As of 2020, the global WAN market was worth over $75 billion.1 That means most large enterprises use some sort of WAN, so it’s not surprising that the market for services optimizing those WANs is growing at a CAGR of over 8%.2 But what is a WAN? Here, we’ll go over what you need to understand about WANs and how to find the right partner to optimize yours.
What Is a Wide Area Network (WAN)?
A Wide Area Network (WAN) is a telecommunications network that connects computers and other devices across vast geographical distances, enabling data sharing between remote locations. WANs are essential for large organizations with multiple offices, allowing them to stay connected and access critical resources no matter where they are.
Unlike a Local Area Network (LAN), which covers a small, localized area like an office, WANs can span entire countries or continents through leased telecommunications lines, satellite systems, and cloud services. The purpose of a WAN is to support large-scale communication, linking offices, data centers, and branch locations to central resources such as databases, applications, and cloud platforms. Businesses often rely on WANs for secure data transmission, which is vital for daily operations and efficient collaboration across global teams.
WAN Architecture Explained
Wide-area network (WAN) architecture is structured using the Open Systems Interconnection (OSI) model, which standardizes how networks communicate through seven conceptual layers. Each layer of the OSI model contributes a specific function, working together to create a robust and efficient WAN. Here’s a breakdown of these layers starting from the foundational level:
1. Physical Layer
At the foundation, the physical layer transmits raw data through media like fiber optics, wireless signals, or copper cables. This layer underpins the entire WAN infrastructure, enabling long-distance communication.
2. Data Link Layer
The data link layer sets rules for data transfer over physical connections, ensuring reliability. For example, it forwards data frames between devices like routers and switches to keep the WAN running smoothly.
3. Network Layer
The network layer determines the most efficient routes for data packets, balancing loads and minimizing delays. Routing protocols like OSPF (Open Shortest Path First) work here to ensure smooth data travel.
4. Transport Layer
This layer manages data flow and ensures accurate delivery, breaking data into packets and handling errors. For example, TCP (Transmission Control Protocol) guarantees reliable communication between a company’s remote office and its headquarters.
5. Session Layer
The session layer is responsible for establishing and managing connections, and it maintains the logical link between devices. For instance, this layer opens and closes communication sessions between a remote user and an organization’s central database.
6. Presentation Layer
The presentation layer ensures data is formatted correctly and applies encryption for security during transmission. This protects sensitive information, like login credentials or customer details, from potential threats.
7. Application Layer
This layer defines how users interact with the network, handling application-specific tasks such as sending data or accessing cloud services. For example, an enterprise resource planning (ERP) system operates at this layer to support daily business functions.
Types of WAN Technologies
Different WAN technologies offer distinct advantages and are designed to meet various connectivity needs. Each WAN technology offers unique advantages and challenges, so organizations often choose a combination of these options to build a resilient and efficient network. Some of the main types of WAN technologies include:
Leased Line
Leased lines offer a private, dedicated connection between two locations, ensuring high reliability and consistent bandwidth. Ideal for enterprises needing secure, continuous data transfer, they bypass public internet congestion but tend to be pricier due to exclusivity.
MPLS (Multiprotocol Label Switching)
MPLS is a routing technique that speeds up data transfers by using labels instead of long network addresses. Suited for connecting remote offices, it ensures low-latency performance for VoIP and video. MPLS routes data on private networks, enhancing security over public internet use.
Broadband Internet
Broadband options like DSL, fiber, and cable suit smaller businesses needing affordable, widely available connectivity. While cost-effective, broadband shares bandwidth with others, which can lead to speed fluctuations and lower reliability for critical applications.
SD-WAN (Software-Defined WAN)
SD-WAN uses software to optimize traffic over various connection types (MPLS, LTE, broadband). Known for flexibility, centralized management, and cost savings, SD-WAN is ideal for businesses with multiple branches and enhances cloud app performance and network resilience.
4G/5G LTE
Cellular options like 4G and 5G are increasingly popular for remote or temporary sites due to their portability and easy deployment. With 5G’s speed capabilities, this technology is becoming a viable option for high-bandwidth needs, likely playing a larger role in future WAN setups.
How Do WANs Work?
A Wide Area Network (WAN) functions by connecting multiple local area networks (LANs) over a broad geographical area, facilitating communication between offices, data centers, cloud services, and remote users. This is achieved through a combination of hardware, software, and protocols that manage data traffic and maintain security across different connections.
The primary components of a WAN include:
- Routers and Switches: Routers are essential in a WAN for directing data packets between locations, while switches handle data transmission within each LAN. Together, they ensure that data follows the most efficient route and reaches its intended destination.
- Transmission Media: WANs utilize various transmission media, including fiber optic cables, satellite links, and cellular networks. These media transport data across long distances, allowing seamless communication between geographically separated networks.
- Data Encapsulation and Protocols: Data is encapsulated into packets and transmitted through the WAN using protocols like TCP/IP and MPLS. Protocols standardize communication, ensuring devices across the WAN understand and can process the transmitted data accurately.
- Tunneling and VPNs: To maintain security, WANs often use VPNs (Virtual Private Networks) that create encrypted tunnels over public networks. This prevents unauthorized access and ensures data confidentiality during transmission.
WANs offer the flexibility to route data across diverse infrastructures – private lines, public internet, or cloud networks – optimizing performance and cost-effectiveness.
Optimize Your WAN With a World Class Partner
WAN optimization is essential for maximizing network performance and efficiency across wide geographical areas. By employing techniques like data deduplication, compression, and protocol acceleration, WAN optimization reduces data redundancy and the volume of data transferred, which results in faster speeds and lower bandwidth costs. Of course, the most efficient way to optimize is to partner with a specialist.
With NOC as a Service (NOCaaS) from TailWind, we ensure your WAN is always optimized for high performance, reliability, and security. We offer expert network management and proactive support to keep your business connected seamlessly. Book a meeting today to learn more about how we can help.
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