Virtual Network vs Physical Network

17/06/25 Wavenet

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Choosing the right network infrastructure is a critical decision for any modern business. As organisations increasingly embrace cloud computing, hybrid work, and digital transformation, the conversation around virtual network vs physical network has never been more relevant.

At Wavenet, we specialise in building secure, scalable, and high-performing networks-both physical and virtual-to support evolving business needs. In this blog, we’ll break down the differences between virtual and physical networks, explore their benefits, and help you decide which approach (or combination) is right for your business.

What is a physical network?

A physical network refers to the traditional infrastructure used to connect devices within a business environment. This includes tangible hardware such as Ethernet cables, switches, routers, firewalls, and servers-often hosted on-premises or in a private data centre.

Requires physical space and installation
Relies on hardware for connectivity and routing
Often managed by in-house IT teams or external providers

Pros:

Lower latency with direct device connections
Greater control over hardware and data flow
Reliable for local, high-performance workloads

Cons:

Costly to install, maintain, and scale
Geographically limited
Slower to adapt to business growth or relocation

What is a virtual network?

A virtual network is a software-defined environment that enables devices and applications to communicate over the internet or cloud infrastructure without relying on direct physical connections. Virtual networks are commonly used in public clouds, such as Microsoft Azure, AWS, and Google Cloud. These are:

Configured and managed through software
Able to support dynamic, cloud-based workloads
Ideal for remote work and hybrid cloud environments

Pros:

Highly scalable and flexible
Quick to deploy and modify
Accessible from anywhere with internet connectivity

Cons:

Performance depends on internet and cloud provider quality
Requires robust security protocols
More complex configuration in multi-cloud setups

Virtual network vs physical network: Which should you choose?

The best solution often depends on your organisation’s size, growth trajectory, and IT strategy. Here's how to think about it:

Setup cost

Physical network High (hardware + installation)

Virtual network Lower (cloud subscriptions)

Scalability

Physical network Limited without major investment

Virtual network Instantly scalable

Flexibility

Physical network Rigid, location-dependent

Virtual network Remote-friendly and adaptable

Maintenance

Physical network Hardware upkeep required

Virtual network Software-managed and cloud-automated

Security

Physical network Direct control, localised policies

Virtual network Centralised, cloud-based security

In many cases, a hybrid approach that combines physical and virtual networks delivers the best balance between performance, cost, and flexibility.

How we can help

As the UK's most trusted IT managed services provider, we support businesses across the UK with expert design, deployment, and management of both virtual and physical networks.

Our services include:

On-site and cloud-based network deployment
Full network solutions including SD-WAN, MPLS and SASE
Microsoft Azure Virtual Network setup
Network monitoring and performance optimisation
Security hardening and compliance support, and a comprehensive suite of cyber security services

Whether you're modernising your infrastructure, enabling remote work, or expanding into new locations, we’ll help you build a network that’s reliable, secure, and ready to grow with your business.

Final thoughts on virtual network vs physical network

Understanding the differences between a virtual network vs physical network is essential for making informed decisions about your IT infrastructure. Each has distinct strengths, and the right choice depends on your specific operational needs and goals.

Find out more about our network connectivity solutions for every business.

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