MPLS vs SD-WAN: Optimizing Your WAN for the Cloud Era

Imagine your business as a bustling city with branch offices scattered across different districts. Efficient communication between these locations is vital for smooth operations. This is where Wide Area Networks (WANs) come in, acting as the high-speed highways that connect your city's various departments. But when it comes to choosing the right WAN technology, navigating the options can feel like getting lost in a maze.

This comprehensive guide dives deep into the world of WANs, exploring the two dominant technologies: Multiprotocol Label Switching (MPLS) and Software-Defined WAN (SD-WAN). With the increasing use of cloud-based applications, businesses are more reliant than ever on the Internet to deliver WAN traffic. As a result, they’re migrating from MPLS networks to SD-WAN technology which begs the question "Is MPLS dead?".

So buckle up, and let's embark on a journey to find the perfect WAN solution for your business!

MPLS VPN provides a dedicated connection between branch offices and data centers, ensuring secure and reliable data transfer. This comes at a significant cost, as businesses are required to purchase and maintain expensive dedicated connections. MPLS also requires a high level of technical expertise to configure and manage, making it a challenge for small and medium-sized enterprises (SMEs).

MPLS networks function using different features including:

• Label Switching: MPLS uses labels to route packets rather than traditional IP addresses. This allows for faster packet forwarding as routers can quickly identify and forward labelled packets based on pre-established paths.
• Traffic Engineering: MPLS enables network engineers to control traffic flows more efficiently by setting up specific paths or tunnels for different types of traffic. This helps in optimizing network performance and bandwidth usage.
• Quality of Service (QoS): MPLS can prioritize certain types of traffic, such as voice or video, over others. This ensures that critical applications receive the necessary bandwidth and performance to function effectively.
• Virtual Private Networks (VPNs): MPLS is commonly used in creating VPNs, allowing organizations to establish secure, private networks over a shared infrastructure. This is often referred to as MPLS VPN, providing a cost-effective and scalable solution for connecting remote offices or users.

MPLS networks were originally designed to simplify and enhance performance by offering an overlay solution. However, routing cloud traffic efficiently through MPLS can be complex. To address this, organizations are exploring alternative approaches to complement or even replace MPLS:

MPLS Offloading: This strategy utilizes a direct internet connection at branch offices to handle web-bound traffic, taking the load off the MPLS circuit which then focuses on headquarters communication. While this approach improves efficiency, it raises security concerns. Organizations might need to implement a complex suite of security products at each branch or forward traffic through a proxy server, which can limit security effectiveness and inspection capabilities.

Direct Internet Replacement: Completely replacing MPLS with a direct Internet connection at branch offices offers a more efficient path to the cloud. However, replicating the reliable and consistent connectivity of MPLS becomes a challenge. Additionally, implementing robust security measures becomes an additional consideration.

SD-WAN with MPLS: Software-defined WAN (SD-WAN) offers a flexible solution. Organizations can leverage SD-WAN to complement their existing MPLS network with affordable broadband Internet connections. This approach allows for a more strategic decision-making process regarding branch network optimization based on specific application, network, and bandwidth needs. SD-WAN can even completely replace MPLS with Internet connectivity, providing a cost-effective and flexible alternative.

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SD-WAN, which stands for Software-Defined Wide Area Network, is a technology that simplifies the management and operation of a wide area network (WAN) by separating the networking hardware from its control mechanism.

SD-WAN offers businesses a more cost-effective and flexible solution for their WAN needs. Instead of relying on dedicated connections, SD-WAN allows businesses to leverage lower-cost broadband connections such as cable, fibre, or cellular (LTE/5G). This significantly reduces the cost of WAN connections while providing the necessary bandwidth to support modern cloud-based applications.

Contrary to MPLS, SD-WAN uses a variety of different features to improve performance and cost savings compared to traditional WAN architectures:

• Centralized Control: SD-WAN centralizes the control of network traffic management through software. This allows for dynamic and intelligent routing decisions based on network conditions, application requirements, and policies.
• Overlay Technology: SD-WAN creates an overlay network on top of existing WAN connections, such as MPLS, broadband internet, or cellular networks. This overlay abstracts the underlying physical network, providing a more flexible and agile way to manage traffic.
• Dynamic Path Selection: SD-WAN can dynamically select the best path for each application's traffic based on parameters like latency, packet loss, and available bandwidth. It can also utilize multiple links simultaneously to optimize performance and reliability.

SD-WAN works by establishing encrypted tunnels between branch offices and data centers over any type of connection. These tunnels form a virtual overlay network on top of the existing physical infrastructure. Every SD-WAN solution, although specific setups may differ, relies on two key device types:

1. Edge Devices: These act as the entry points for user traffic into the SD-WAN network. They're essentially the on-site hardware responsible for routing traffic through the encrypted tunnels established across your network. Vendor names might vary, but their function remains the same.
2. Controller Devices: Think of these as the central nervous system of your SD-WAN. They handle a variety of tasks, sometimes even combined into a single unit depending on the vendor. Here's a breakdown of their key roles:

• Management: This is your main hub for controlling the entire SD-WAN solution. It allows you to configure settings, monitor network health, and troubleshoot any issues that arise.
• Routing: This role distributes routing information throughout the overlay network, ensuring traffic flows smoothly between edge devices.
• Configuration: When new edge devices join the network, they need their marching orders. The controller acts as a guide, providing the initial or complete configuration needed for them to function properly.
• Analytics: The controller gathers statistics from all the edge devices, giving you valuable insights into network performance. You can then export this data for further analysis or create user-friendly dashboards to easily monitor and troubleshoot any potential problems.

A recent IDC study reveals a surge in SD-WAN adoption, with nearly half (47%) of organizations already having made the switch. Furthermore, an additional 48% plan to implement SD-WAN solutions within the next two years. This rapid adoption highlights the growing recognition of SD-WAN's advantages for optimizing network performance and managing cloud connectivity.

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Let's delve into a head-to-head comparison of MPLS and SD-WAN, exploring their key features and how they differ in terms of connectivity, cost, management, performance, and security. This comparison will equip you to make an informed decision and select the WAN solution that best aligns with your organization's specific needs.

Here's a breakdown of the key differences between SD-WAN and MPLS:

Let’s take a closer look at how MPLS and SD-WAN handle bandwidth limitations, performance metrics, and reliability:

• MPLS: Bandwidth in MPLS is like a pre-ordered meal. You configure a specific amount of capacity upfront, and that's what you get. Scaling up requires modifying the MPLS circuit, which can be a time-consuming and potentially expensive process. This fixed approach might not be ideal for organizations with fluctuating bandwidth demands or those exploring cloud-based applications.
• SD-WAN: Think of SD-WAN as a buffet for your bandwidth needs. It allows you to combine multiple connections, like cable, fibre, and even cellular. This flexibility provides a much larger bandwidth pool to draw from. Additionally, SD-WAN utilizes software to dynamically identify and utilize the fastest available connection, ensuring efficient use of your bandwidth resources.

• MPLS: MPLS excels in providing low latency and minimal jitter, which are often backed by end-to-end Service Level Agreements (SLAs) with your MPLS provider. This makes MPLS a strong choice for applications that require real-time responsiveness, such as video conferencing or voice-over IP (VoIP).
• SD-WAN: SD-WAN offers significant flexibility in terms of performance optimization. SD-WAN solutions allow for a granular configuration of traffic prioritization. This means you can prioritize latency-sensitive applications like VoIP, ensuring they have the best possible performance across the available connections. As Internet infrastructure continues to improve in terms of robustness and scalability, the reliance on traditional SLAs might decrease with SD-WAN.

• MPLS: MPLS networks operate like a well-rehearsed play. Packets follow a predefined path, minimizing the chance of getting lost. This granular control over packet routing can be crucial for applications that cannot tolerate any packet loss.
• SD-WAN: In an SD-WAN environment, packet routing is more dynamic. Depending on how traffic is balanced and steered across different connections, there's a slight possibility of some packets being dropped. However, advancements in SD-WAN technology are continuously improving packet delivery reliability. Additionally, for many applications, a small amount of packet loss might be acceptable, especially when balanced against the cost savings and flexibility offered by SD-WAN.

Multiprotocol Label Switching (MPLS) has long been the trusted workhorse of Wide Area Networks (WANs). MPLS excels at delivering consistent, low-latency connections. Imagine a high-speed fibre optic lane for your data, bypassing congested areas and ensuring smooth, uninterrupted flow. This makes MPLS ideal for applications that demand real-time responsiveness, such as:

• Voice over IP (VoIP): Crystal-clear audio calls without jittery delays are crucial for seamless communication. MPLS prioritizes VoIP traffic, ensuring a frustration-free experience for your teams.
• Video Conferencing: Real-time video collaboration without choppy visuals or buffering is essential for effective remote meetings. MPLS guarantees the low latency or good latency needed for smooth video conferencing.
• High-Frequency Trading: In the fast-paced world of finance, even milliseconds can make a difference. MPLS ensures reliable and predictable data delivery for time-sensitive financial transactions.

MPLS offers several advantages for businesses seeking a reliable and high-performance WAN solution:

• Enhanced Uptime: MPLS automatically reroutes traffic in under 50 milliseconds, minimizing downtime and human error compared to manual provisioning.
• Improved User Experience: Prioritize critical traffic like VoIP calls for a smoother user experience.
• Boosted Efficiency: MPLS optimizes bandwidth utilization by allowing high-priority traffic to borrow resources from lower-priority streams.
• Simplified Management: MPLS hides network complexity, making it easier to manage like a single, extended LAN connection.
• Reduced Congestion: MPLS intelligently routes traffic to avoid congestion, minimizing latency and delays.

While SD-WAN and other modern networking technologies offer flexibility, cost savings, and scalability, MPLS networks continue to be valuable for businesses that prioritize performance, security, and reliability, especially in specific use cases where these factors are critical.

Some use cases include:

• Quality of Service (QoS) Requirements: MPLS networks are well-suited for applications that require strict Quality of Service guarantees, such as voice and video communications. MPLS can prioritize traffic and ensure low latency, minimal jitter, and high reliability, which are critical for real-time applications.
• Security and Privacy: MPLS offers inherent security benefits, making it suitable for businesses that prioritize data privacy and security. MPLS networks create private, isolated paths for traffic, reducing the risk of data interception or unauthorized access compared to public internet connections.
• Traffic Engineering and Performance Optimization: MPLS allows for efficient traffic engineering, enabling businesses to optimize network performance based on specific criteria such as application type, bandwidth requirements, and performance metrics. This level of control is beneficial for organizations with complex network architectures and diverse traffic patterns.
• Reliability and SLA Compliance: MPLS networks often come with Service Level Agreements (SLAs) that guarantee uptime, performance levels, and support responsiveness. This reliability is crucial for businesses that rely heavily on network connectivity for mission-critical operations and cannot afford downtime or performance fluctuations.
• Global Connectivity: For multinational corporations or businesses with geographically dispersed offices, MPLS networks can provide consistent and reliable connectivity across different regions. MPLS service providers often have extensive global coverage and can offer seamless connectivity between locations.
• Regulatory Compliance: In industries with stringent regulatory requirements, such as healthcare, finance, and government sectors, MPLS networks can help meet compliance standards by providing secure and controlled data transmission paths.

MPLS, while offering promises of high performance, isn't without its complexities. If your business is sticking to MPLS, maintaining a healthy and efficient MPLS network requires proactive monitoring to identify and address potential issues before they significantly impact your operations.

There are various tools available for MPLS network monitoring. Obkio's Network Monitoring Tool, with its network monitoring agents deployed at key locations, is a powerful solution for keeping your MPLS network running smoothly. Obkio's MPLS Monitoring feature utilizes synthetic traffic to measure network performance metrics and identify potential issues.

Here's why monitoring your MPLS network is crucial:

• Ensuring Performance: MPLS excels at consistent performance, but network congestion or hardware malfunctions can disrupt this stability. Monitoring key metrics like latency, jitter, and packet loss allows you to detect performance degradation and take corrective action before it affects your critical applications.
• Identifying Bottlenecks: MPLS prioritizes traffic, but bottlenecks can still occur within the network. Monitoring helps pinpoint these congested areas, allowing you to optimize resource allocation and maintain smooth data flow.
• Proactive Troubleshooting: MPLS networks can be intricate. Monitoring tools can provide valuable insights into network behaviour, enabling you to proactively troubleshoot issues and prevent downtime.

Learn more about How to Monitor MPLS networks! in our full blog post.

Or, try for yourself with Obkio's free 14-day trial!

The future of WANs is undeniably shifting towards software-defined solutions. SD-WAN adoption is expected to reach 92% of companies and 64% of sites by 2026. This rapid growth is driven by the numerous advantages SD-WAN offers over traditional MPLS networks, particularly in terms of:

• Efficiency (cited by 38% of adopters)
• Cost savings (38%)
• Agility (34%)

Let's delve into the specific benefits that make SD-WAN such a compelling choice for businesses in today's dynamic cloud-centric landscape:

• Cost Savings: Cloud adoption often leads to unpredictable spikes in WAN traffic, driving up costs with MPLS as you scramble for additional bandwidth. SD-WAN shines here by allowing you to leverage cost-effective internet connections alongside MPLS or other private lines. This flexibility helps you optimize spending without compromising performance.
• Unmatched Agility: SD-WAN's infrastructure allows for swift changes to your network configuration within minutes. This contrasts with MPLS, where modifying network topology can take months due to the complexities of managing firewalls and devices across various data centers and branches.
• Performance Boost: SD-WAN employs intelligent traffic steering to prioritize critical business applications. Additionally, it establishes direct tunnels, eliminating the need for "backhauling" traffic through a central location. This streamlines data flow, minimizes latency and enhances the overall user experience. MPLS, on the other hand, still needs to route all traffic through a central security gateway, potentially introducing bottlenecks and delays.
• Effortless Management: Imagine zero-touch deployment! Advanced SD-WAN solutions provide this capability, automating the provisioning and configuration of any router on your network. MPLS, being hardware-centric, relies on manual configuration, a time-consuming and error-prone process.
• Streamlined Operations: SD-WAN simplifies network management from both a technical and operational standpoint. Being software-defined, it's inherently easier to implement and manage for IT teams compared to hardware-based MPLS. Automation features further reduce the need for manual troubleshooting. For instance, with an MPLS failure, IT needs to manually identify the source and reroute traffic. SD-WAN automates this process, improving efficiency. Reduced reliance on on-site IT personnel at remote locations is another benefit. SD-WAN empowers central IT teams with complete visibility and control through cloud-based, centralized administration, simplifying the management of geographically dispersed resources.

While MPLS offers private network connections, it has limitations when it comes to built-in data protection. Misconfigurations can leave MPLS networks vulnerable to breaches and external attacks. Additionally, the complexity of managing larger MPLS deployments makes it challenging to enforce consistent security policies across the entire network.

This is where SD-WAN shines. By design, SD-WAN offers several security advantages:

• Stronger Foundations: Security is embedded within SD-WAN from the ground up, unlike MPLS which relies on separate security solutions. This proactive approach helps eliminate potential security gaps.
• End-to-End Encryption: SD-WAN encrypts data tunnels from end-to-end, safeguarding sensitive information as it travels across your network.
• Seamless Integration: SD-WAN integrates effortlessly with cloud-delivered security services, forming a holistic Secure Access Service Edge (SASE) architecture. This comprehensive approach strengthens your overall security posture.

The growing complexity of network management is a reality for many businesses. A recent study revealed that only 23% of organizations feel confident managing their WAN security in-house. The remaining 77% rely on either fully managed or co-managed solutions from Managed Security Services Providers (MSSPs). Furthermore, nearly half (48%) of those utilizing co-managed services anticipate offloading even more IT responsibilities to their MSSP partners.

This trend highlights the increasing demand for expert security management. SD-WAN, with its inherent security features and ease of integration with MSSP offerings, becomes an attractive choice. Moreover, many MSSPs, like EcoSysIP, leverage tools like Obkio Network Performance Monitoring software to monitor their own networks and those of their clients.

The Takeaway:

SD-WAN offers a cost-effective way to enhance your network security posture by integrating it from the outset. Partnering with a qualified MSSP allows you to leverage their expertise and specialized security solutions tailored to your organization's specific needs. This combined approach ensures optimal network performance and robust security for your business-critical applications.

While SD-WAN empowers businesses with greater visibility and control over network traffic compared to MPLS, it doesn't necessarily provide a complete picture of network health. 75% of IT professionals struggle to gain sufficient insights from native SD-WAN monitoring features.

To ensure optimal performance and identify potential bottlenecks, your business needs a dedicated SD-WAN Network Performance Monitoring tool to monitor the performance of SD-WAN service before, during and after your SD-WAN migration.

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The Benefits of SD-WAN Network Performance Monitoring:

Imagine having real-time insights into your network performance from the perspective of your end-users – that's the power of NPM tools. These solutions offer a multitude of advantages:

• Proactive Problem Identification: Network administrators can proactively identify and troubleshoot performance issues before they significantly impact users. This translates to minimized downtime and improved user experience.
• End-User Experience Insights: NPM tools provide valuable data on how network performance translates to user experience for critical applications like video conferencing or VoIP calls. This allows for targeted optimization efforts.
• Performance Baselines and Troubleshooting: Establishing performance baselines helps you identify deviations and pinpoint potential problem areas when performance dips below expectations.

Many organizations may not possess the necessary technical skills to handle SD-WAN deployments and fully exploit the technology's potential benefits. This highlights the growing need for network monitoring solutions that are not only powerful but also user-friendly and easy to manage, or for organizations to explore partnerships with managed service providers (MSPs) specializing in SD-WAN implementation and management.

To learn more about setting up Obkio to monitor your specific SD-WAN network, visit our comprehensive guide: How To Monitor SD-WAN Networks: Mastering SD-WAN Network Monitoring.

Traditional monitoring tools often leave IT professionals grappling with limited visibility into their SD-WAN networks. Here's where Obkio steps in. Obkio's Network Performance Monitoring (NPM) tool is specifically designed for the complexities of modern SD-WAN environments.

Obkio goes beyond basic monitoring, offering a comprehensive view of your entire SD-WAN network. This includes branch offices, data centers, and cloud-based resources. With this panoramic perspective, you can pinpoint performance issues across any segment of your network infrastructure, ensuring proactive troubleshooting and optimal performance.

Unlike some monitoring tools that rely solely on existing network traffic, Obkio utilizes a different approach. It strategically uses lightweight synthetic traffic generated by monitoring agents deployed across your network sites. This synthetic traffic acts as a diagnostic tool, revealing underlying issues that might otherwise go unnoticed.

By combining end-to-end visibility with the power of synthetic traffic monitoring, Obkio empowers you to take complete control of your SD-WAN network. You can identify and resolve performance bottlenecks before they disrupt your users, ensuring a consistently smooth and efficient network experience.

Here's how Obkio SD-WAN monitoring tool empowers you to stay on top of your network performance:

• Cloud-Based Visibility: Obkio is a cloud-based solution, offering real-time, centralized visibility into network performance from an end-user perspective. This eliminates the need for complex on-premise installations.
• User-Friendly Interface: Designed with user-friendliness in mind, Obkio's interface simplifies network monitoring for businesses of all sizes. Even small and medium-sized enterprises without dedicated IT staff can leverage Obkio effectively.
• Vendor-Neutral Compatibility: No need to rip and replace your existing network infrastructure. Obkio works seamlessly with all major network vendors, ensuring compatibility with your current SD-WAN setup. Monitor all SD-WAN networks like:

1. Fortinet SD-WAN
2. Cisco SD-WAN
3. Fortigate SD-WAN
4. Viptela SD-WAN
5. Velocloud SD-WAN
6. Citrix SD-WAN

• Real-Time Monitoring and Alerts: Obkio provides continuous performance monitoring, along with real-time alerts for any performance issues that arise. This allows network administrators to take swift action and minimize disruptions.

Obkio's combination of ease of use, vendor neutrality, and real-time performance insights empowers businesses with a powerful tool to ensure their SD-WAN delivers optimal performance and a consistently exceptional user experience.

• 14-day free trial of all premium features
• Deploy in just 10 minutes
• Monitor performance in all key network locations
• Measure real-time network metrics
• Identify and troubleshoot live network problems

Many businesses are choosing to migrate from MPLS to SD-WAN for several reasons like its ability to deliver cost savings by leveraging affordable Internet connections alongside or instead of expensive MPLS links, enhance agility and performance through dynamic traffic routing and application-based policies, and optimize cloud connectivity for improved user experience.

While many people have been claiming that MPLS is dead and SD-WAN is the future, how can you know if SD-WAN or MPLS is right for your business?

1. Business Needs:

• Application Requirements: Analyze the criticality and sensitivity of your applications. Do they require low latency, consistent bandwidth, or high network availability? Business operations heavily reliant on real-time applications, video conferencing, or cloud services will have different needs than those focused on static data transfer. Consider the performance implications of each technology choice.
• Security and Compliance: Clearly define your security and compliance requirements. How sensitive is your data? Are there industry regulations or privacy concerns to address? Assess the security features and capabilities offered by both SD-WAN and MPLS, including encryption, traffic segmentation, and compliance with relevant industry standards.

2. Network Geography: Consider the distribution of your locations and the impact of latency on user experience.

3. Budget Constraints: Weigh the upfront costs of MPLS against the long-term cost savings and flexibility of SD-WAN.

4. Hybrid Approach: For organizations with diverse network requirements, a hybrid approach combining MPLS and SD-WAN can be an option. This allows you to leverage the strengths of both technologies:

• Utilize MPLS for mission-critical applications requiring guaranteed performance.
• Use SD-WAN for branch offices and cloud connectivity to benefit from cost-effectiveness and flexibility.

While SD-WAN is gaining traction, MPLS remains a viable option for specific scenarios:

• Private Wide Area Networks (WANs): MPLS is well-suited for organizations with multiple remote offices requiring a secure and reliable connection to a central data center.
• Improved Network Performance: MPLS offers low latency and prioritizes critical applications, making it ideal for real-time communication like VoIP and video conferencing.
• Prioritization and SLAs: MPLS guarantees traffic prioritization and service level agreements (SLAs), ensuring consistent application performance.

SD-WAN offers significant advantages for modern business needs:

• Secure and Optimized Connectivity: Securely connect branches, data centers, and cloud resources with multiple network connections.
• Application Performance: Prioritize and optimize traffic flow for improved performance of cloud-based applications.
• Cost Optimization: Reduce reliance on expensive MPLS circuits by utilizing cost-effective broadband internet connections.
• Simplified Network Management: Centralize management and control of your network for increased agility.
• Enhanced Security: Integrate security capabilities into your network infrastructure for robust protection. These include Next-generation firewalls (NGFW), Secure web gateways (SWG), and Cloud access security brokers (CASB).

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If you are planning to migrate from MPLS to SD-WAN, it's important to monitor the migration to ensure that everything goes smoothly, and to ensure that you're getting the performance improvements that you were promised.

Obkio is the perfect companion throughout your SD-WAN migration journey:

• Before migration: Assess your existing MPLS network's performance baseline to identify potential bottlenecks.
• During migration: Proactively identify and troubleshoot any configuration errors or unforeseen issues that might arise.
• After migration: Monitor your SD-WAN's performance and ensure it delivers the expected efficiency and user experience.

To ensure a smooth transition and maximize the benefits of SD-WAN, in-depth performance monitoring throughout the MPLS to SD-WAN migration process is crucial. Explore our guide: How to Monitor MPLS to SD-WAN Migrations.

Obkio's versatility shines through numerous successful use cases. We've helped companies overcome various migration roadblocks, from configuration errors to telecom throttling. Regardless of your specific challenge during WAN migration, Obkio has a solution for you.

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Ultimately, the best WAN solution depends on your specific needs. Organizations with a high volume of mission-critical traffic and strict requirements might find MPLS to be the most reliable option. Businesses seeking a more cost-effective and adaptable solution for cloud-based applications may find SD-WAN to be a perfect fit. Many companies even explore hybrid approaches, combining MPLS for critical traffic with SD-WAN for branch offices.

No matter which WAN technology you choose, proactive network performance monitoring is essential. Both MPLS and SD-WAN require vigilance to ensure they are operating at peak efficiency. Tools like Obkio's network monitoring solutions empower you to identify and address potential issues before they disrupt your operations. By keeping your WAN optimized, you can guarantee a seamless user experience, maximize productivity, and ensure your business stays connected and thriving.

Whether it's MPLS or SD-WAN, Obkio has the Monitoring Tool For You!

Networks may be complex. But Obkio makes network monitoring easy. Monitor, measure, pinpoint, troubleshoot, and solve network problems for all network types.

• 14-day free trial of all premium features
• Deploy in just 10 minutes
• Monitor performance in all key network locations
• Measure real-time network metrics
• Identify and troubleshoot live network problems