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  • Writer's pictureEric Brackett

What is WAN? The Ultimate Guide for Businesses


What is WAN (Wide Area Network) promotional image.

Ensuring seamless communication and data accessibility across multiple locations is crucial for the success of any multi-site enterprise. This guide explores what WAN (Wide Area Network) is and how WAN networks can benefit multi-site businesses looking to enhance their network performance across all locations.


Before we start, it is important that you understand the difference between WAN and LAN (Local Area Network). 


What is WAN?

A WAN is a large network that connects computers and devices over a wide geographical area, like across cities, states, or even countries. It allows various locations, such as office branches, to communicate and share information with each other.


What is LAN?

LAN is a smaller network that connects computers and devices within a limited area, like within a single building or office. It allows devices like computers, printers, and servers to communicate and share resources quickly and easily.



WAN vs LAN: What’s The Difference?  


Main Difference 

WAN  

LAN  

Uses 

Designed to provide network connection across multiple sites and long distances.  

 

Better for multi-site organizations that wish to maintain a secure and efficient network.  

Tied up in a contained area that shares a singular point of connectivity.  

 

Ideal for networking in a single building.  

Speed 

Generally, it offers slower transfer speeds due to the longer distances that data needs to travel.  

Faster speeds due to the network being confined to a small area.  

Cost 

Higher costs due to the need for extensive, more complex network infrastructure.  

Less expensive to install and maintain due to its simpler design and IT infrastructure requirements.  

Technology 

Requires technologies such as:  

  • MPLS 

  • Based Lines 

  • Satellite Communications 

 

Making it more expensive and complex than WAN 

Uses simpler technologies such as:  

  • Wi-Fi 

  • Ethernet  

 

Making it LAN cheaper and easier to maintain. 

Security  

 

It’s easier to maintain and secure due to its increased simplicity and controlled environment.  

Requires robust security measures and management practices.  

Equipment 

WAN architecture usually uses routers, LANs, and switches to work.  

LAN usually requires a router, multiple LANs, and switches.  

 

What is WAN Connectivity Used For?

Wide Area Network (WAN) connects multiple locations, employees, and resources within each other enabling businesses to share vital business information regardless of location. This allows multi-site and cloud-based businesses to:


  • Improve business communications and resource sharing across multiple locations.

  • Give access to secure data storage and ensure data is backed up remotely.

  • Efficiently run cloud-based applications while supporting remote work.

  • Run and support internal business applications efficiently.


What is a WAN Router? 

A WAN router (also called edge or border router) is the device in charge of directing your network traffic across various locations within your wide area network. Its main job is to connect your internal network to your internet providers' network while ensuring data travels seamlessly and efficiently.  


What are WAN protocols? 

WAN protocols are the rules that govern how data is going to be transmitted and communicated across a network over long distances. There are 4 main wide area network protocols:  


  1. Frame Relay  

  1. Asynchronous Transfer Mode (ATM) 

  1. Point-to-Point Protocol (PPP) 

  1. Multiprotocol Label Switching (MPLS) 


Frame Relay 

Frame relay is the oldest technology used to transmit data over a network. Frame relay packages data into smaller units called “frames” and sending data through a private line to a connection point in the network known as “frame relay node” 


Asynchronous Transfer Mode (ATM) 

Instead of transforming data into frames, ATM formats data into small, fixed units called “cells.” Each cell contains 53mb of data. Once data is divided into a “cell,” it is sent through the network and then rearranged at the destination making ATM technology useful for voice and video transfer.  


Point-to-Point Protocol (PPP) 

PPP provides a direct connection between two network nodes. It is often used for internet access and supports authentication, encryption, and compression. 


Multiprotocol Label Switching (MPLS) 

An MPLS directs data from one network node to the next based on short path labels rather than long network addresses. MPLS can handle a variety of protocols, making it versatile for routing and traffic engineering. 


Each protocol has its unique advantages and disadvantages depending on your unique needs and requirements. 


What is SD-WAN? 

SD-WAN (Software Defined WAN) is a virtual architecture that leverages software to connect LANs (Local Area Network) across long distances. By leveraging tools like virtualization, network overlay, and the ability to create application-level policies allows SD-WAN to: 


  • Reduce operational costs 

  • Improve data transfer 

  • Simplify network management and increase efficiency.  


How Does Wide Area Networks (WAN) Works? 

As previously mentioned, a Wide Area Network (WAN) allows organizations to connect their resources across multiple locations, whether those resources are in on-premises data centers, branch offices, or virtual private clouds (VPCs).  


Building a private network across vast geographic areas is impractical and expensive, most companies rent network infrastructure from third-party service providers. Here's how distinct types of connections work within a WAN: 


Leased Lines 

A leased line is a dedicated, direct connection between two LANs (Local Area Networks) that a company can rent from a large network provider like internet providers. 


How Leased Lines Work 

Leased lines provide a reliable and private connection, but they may not always be physical cables. Sometimes, they are virtual connections set up by the service provider over their existing network infrastructure. 


Tunneling 

Tunneling is a technique used to securely send data over the public internet by encrypting it and encapsulating it within another data packet. 


How Tunneling Works 

When you use tunneling, you create a Virtual Private Network (VPN) that allows you to send encrypted data from one location to another as if they were on the same private network allowing you to ensure security and privacy while using the public internet. 


Multiprotocol Label Switching (MPLS) 

MPLS is a method for speeding up network traffic by routing it based on labels rather than long network addresses. 


How MPLS Works:  

MPLS directs data along the most efficient path across a network by using predefined labels, which helps improve performance, especially for critical applications.


Software-Defined WAN (SD-WAN) 

SD-WAN uses software to control network traffic and it’s one of the most valuable solutions in today’s market! Recent statistics show that the SD-WAN market size is projected to escalate from $3,514.6 million in 2022 to $30,907.6 million by 2030, exhibiting a growth rate of 31.2% during the period 2022–2030. (source) 


How Does SD-WAN Works? 

SD-WAN abstracts the network functions into a software layer, allowing it to route traffic over any available connection, including inexpensive broadband internet. This flexibility can reduce costs and make the network more adaptable to changing needs. 


What is WAN Optimization? 

WAN optimization is the set of techniques and technologies designed to improve the performance of a Wide Area Network (WAN) by enhancing key network performance metrics such as: 


  • Throughput: The amount of data transmitted successfully 

  • Congestion: Network traffic buildup 

  • Latency: The delays in data transmission


Techniques Used in WAN Optimization 

There are multiple techniques used to enhance network performance in WAN environments. Some of the key techniques include: 


  • Data Deduplication

  • Compression

  • Caching

  • Protocol Optimization

  • Traffic Shaping and Prioritization

  • Latency Optimization

  • Bandwidth Management


Data Deduplication

This technique reduces the amount of data that needs to be sent across the WAN by identifying and eliminating duplicate data. Only unique data is transmitted, which significantly reduces bandwidth usage. 


By eliminating redundant data, deduplication ensures only unique information is transmitted, cutting bandwidth usage by up to 50%. 


Compression

Compression techniques reduce the size of data packets before they are transmitted across the network. This decreases the amount of data sent over the WAN, improving speed and reducing costs.

 

Caching

Frequently accessed data is stored locally in a cache. This minimizes the need to retrieve the same data from remote servers repeatedly, reducing latency and improving performance. 


Protocol Optimization

This involves optimizing and streamlining the protocols used in communication to reduce the overhead and latency associated with protocol exchanges. Techniques include reducing round-trip times and minimizing the number of packets sent. 


Streamlined protocol exchanges reduce network latency, ensuring quicker and more efficient communication. 


Traffic Shaping and Prioritization: 

This technique controls and prioritizes the flow of data across the WAN, ensuring that critical applications receive the necessary bandwidth and lower-priority traffic is delayed or throttled. 


Prioritizing critical applications ensures essential traffic gets the bandwidth it needs for optimal performance.


Latency Optimization

Techniques such as TCP window size adjustments and forward error correction are used to mitigate the effects of latency, especially in long-distance WAN connections, ensuring smoother data transmission. 


Bandwidth Management

This involves monitoring and allocating bandwidth dynamically to ensure that available bandwidth is used efficiently, avoiding congestion, and ensuring optimal performance for critical applications. 


BTI Services 

As your business network expands, whether through a WAN or LAN, ensuring robust security becomes essential. BTI offers comprehensive Network Security Services, including firewall management, intrusion detection and prevention, and secure VPN setup. These services protect your data from cyber threats and unauthorized access, giving you peace of mind that your IT infrastructure is secure and resilient against potential breaches. 


BTI offers a comprehensive solution for optimizing your WAN and LAN networks, including providing the necessary equipment, monitoring & security services, as well as procurement and comparing your internet services. With our full-spectrum support, you can ensure that your network infrastructure is secure, efficient, and perfectly tailored to your business needs. 


  1. Seamless connectivity across all your locations. 

  1. Improved network reliability and performance 

  1. World-class network security 

  1. Scalability and flexibility 

  1. Reduced Costs 

  1. 24/7/365 Support and more!  


If you’d like to know more about BTI’s IT Product & Services, contact us today to schedule your free business assessment!  



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