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[SD-WAN vs. VPN: Use Cases, Differences, \& When You Need Both](https://www.paloaltonetworks.com/cyberpedia/sd-wan-vs-vpn?ts=markdown) Table of contents * [What is a VPN?](#what-is-a-vpn) * [What is SD-WAN?](#what-is-sd-wan) * [How are SD-WAN and VPN different?](#how-are-sd-wan-and-vpn-different) * [Can SD-WAN and VPN work together?](#can-sd-wan-and-vpn-work-together) * [Is SD-WAN replacing VPN?](#is-sd-wan-replacing-vpn) * [When is VPN enough, when is SD-WAN necessary, and do you usually need both?](#when-is-vpn-enough-when-is-sd-wan-necessary-and-do-you-usually-need-both) * [SD-WAN vs. VPN FAQs](#sd-wan-vs-vpn-faqs) # SD-WAN vs. VPN: Use Cases, Differences, \& When You Need Both 5 min. read Table of contents * [What is a VPN?](#what-is-a-vpn) * [What is SD-WAN?](#what-is-sd-wan) * [How are SD-WAN and VPN different?](#how-are-sd-wan-and-vpn-different) * [Can SD-WAN and VPN work together?](#can-sd-wan-and-vpn-work-together) * [Is SD-WAN replacing VPN?](#is-sd-wan-replacing-vpn) * [When is VPN enough, when is SD-WAN necessary, and do you usually need both?](#when-is-vpn-enough-when-is-sd-wan-necessary-and-do-you-usually-need-both) * [SD-WAN vs. VPN FAQs](#sd-wan-vs-vpn-faqs) 1. What is a VPN? * [1. What is a VPN?](#what-is-a-vpn) * [2. What is SD-WAN?](#what-is-sd-wan) * [3. How are SD-WAN and VPN different?](#how-are-sd-wan-and-vpn-different) * [4. Can SD-WAN and VPN work together?](#can-sd-wan-and-vpn-work-together) * [5. Is SD-WAN replacing VPN?](#is-sd-wan-replacing-vpn) * [6. When is VPN enough, when is SD-WAN necessary, and do you usually need both?](#when-is-vpn-enough-when-is-sd-wan-necessary-and-do-you-usually-need-both) * [7. SD-WAN vs. VPN FAQs](#sd-wan-vs-vpn-faqs) The difference between SD-WAN and VPN is that SD-WAN uses software-defined policies to manage and optimize traffic across multiple WAN links, while VPN creates encrypted tunnels to secure communication between two points. SD-WAN provides centralized control and performance monitoring. VPN focuses only on securing traffic in transit. ## What is a VPN? A [virtual private network, or VPN](https://www.paloaltonetworks.com/cyberpedia/what-is-a-vpn), is a secure way to connect devices or networks over the internet. It works by creating an encrypted tunnel between two points. All traffic that passes through the tunnel is scrambled so outsiders can't read it. The tunnel also hides the original source and destination of the traffic, which adds another layer of privacy. ![The diagram is titled 'How a business VPN works' and shows four user locations on the left labeled Mobile, Home, Branch, and Retail, each connected to the internet through a small circular icon with 'VPN client' text for Mobile. A green line labeled 'Secure IPSEC tunnel' connects these points through the internet to a firewall icon. To the right, a box labeled 'Enterprise environment' contains three stacked icons representing Cloud services, a Data center, and Data center apps.](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/How-a-VPN-works.png "The diagram is titled 'How a business VPN works' and shows four user locations on the left labeled Mobile, Home, Branch, and Retail, each connected to the internet through a small circular icon with 'VPN client' text for Mobile. A green line labeled 'Secure IPSEC tunnel' connects these points through the internet to a firewall icon. To the right, a box labeled 'Enterprise environment' contains three stacked icons representing Cloud services, a Data center, and Data center apps.") Why is this useful? On a public network, traffic is open to interception. A VPN prevents that by ensuring the connection behaves as if it were private. In other words, it extends a secure line from the user's device to the organization's network. At a high level, there are two main types of VPNs. A [remote access VPN](https://www.paloaltonetworks.com/cyberpedia/what-is-a-remote-access-vpn) allows individual users to connect securely from anywhere, whether at home, on the road, or in a coffee shop. A [site-to-site VPN](https://www.paloaltonetworks.com/cyberpedia/what-is-a-site-to-site-vpn) links entire office networks together, so branch locations can operate as if they're part of the same corporate network. Protocols like [IPsec](https://www.paloaltonetworks.com/cyberpedia/what-is-ipsec) and SSL/TLS are commonly used to build these tunnels. Each ensures traffic is encrypted and authenticated, though they differ in how they operate. Important: VPNs provide security for traffic. But they don't manage performance, optimize paths, or control how traffic is routed beyond [encryption](https://www.paloaltonetworks.com/cyberpedia/data-encryption). That's why they're often paired with broader networking solutions that can address those needs. | ***Further reading:*** * [*VPN Security: Are VPNs Safe and Secure?*](https://www.paloaltonetworks.com/cyberpedia/vpn-security) * [*VPN Alternatives for Remote Access*](https://www.paloaltonetworks.com/cyberpedia/vpn-alternatives-for-remote-access) ## What is SD-WAN? A software-defined wide area network, or SD-WAN, is a modern way to manage and secure WAN traffic. ![Diagram labeled 'SD-WAN architecture' showing six branch office icons, three on each side, connected to a central data center box at the bottom. The branches and data center also connect upward to a box labeled 'Internet' that contains cloud service logos including AWS, Azure, Google Cloud, Dropbox, Salesforce, and Workday. Green lines represent MPLS, purple lines represent cellular, and blue lines represent broadband, all shown in the key at the bottom.](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/SD-WAN-architecture.png) It uses software-defined policies to decide how traffic moves across available links. These links can include broadband, [MPLS](https://www.paloaltonetworks.com/cyberpedia/mpls-what-is-multiprotocol-label-switching), or cellular. The software continuously monitors link performance and steers traffic along the best available path. ![Diagram titled 'SD-WAN dynamic path selection and traffic steering' showing a branch office at the top connected to two pathways. On the left, application thresholds lead to SD-WAN traffic steering, which includes session load distribution, path quality profile, and traffic distribution profile. These link to a VPN virtual interface labeled IPSec interfaces in red, with arrows pointing through a private network to headquarters. On the right, a DIA virtual interface labeled Ethernet interfaces in blue connects through a private network and the public internet to Internet/SaaS. Labels note metrics such as path latency, jitter, and packet loss, with top down priority indicated in the flow.](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/Dynamic-path-selection-and-traffic-steering.png) Essentially: It adapts in real time. And ensures critical applications get the reliability they need. Why does this matter? Traditional WANs depend on static routing and fixed circuits. That model works--but struggles with cloud applications and distributed users. SD-WAN was designed to solve that. It centralizes control, so administrators can set policies once and apply them everywhere. Which means changes roll out faster and more consistently across all sites. ![The diagram illustrates centralized management in SD-WAN. It shows an SD-WAN controller at the center, managing data flows between the MPLS network, the internet, and cloud services. On the left, a branch office connects to the SD-WAN controller through traditional WAN routers. The middle section displays various types of connectivity, including fiber, dedicated internet access, MPLS, and 4G, all managed by the SD-WAN controller. On the right, the HQ/DC/DR is also connected via traditional WAN routers. Control plane data paths are indicated by yellow dashed lines, while data plane paths are shown as solid red lines.](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/SD-WAN-centralized-management.pngg) It also incorporates security into its overlay. SD-WAN often uses [VPN tunnels](https://www.paloaltonetworks.com/cyberpedia/what-is-a-vpn-tunnel) to encrypt data between sites. It can integrate additional controls such as [firewalls](https://www.paloaltonetworks.com/cyberpedia/what-is-a-firewall), [segmentation](https://www.paloaltonetworks.com/cyberpedia/what-is-network-segmentation), and traffic inspection. The goal is straightforward. Provide flexible, policy-driven connectivity that supports branch offices, cloud workloads, and remote sites. Unlike a VPN, which is focused on secure tunnels, SD-WAN manages the entire WAN fabric. It delivers not just encryption but also visibility, control, and performance optimization across the network. | ***Further reading:** [What Is SD-WAN Security? | SD-WAN Security Considerations](https://www.paloaltonetworks.com/cyberpedia/what-is-sd-wan-security)* ## How are SD-WAN and VPN different? A VPN and an SD-WAN both secure traffic. But they do so in very different ways. | Feature | SD-WAN | VPN | |----------------------|---------------------------------------------------------|------------------------------------------------| | **Scope** | Manages and secures traffic across the entire WAN | Secures traffic between two endpoints | | **Primary function** | Uses software-defined policies to optimize traffic | Provides encrypted tunnels for confidentiality | | **Control** | Centralized visibility, policy, and orchestration | Point-to-point, little centralized management | | **Performance** | Dynamically selects best path based on performance | Does not manage path or performance | | **Typical use case** | Multi-site networks, cloud workloads, large enterprises | Remote access or connecting a few sites | | **Integration** | Often incorporates VPN tunnels within its overlay | Works as a standalone tool | A VPN focuses on confidentiality between two points. SD-WAN provides centralized visibility and control across the WAN. ![Architecture diagram titled 'SD-WAN vs. VPN' divided into two sections. The top section labeled 'SD-WAN' shows a branch office on the left connected to SD-WAN routers, which link to the internet through DSL, fiber, and LTE. A cloud icon labeled 'SD-WAN controller' appears above the internet. On the right, HQ data center or cloud provider connects through SD-WAN routers and DSL or fiber. The bottom section labeled 'VPN' shows point A on the left connected to a VPN device, which sends a data packet across the internet to another VPN device, ending at point B on the right.](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/SD-WAN-vs-VPN.png "Architecture diagram titled 'SD-WAN vs. VPN' divided into two sections. The top section labeled 'SD-WAN' shows a branch office on the left connected to SD-WAN routers, which link to the internet through DSL, fiber, and LTE. A cloud icon labeled 'SD-WAN controller' appears above the internet. On the right, HQ data center or cloud provider connects through SD-WAN routers and DSL or fiber. The bottom section labeled 'VPN' shows point A on the left connected to a VPN device, which sends a data packet across the internet to another VPN device, ending at point B on the right.") Put simply: VPN is a tool. SD-WAN is a traffic management strategy, with varying levels of security features depending on the solution. Think of it like this. A VPN is a lock on the front door. It protects the entry point. SD-WAN is the entire building's security and traffic system. It not only locks doors but also directs visitors, reroutes them if a hallway is blocked, and keeps track of who goes where. That's the key difference. VPN handles secure connectivity in isolation. SD-WAN orchestrates the entire WAN, often using VPN tunnels inside its fabric to secure branch-to-branch or branch-to-cloud connections. | ***Further reading:*** * [*What Is SD-WAN Architecture? Components, Types, \& Impacts*](https://www.paloaltonetworks.com/cyberpedia/sd-wan-architecture) * [*How Does a VPN Work?*](https://www.paloaltonetworks.com/cyberpedia/how-does-a-vpn-work) ## Can SD-WAN and VPN work together? Yes. SD-WAN and VPN aren't mutually exclusive. As explained, SD-WAN often relies on encrypted tunnels that resemble VPN connections. These tunnels secure the overlay fabric between sites, branches, and [data centers](https://www.paloaltonetworks.com/cyberpedia/what-is-a-data-center). In practice, the underlying mechanism for this encryption is frequently IPsec---the same protocol used in traditional VPNs. Which means SD-WAN incorporates VPN-like functionality as part of its design. On the other hand, organizations may still need VPN outside of the SD-WAN fabric. For instance, a remote access VPN lets individual users connect securely from laptops or mobile devices. SD-WAN can then treat that traffic like any other flow, applying policies and steering it over the best available path. Site-to-site VPNs also fit naturally within SD-WAN overlays, adding encryption while benefiting from centralized orchestration. Keep in mind: integration is common. Many enterprises run SD-WAN for branch and cloud connectivity while continuing to use VPN for mobile users. The two technologies complement each other instead of competing. ## Is SD-WAN replacing VPN? Not exactly. VPN is still widely used. A VPN remains a common way for remote workers to connect securely to corporate networks. That capability is still essential when employees need point-to-point secure access. On the other hand, SD-WAN provides an expanded model. It can use VPN tunnels inside its overlay, but it adds intelligence: path selection, performance monitoring, and orchestration across multiple transport types. The takeaway: VPN is still part of the toolbox. But SD-WAN integrates it into a larger design for branch, cloud, and data center connectivity. The reality is that VPN's role is shifting. With more applications in the cloud, the hub-and-spoke model of traditional remote access VPN is less efficient. SD-WAN, and increasingly [SASE](https://www.paloaltonetworks.com/cyberpedia/what-is-sase), address these limitations by steering traffic directly and enforcing consistent security. The trend points to VPN becoming less central. But not disappearing. It continues to serve remote access and site-to-site use cases while SD-WAN takes the lead in overall WAN architecture. | ***Further reading:** [Types of SD-WAN Deployment Models: A Complete Guide](https://www.paloaltonetworks.com/cyberpedia/sd-wan-deployment-models)* ## When is VPN enough, when is SD-WAN necessary, and do you usually need both? ![Architecture diagram titled 'Do organizations need SD-WAN, VPN, or both?' showing a decision flow with three possible outcomes. The first decision box asks 'Is the organization small with mostly remote workers?' with a 'Yes' arrow leading right to a red circle containing a VPN icon and text 'VPN is often enough.' The 'No' arrow points down to a second decision box labeled 'Does the organization have multiple sites or rely on cloud apps?' with a 'Yes' arrow leading left to a blue circle containing an SD-WAN icon and text 'SD-WAN is necessary.' The 'No' arrow points down to a third decision box labeled 'Most organizations today?' with an arrow leading right to overlapping blue and red circles with SD-WAN and VPN icons and text 'They use both.'](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/sd-wan-vs-vpn/Do-organizations-need-both-SD-WAN-and-VPN.png "Architecture diagram titled 'Do organizations need SD-WAN, VPN, or both?' showing a decision flow with three possible outcomes. The first decision box asks 'Is the organization small with mostly remote workers?' with a 'Yes' arrow leading right to a red circle containing a VPN icon and text 'VPN is often enough.' The 'No' arrow points down to a second decision box labeled 'Does the organization have multiple sites or rely on cloud apps?' with a 'Yes' arrow leading left to a blue circle containing an SD-WAN icon and text 'SD-WAN is necessary.' The 'No' arrow points down to a third decision box labeled 'Most organizations today?' with an arrow leading right to overlapping blue and red circles with SD-WAN and VPN icons and text 'They use both.'") A VPN and SD-WAN serve different purposes. So the real question is not which is better, but which is appropriate for the situation. ### When is VPN enough? VPN is often sufficient in smaller environments. If the primary need is secure remote access, a VPN can handle it. For organizations with only a few sites and minimal reliance on cloud applications, it may provide all the connectivity required. ### When is SD-WAN necessary? SD-WAN becomes important as networks grow more complex. Multiple branch offices, widespread SaaS adoption, and hybrid or multi-cloud environments create demands that exceed what simple VPN links can handle. In these cases, network-wide policy enforcement and dynamic traffic control make SD-WAN the more effective choice. ### Do you usually need both? Yes. Most enterprises use them together. VPN covers remote access for individual users, while SD-WAN manages connectivity and performance across sites and cloud resources. The combination balances security, scalability, and consistency. ![Icon of a book](https://www.paloaltonetworks.com/content/dam/pan/en_US/images/cyberpedia/what-is-rlhf/icon-rlhf-document.svg) LEARN MORE ABOUT SD-WAN IN ACTION Get *Zero Trust Branch for SD-WAN For Dummies* and see how SD-WAN architecture extends into branch security and SASE integration. --- [Download eBook](https://www.paloaltonetworks.com/resources/ebooks/for-dummies-zero-trust-branch-for-sd-wan) ## SD-WAN vs. VPN FAQs #### What are the benefits of SD-WAN over VPN? SD-WAN goes beyond encryption. It provides centralized control, dynamic path selection, and visibility across multiple links. VPN secures point-to-point traffic, while SD-WAN optimizes performance, scales across sites, and integrates cloud connectivity. #### Is site to site VPN SD-WAN? No. A site-to-site VPN encrypts traffic between two networks. SD-WAN is a broader architecture that can use VPN tunnels but adds centralized management, traffic steering, and optimization across all WAN links. ### What is the difference between WAN and VPN? WAN is the network connecting sites, data centers, and cloud services. VPN is a secure tunneling method within or across a WAN. In other words, WAN is the transport, while VPN is a security overlay that protects data moving over it. Related content [Podcast: Packet Pushers | Why SD-WAN is the Secret to SASE Success Hear why SD-WAN is the foundational component of a SASE solution.](https://media.blubrry.com/packetpushers/media.blubrry.com/2903570/ins.blubrry.com/2903570/TB_Palo_Alto_0701-SD-WAN.mp3) [Podcast: Packet Pushers | Can SD-WAN Solve Latency Issues for Modern Applications? Get the facts on how application acceleration helps deliver SaaS \& cloud apps with the highest level of performance.](https://media.blubrry.com/packetpushers/media.blubrry.com/2903570/ins.blubrry.com/2903570/TB_0120_PANW.mp3) [eBook Why Next-Gen SD-WAN Is the Solution for You: Discover how integrated next-gen SD-WAN improves user experience, control, and visibility.](https://start.paloaltonetworks.com/why-next-gen-sd-wan-is-the-solution-for-you.html) [eBook: The Branch of the Future, Today Find out how to securely enable branch modernization with Prisma SD-WAN.](https://www.paloaltonetworks.com/resources/ebooks/securely-enable-branch-modernization-with-prisma-sd-wan) ![Share page on facebook](https://www.paloaltonetworks.com/etc/clientlibs/clean/imgs/resources/facebook-circular-icon.svg) ![Share page on linkedin](https://www.paloaltonetworks.com/etc/clientlibs/clean/imgs/resources/linkedin-circular-icon.svg) [![Share page by an email](https://www.paloaltonetworks.com/etc/clientlibs/clean/imgs/resources/email-circular-icon.svg)](mailto:?subject=SD-WAN%20vs.%20VPN%3A%20Use%20Cases%2C%20Differences%2C%20%26%20When%20You%20Need%20Both&body=SD-WAN%20uses%20software-defined%20policies%20to%20manage%20and%20optimize%20WAN%20traffic%2C%20while%20a%20VPN%20creates%20encrypted%20tunnels%20to%20secure%20communication%20between%20two%20points.%20at%20https%3A//www.paloaltonetworks.com/cyberpedia/sd-wan-vs-vpn) Back to Top {#footer} ## 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