Techno-economic Analysis from Implementing SD-WAN with 4G/LTE, A Case Study in XYZ Company

Abstract

The main problem of the Automated Teller Machine (ATM) network is that it has only one Wide Area Network (WAN) connection. Most ATMs use the Very Small Aperture Terminal (VSAT) access on their WAN connections to be able to connect to their networks via satellite. Having only VSAT access on most ATMs will be a big problem when the satellite is having the problem. Along with technological developments, Software-Defined WAN (SD-WAN) technology can utilize 4G/LTE with broadband Internet service as a WAN connection. By using SD-WAN with 4G/LTE, ATM will have at least two WAN connections to its network, so traffic will be moved automatically if one of the connections is down. Therefore, this paper will analyze the implementation of SD-WAN using 4G /LTE to provide a redundant/backup connection for the ATM network using the techno-economic method. There are two main objectives in using this method. First, it aims to design the network architecture that can solve the current problem in the ATM network by utilizing SD-WAN. Second, it analyzes the investment feasibility from the proposed network architecture. The results show that technically SD-WAN with 4G/LTE can be used as a redundant connection. The proposed architecture is VSAT will be used as the primary link to forward traffic and 4G/LTE as a backup in the standby state (not forwarding traffic). 4G/LTE will be used if the VSAT connection is down or underperforming. From the economic view, the implementation of SD-WAN with 4G/LTE is feasible and profitable. The Net Present Value (NPV) obtained is 242.3 billion rupiahs. The Internal Rate of Return (IRR) obtained 46%. The Payback Period (PBP) obtained is 3.4 years.