The replacement for MPLS is SD-WAN! This is something we see all the time! Let's begin by distinguishing between the two terms.
SD-WAN stands for Software-defined Wide Area Network, while MPLS stands for Multiprotocol Label Switching. SD-WAN is a type of overlay technology. An MPLS network is one of several options for the underlay that provides connectivity for SD-WAN networks.
(VPLS and the Internet can also be used as underlays). MPLS and SD-WAN aren't the same things, so it's a bit illogical to say that one will replace the other. SD-WAN solutions may be the future, but they still require an underlay!
SD-WAN may not be the replacement for MPLS, but will it lead to its demise? We expect a decline, but not an immediate demise; at least, not for a considerable period. Take a look at the drivers that might impact MPLS when SD-WAN is used.
Performance and cost of WAN:
One way in which SD-WAN will impact MPLS is that it will make it easier to use alternatives to MPLS for your networking underlay. We can use the internet as an example.
What will happen to our MPLS traffic if we move to the internet?
It depends on the situation. If this were to make sense, the internet would have to be a better or cheaper networking technology; maybe just good enough and cheaper.
What is better, cheaper, or both in regards to an SD-WAN with internet circuits?
Depending on your circumstances.
If everything is running in the cloud, you may not be too concerned with MPLS performance. If you are running a real-time or latency-sensitive application over highly-used circuits, you may be concerned about packet loss and latency. The internet might seem inadequate to you, so you may be concerned.
If your company operates 100 branches overseas, then you'd save money by moving traffic from MPLS to the local internet. If the majority of your sites are located in the UK, however, the benefits are diminished. There is no significant difference in cost between MPLS circuits and the internet in the UK. It has been our experience that they can be cheaper sometimes!
You can download our free SD-WAN guide to help you navigate through the myths and jargon you may encounter on your journey to implementing your solution.