How AI is Reshaping Enterprise Networks: Exploring Cost-Effective Alternatives

The Evolution of Enterprise Networks in the AI Age

As enterprises march into an AI-driven future, traditional network infrastructures, such as legacy MPLS systems, are being scrutinized for their limitations in handling the demands of next-generation technologies. Many businesses are transitioning to internet-first solutions powered by SD-WAN and SASE frameworks, which promise not only cost efficiency but also seamless cloud connectivity. These forward-looking models are reshaping how companies around the globe approach Wide Area Network (WAN) engineering, preparing their systems for the heightened demands fueled by artificial intelligence and cloud computing.

TeleGeography’s WAN Cost Benchmark platform provides valuable insights into the financial and operational benefits of adopting these hybrid or fully internet-first ecosystems. Moving from MPLS-dominated networks to internet-first alternatives allows enterprises to capitalize on the reduced costs of internet services, while significantly expanding bandwidth capacity. Particularly in regions with reliable ISPs and advanced infrastructure like Fiber to the X (FTTx), enterprises are discovering opportunities for performance improvements without dramatically increasing operational budgets.

Why Enterprises Are Choosing Internet-First Network Models

Embracing an internet-first approach is proving transformative for enterprises aiming to enhance connectivity and scalability in the AI era. By leveraging SD-WAN and SASE technologies, organizations can effectively manage internet-based networks while boosting bandwidth capabilities in a cost-efficient way. These models facilitate the replacement of traditional MPLS frameworks at most business locations, with only a few exceptions in areas like China, where MPLS still holds significant ground due to regulatory and technical constraints.

Additionally, businesses benefit from the flexibility of Direct Internet Access (DIA) and business broadband underlays. These solutions enable enterprises to move away from legacy networks and deploy multi-tiered, robust systems. While conservative designs still maintain DIA as the core connectivity method, reliance solely on broadband is becoming gradually acceptable, particularly in regions known for high ISP reliability. Companies prioritizing resilience over cost-cutting often find such hybrid designs to be the perfect middle ground for supporting AI workloads while maintaining uptime and availability.

Balancing Costs and Performance: Internet-First vs. MPLS

The financial tradeoff of transitioning to internet-first solutions has become a key consideration for enterprises. One of the most compelling advantages of SD-WAN-enabled models is the boost in total bandwidth per site without a proportional increase in costs. This is particularly beneficial in subregions where businesses can source competitive ISP services. However, enterprises should also account for factors like carrier markups when sourcing business broadband, which may still impact overall cost efficiency.

TeleGeography’s data reveals that internet-first networks often achieve a higher average bandwidth per site compared to dual MPLS configurations. This expanded capacity is game-changing for deploying AI applications such as predictive analytics or real-time customer support systems, both of which rely heavily on uninterrupted and high-speed data flow. For enterprises with resilient network designs, the shift to internet-based connectivity fulfills their demand for scalability and improved performance while meeting strict budgetary limits.

The Road Ahead: AI-Ready Network Designs

Modern enterprises increasingly prioritize AI-ready infrastructure to support their digital transformation initiatives. Internet-first networks, as illustrated by TeleGeography’s analysis, answer many of the cost and performance questions that decision-makers face. From reducing total cost of ownership (TCO) to improving connectivity across geographically dispersed sites, these networks prepare businesses for the bandwidth-intensive future of AI, cloud computing, and edge services.

The WAN Cost Benchmark platform offers a hands-on tool for enterprises to explore adaptable, on-demand networking options tailored for modern demands. As network-as-a-service (NaaS) solutions and other innovations continue to evolve, the shift toward flexible and high-capacity network systems will further accelerate. Enterprises investing strategically in these infrastructures not only future-proof their operations but also position themselves as leaders in their industries.