The SD-WAN Overlay presents the main feature of the technology: designing the required application network connectivity through a software platform. The software defines a virtual network by taking two endpoints and creating a virtual connection between them. Multiple secure overlays can be built using software over existing networking infrastructure. These endpoints could be actual physical locations, such as a network port, or they could be logical locations designated by a logical/software address.
Most Overlay networks involve some type of encapsulation, which wraps up and encrypts the data for transport through a “tunnel” on its way to endpoint delivery. The designated tunnel endpoints will be different combinations depending upon origination and destination of the traffic. Some carriers, which build in Middle Mile replacement, will have tunnels terminate on their core network. They then route to their destination over that core transport as opposed to the Public Internet. This is all programmatically configured in the software through a method commonly known as Orchestration.