main office network malfunctions.

Full mesh topology

One major downside of hub-and-spoke topologies is that all connectivity must pass through the hub. With a full mesh topology based on virtual circuits, any site can directly communicate with any other site. A full mesh topology requires each site's WAN router to be connected to every other site on the wide area network.

full mesh topology

Full mesh topologies give an outstanding level of reliability and fault tolerance, but at a high cost. A full mesh topology becomes more expensive as a company grows due to the number of physical WAN circuits required and the router configurations to support the design. Troubleshooting the architecture becomes a problem as the infrastructure scales.

Dual-homed topology

Dual-homed topology is an excellent choice for improving speed, load balancing, and redundancy. However, it’s a costly solution. A dual-homed WAN architecture links a single site to two additional core sites. Even if one of these sites fails, the link remains active. Load balancing is also offered between two connections in typical conditions.

Dual-homed topology

Dual-homed topologies are generally more challenging to implement because they necessitate more extensive and sophisticated environments. However, dual-homed topologies offer the advantage of distributed storage or transmission and the possibility to integrate backup service provider connections.

WAN vs. LAN

Businesses must consider the type of network they require. There are two basic options in this scenario: local area networks and wide area networks. While they may appear to be similar, there are significant differences and advantages to each.

Examining these options will help you determine which is best for your company's requirements. It’s not a one-size-fits-all approach, and it’s critical to make the right choice to ensure that you receive the appropriate benefits.

WAN vs. LAN

Local area network

Local area networks make it possible to link computers and devices that are close in proximity. They can exchange files and accomplish tasks, which typically indicates they're on the same network or switch. This sort of network often consists of ordinary devices that perform various business technologies.

Tablets, printers, and desktop computers are all examples of electronic devices connected to a LAN. In addition to routers and switches, the network may include wireless cards or Ethernet connections.

LAN is often set up in a house to facilitate network sharing. Users can use various cables to physically link different devices together. However, it’s considerably more common to implement wifi to connect the other technologies and ensure a completely integrated network is established.

It’s easier to increase speed levels and achieve more incredible speeds in a LAN network than in a WAN network. This heavily depends on the hardware and connections used, but it can be swift since you can physically connect devices. LAN devices can also be linked to the same router or switch, resulting in faster connections.

Wide area network

Wide area networks are used to link devices that are physically separated from one another. Typically, WAN configurations are considerably more complicated than LAN configurations. Businesses often begin with a LAN and then deploy a WAN to link numerous LAN networks. Furthermore, this implies that distant workplaces may be linked, which is generally done via public networks.

By connecting multiple offices through the internet to the host office, companies can communicate and access essential resources regardless of location. This saves time and money by cutting down travel costs while allowing work to be done regardless of time zone.

The internet is the best example of a WAN network. At its most basic level, it's a system that allows many networks to communicate with one another. 

In comparison to LANs, WAN speeds can be hampered by a variety of issues. Users don’t have control over this, and WANs are slower because data has to travel a longer distance. High-quality copper cables are used to speed up WAN connections.

Which network would suit you?

Examining your business setup is the simplest way to decide which network you require. A LAN is usually all that’s necessary for a small office or business. Various files can be transmitted across your workplace using the local network, resulting in a linked corporate environment

You'll need a WAN if your company is larger or if you have several locations, as you’ll likely need a single system to connect to those branches or other business locations.

Although LANs are mainly used in homes, small businesses, and schools, WANs offer more extensive connectivity. LANs are often privately owned, but WANs are frequently managed by a third party, such as a telecom company.

WAN vs. SD-WAN

Switching to a software-defined wide area network (SD-WAN) has become more common for companies worldwide. On the other hand, traditional WAN technology remains a legitimate and dependable way to offer and receive network services. In certain situations, a hybrid strategy that incorporates both might be the most advantageous.

Here's what you need to know about these two technologies, whether your company is still using legacy WAN, has made the transition to SD-WAN, or is combining the two.

WAN vs SD-WAN

WAN

Traditional wide area network technology has long been the standard for IT, voice, and data networking. A conventional WAN links LANs to one other using routers and VPNs to connect numerous office locations. Traditional WANs rely on dedicated MPLS connections to provide secure, direct connections for efficient network traffic flow. This allows businesses to prioritize their network's voice, video, and data traffic.

Traditional WANs are more difficult to scale than SD-WANs. This is due to the significant planning that has to be done in advance and the need for adequate logistical assistance in place to build up the infrastructure required to get services up to speed.

SD-WAN

Network traffic has risen as business-critical tools and apps have moved online, straining the MPLS connections of a completely conventional WAN. SD-WAN is a novel approach to wide area networking because it mixes classic WAN technologies, such as dedicated MPLS, with more cost-effective broadband connections.

SD-WAN is a hybrid application that combines the concepts of software-defined networking (SDN) with WAN connectors. It gives businesses a complete picture of their WAN and the flexibility to prioritize network traffic across multiple connections. SD-WAN analyses traffic in real time and chooses the optimum path for each data packet.

SD-WANs function by implementing tunneling technologies on top of pre-existing network infrastructure. It essentially runs a network on top of a network, with unified communications routes and optimal application performance. It allows businesses to dynamically connect branch offices and corporate headquarters by combining internet and cloud capabilities with integrated information.

Types of WAN connections

One of the most challenging aspects of establishing a wide area network is determining the appropriate connection type. Before you can begin implementing, you must consider several factors. A thorough grasp of all connection types is essential for choosing the appropriate option.

There are two main types of WAN connections:


  1. Dedicated connection
  2. Switched connection

Dedicated connection

Dedicated connections are fixed-bandwidth point-to-point connections that provide persistent connectivity to distant locations. Since dedicated connections are stable, permanent connections, establishing communication between two sites requires minimal overhead.

Dedicated connections have low overhead and high-speed transmissions, making them ideal for businesses that require high-bandwidth, 24/7 WAN connectivity. Carrier fees and support expenses for dedicated connections are rather costly.

Switched connection

A switched WAN connects numerous end nodes over a single WAN network. There are three types of switched WAN connections: circuit-switched, packet-switched, and cell-switched.

  • Circuit-switched connection: This is the most common form of WAN connection. Circuit switching is the process of transmitting data streams over specialized physical circuits. Telephone companies utilize circuit switching to deliver asynchronous dial-in and integrated services digital network (ISDN) services.
  • Packet-switched connection: Packet-switching creates point-to-point connections that pass over the network of a public carrier. It creates a logical path over the physical path and utilizes it to connect two locations. These logical circuits are referred to as virtual circuits (VCs). VCs are not associated with any particular physical circuit. While packet-switched services are more expensive than dedicated connections, they can deliver very high bandwidth solutions at a lower cost.
  • Cell-switched connection: This is an improved version of packet-switched connections. It offers assured bandwidth, minimum latency, fewer mistakes, and high quality of service (QoS). Packet-switched or cell-switched connections are the best alternatives for connecting many distant sites with a single router interface.

Advantages of a WAN

As technology improves, companies are increasingly using WANs to augment their existing network infrastructure. Corporate networks and large organizations use WANs to connect offices in different locations and provide highly available and reliable services if one office goes down for any reason.

Here are some major benefits of using a wide area network:

  • Increased area coverage: Wide area network spans huge geographical regions (1000kms or more). If your company's offices are spread out across the country or globe, you can interact with all of them over WAN without difficulty. Leased lines can be provided by internet service providers (ISPs) for this purpose.
  • Increased bandwidth: Leased lines are frequently used as the backbone of enterprise WANs instead of broadband connections. Leased lines provide numerous advantages for businesses, including faster upload speeds than standard internet connections. Business WANs often have unlimited monthly data transfer limitations, allowing users to employ these connections as much as they like without incurring additional charges.
  • Centralized IT infrastructure: A WAN reduces the requirement for each office to purchase a separate email, file servers, or firewall. Instead, they can establish one in the data center. Setting up a WAN also makes server maintenance easier because businesses won't have to support, back up, host, or secure multiple units. Establishing a WAN reduces cost by offering a central pool of IT resources the entire organization can use.
  • Guaranteed uptime: Many WAN telecommunication providers deliver enterprise-level assistance. As part of the service level agreement (SLA), companies are guaranteed a certain level of uptime on a monthly, quarterly, or annual basis. They can provide clients with round-the-clock assistance. No matter what sector you are in, guaranteed uptime is a huge benefit.

Disadvantages of a WAN

A WAN gives companies access to fast connections of shared bandwidth between their sites. A WAN connection allows you to have more control over your network, but it also comes with a set of disadvantages that can force you to choose other technologies over a WAN.

  • High installation costs: WANs are rather costly because they’re complex and challenging to set up. The larger the WAN, the more expensive it is to set up. The necessity to link far-flung remote regions is one factor for the high setup expenses.
  • Security issues: Security breaches such as unauthorized usage, information theft, and malicious file destruction are possible with WANs. While businesses may have some protection in place at their branches, most of their security is concentrated in their data centers which oversee and manage information transmitted to their locations. This method keeps administration costs down and limits the company's capacity to deal immediately with security breaches at its facilities.
  • Troubleshooting issues: Troubleshooting WAN failures is a time-consuming and challenging process. Because of the network's extensive geographic coverage, it's impossible to determine the specific reason for every problem.

Build your dream network

In the light of business results and high-level technology, digital transformation is now well recognized. But the relevance of WAN is often underestimated in the underlying layer of connectivity.

Thanks to quick progress in branches, leasing, telecommuting, and a more mobile workforce, your end-user can be anywhere in the world. Application types are getting increasingly diversified, centralized, and even outsourced.

A well-built WAN can assist businesses in keeping up with the pace of successful digital transformation projects.

WAN optimization can help improve the performance of existing wide area networks. Discover the leading WAN optimization software to improve the performance of business applications running on corporate wide area networks.


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