Network throughput vs. latency: Differences & how to measure them

Network throughput shows how much data moves across a network. Higher throughput means faster data transfer, boosting application performance. Unlike latency, which handles timing, throughput focuses on data flow efficiency.

Information you’ll gather from this post:

• More details into throughput and how it impacts performance
• Factors that can affect network throughput you should be aware of
• What network latency is and why it’s important
• How do network throughput and latency differ?
• Challenges from poor operations of both
• How to measure network throughput and latency effectively
• Meter’s NaaS solution can help optimize throughput and latency

What is throughput in networking, and how does it impact performance?

Network throughput is the amount of data transferred each second, usually in bits per second (bps). Higher throughput makes data transfer faster, which helps with things like:

• Video calls
• Online transactions
• Large file downloads

When throughput is strong, delays are fewer, and everything feels responsive. But low throughput can slow things down, leading to buffering and a laggy experience—especially when there’s a lot going on.

Main differences between network throughput and latency
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Network latency and throughput measure different parts of performance:

Throughput shows how much data a network can handle per second, ideal for streaming and big file transfers. Latency measures delay—the time before data starts moving after a request—and is key for gaming and voice calls. High throughput supports large tasks, while low latency keeps things quick. Together, they keep your network fast and responsive.

What are some factors that can affect network throughput?

Network throughput can be affected by factors like bandwidth, congestion, packet loss, and latency. Knowing these helps you manage data flow and boost network performance.

Bandwidth and its role in throughput

Bandwidth shows how much data a network link can handle. Higher bandwidth allows more data, but it doesn’t always mean higher throughput. Other issues, like congestion or packet loss, can keep throughput low even with high bandwidth.

How can I distinguish between throughput and bandwidth?

Bandwidth is the top speed a network link can handle, while throughput is the real speed you get. Actual data throughput is usually lower than the stated bandwidth due to issues like congestion and packet loss. High bandwidth means higher potential, but actual throughput depends on reducing these obstacles. Knowing this difference helps in spotting network issues and finding ways to improve performance.

How network congestion affects throughput

Congestion happens when too much data tries to travel at once. When things get crowded, throughput slows as data waits in line. Managing traffic and using quality-of-service (QoS) settings can help ease congestion by prioritizing important data.

Packet loss and its effect on data flow

Packet loss occurs when data packets don’t reach their destination, often due to network errors or congestion. When packets are lost, they have to be sent again, which lowers throughput. High packet loss is especially hard on real-time applications, like video calls and VoIP, where delays are a problem.

Latency, jitter, and the quality of throughput

Latency (the time delay in data travel) and jitter (inconsistent arrival times) can affect how data flows. High latency and jitter can slow things down, reducing throughput. Reducing network hops or optimizing routes can help keep data moving at a good pace.

What is network latency, and how does it affect performance?

Network latency is the time it takes for data to travel from one point to another and back. Lower latency speeds up data transfer, which is helpful for real-time tasks like:

• Video calls
• Online gaming
• Online trading

High latency causes delays, buffering, and slower responses, which can frustrate users. Reducing latency involves improving data routes and using tools like content delivery networks (CDNs) to keep networks responsive.

What are some factors that can affect network latency?

Network latency is affected by factors like distance, network congestion, hardware quality, and data processing steps. Each of these can add delay to data travel, impacting speed and responsiveness.

Distance between devices

The farther data has to travel, the longer it takes to get there. When data moves across continents or hops through multiple networks, latency goes up. Placing servers closer to users—like having a local data center—helps cut down that travel time.

Network congestion

When too many users or devices are on the network, data gets stuck in a virtual traffic jam. This slows down transmission and increases latency. Prioritizing important data can help clear up the congestion and keep things running smoothly.

Quality of network hardware

Not all routers and switches are created equal. Older or lower-quality hardware can slow things down, adding extra delay. Upgrading to high-performance hardware helps reduce latency and speeds up the network.

Number of hops

Each “hop” between routers or switches adds a bit of time to the journey. More hops mean higher latency. Reducing these hops, especially for crucial data paths, can help keep delays in check.

Packet loss and retransmission

When data packets get lost along the way, they have to be resent, which slows everything down. Packet loss often happens because of congestion, interference, or outdated hardware. Reducing packet loss keeps latency low and data flowing.

Protocols and data processing

Some protocols and encryption steps, while necessary, can slow data down. Choosing protocols that fit the specific needs of your application helps keep latency low without sacrificing security.

Content delivery networks (CDNs) and caching

CDNs and caching keep data closer to users, which means less travel time. By storing frequently used content nearby, CDNs help reduce latency, making things load faster—especially for streaming and online gaming.

Challenges businesses may face due to poor throughput

Poor throughput can disrupt business operations, slowing down data flow and impacting efficiency. Here’s a look at common issues it can cause and ways to improve performance.

Slow data transfer rates

Low throughput slows down data transfers, making file sharing and backups take longer. To improve this, check if your network equipment needs an upgrade. You can also adjust bandwidth settings to prioritize important tasks and help speed things up.

Reduced productivity in digital workflows

Low throughput makes applications respond slowly, interrupting workflows and reducing productivity. To fix this, try prioritizing traffic for essential applications. Using network monitoring tools can also help keep everything running without long waits.

Poor experience on essential applications

Applications like video calls and VoIP struggle with low throughput, leading to lag and dropped calls. To improve this, set up quality-of-service (QoS) settings to give these apps priority. Updating your network software also helps improve stability and response times.

Bottlenecks in cloud-based services

Cloud apps need steady data flow, so low throughput can make them sluggish. You can speed things up by optimizing the path to your cloud provider or using a dedicated connection for high-traffic apps. Many cloud providers also offer tips on improving network performance.

Higher costs from extra maintenance and upgrades

Poor throughput can lead to more maintenance and hardware upgrades to keep up with demands. To avoid extra costs, monitor your network and plan upgrades only when necessary. Regular check-ups and fixing issues early can also extend equipment life and help control costs.

Challenges businesses may face due to poor latency

Poor latency can lead to delays that affect communication, productivity, and user experience. Here’s how it impacts businesses and what can help reduce it.

Delays in real-time communication

High latency causes delays in tools like video calls and VoIP, leading to poor-quality calls and interruptions. To lower latency, try using a strong connection and consider upgrading hardware. Setting up quality-of-service (QoS) can also help by giving these apps priority.

Slow performance in cloud applications

Cloud apps need fast data transfers, but high latency can slow them down. To speed things up, try optimizing routes to your cloud provider. Many providers also offer tools to help improve connection quality for better access.

Frustrated users

High latency causes lag, which is frustrating for users, especially with interactive tools. To fix this, reduce network “hops” by optimizing routing paths. Using local servers can also help with speed.

Longer page load times

High latency makes websites and apps load slowly, affecting both productivity and customer satisfaction. Using a content delivery network (CDN) can help by storing data closer to users, reducing travel time and cutting latency.

Higher costs for fixes and upgrades

High latency often means more troubleshooting and possible upgrades, which add to costs. Regularly monitor latency to catch issues early. Optimizing network paths and keeping hardware up-to-date can reduce the need for costly fixes.

How can businesses measure throughput and latency effectively?

Running a network throughput test shows you how much data your network handles each second, giving a real look at its performance. It’s a great way to spot any slow spots in data flow, so you can make targeted improvements where they’re needed.

A latency test is also useful. It measures delays in data travel, helping you spot lag and ways to improve response times. Together, these tests show where your network is strong and where it needs a boost.

Measuring throughput

To measure throughput, check how much data actually moves across the network in a set time. You can do this by sending a test file and timing how long it takes to transfer. Just divide the file size by the time it takes to finish, and you’ve got your throughput rate—easy math, right?

Interpreting the results

Throughput results tell a business how much data its network can handle. High throughput means data moves quickly, so video calls, file sharing, and cloud apps work well. Low throughput? That’s a red flag for potential slowdowns or hiccups.

Here’s how to make sense of these results:

• Low throughput might mean there’s network congestion or outdated equipment causing traffic jams.
• If your network’s struggling to keep up, it might be time to upgrade hardware or boost bandwidth.
• Keeping an eye on throughput lets you prioritize important tasks and adjust settings for a smoother network.

Routine throughput checks give you a clear view of network health and helps keep data on the move for a frustration-free experience.

Measuring latency

For latency, it’s all about timing the delay. Use a ping or traceroute command to see how long it takes for data to travel from your device to the destination and back. This round-trip time, usually in milliseconds, shows how fast data responds, which is especially helpful for real-time tasks.

One platform, one name to remember

Sure, tools like iPerf and Wireshark are well-known names for measuring throughput and latency respectively. But Meter makes it simple to track both from a single dashboard. Our platform monitors your throughput to see how much data is moving, while also measuring latency to check for any delays. If there’s a slowdown, Meter helps you spot it fast, keeping data flowing and response times sharp.

The cost implications of low throughput and high latency

Low throughput and high latency cause tech issues that can hurt budgets and bring productivity to a crawl. Here’s how these network problems add up across different areas.

Reduced employee productivity

Slow data transfers, long file loads, and lagging apps eat up employee time. High latency just adds to the problem, disrupting video calls and online meetings. These delays stack up, leading to extra hours and resources needed to catch up, which drives up costs.

Poor customer experience and lost sales

When websites or apps lag, customers notice—and often leave. Delays, buffering, and long load times frustrate users, leading to abandoned carts or missed sales. Slow support calls due to high latency also lower customer satisfaction. For businesses that rely on fast, real-time engagement, these issues can add up to thousands in lost revenue.

Higher infrastructure and maintenance costs

To work around these issues, businesses often throw money at:

• Extra servers
• Better routers
• More data center space

But these add-ons add up over time, especially if they don’t fully fix the problem. These quick fixes lead to recurring costs that drain resources without solving the underlying issues.

Increased IT support demands

Low throughput and high latency mean more network issues, which translates to more IT support calls. Techs spend extra time troubleshooting laggy connections or data slowdowns, pulling them away from other projects. Some companies end up hiring extra IT help or paying overtime, which drives up support costs.

Losses in competitive advantage

In industries like finance, gaming, or e-commerce, a slow network can hurt a company. Delays in trades, slower data analysis, or issues in online games give faster competitors an edge.

Lower efficiency in data-heavy processes

Industries like healthcare and manufacturing work with huge amounts of data. When throughput is low, and latency is high, tasks like data analysis and backups get delayed. This leads to wasted time and higher project costs because of:

• Bottlenecks
• Lengthy backlogs
• Slowed decision-making

Increased security risks

Low throughput and high latency can weaken security. Slow networks may not complete updates, leaving systems open to threats. Laggy networks also make it harder to catch suspicious activity, raising the risk of breaches and costly repairs.

Missed opportunities for scaling and innovation

Fast, efficient networks allow businesses to grow, adopt new tech, and innovate. However, with low throughput and high latency, companies struggle to meet extra demand or adopt real-time tools. It holds them back from growth opportunities, which impacts revenue and competitiveness.

Low throughput and high latency impact almost every part of a business. Better network performance isn’t just a tech fix. It’s a smart way to cut costs, raise productivity, and support growth.

How does Network as a Service optimize throughput and latency?

Network as a Service (NaaS) is like having a network expert on call to keep data moving fast and cut down delays. Here’s how NaaS helps boost both throughput and latency.

1. Always up-to-date hardware and software

With NaaS, you don’t have to worry about outdated routers or switches slowing you down. NaaS providers keep your hardware and software current, so your network runs at its best without you having to budget for upgrades.

2. Smart resource allocation

NaaS adjusts resources based on what your network needs at any moment. It sends bandwidth to high-demand apps when they need it, reducing network congestion and keeping your data moving fast—especially during busy times.

3. Constant monitoring and quick fixes

With NaaS, your network is monitored around the clock. If there’s a slowdown or issue, the NaaS team jumps in to fix it, often before you even notice. This means fewer slowdowns and faster problem-solving, so your team stays productive.

4. Efficient data routing

NaaS providers make sure data takes the shortest, fastest path across your network. By reducing unnecessary stops (or “hops”), NaaS keeps latency low so that data arrives quickly for the most critical tasks.

Meter's NaaS solution optimizes network throughput and latency

Meter’s NaaS is designed to boost network throughput and minimize latency by handling all aspects of network setup and management. From ISP selection to ongoing network care, Meter ensures a dependable, high-performing network that lets IT teams focus on strategic projects.

Here’s how Meter supports both throughput and latency:

• ISP management: Meter assists in ISP selection to deliver fast, stable connections, supporting high network throughput and low latency.
• Optimized hardware: We provide custom switches and access points that manage heavy data loads without delays.
• Real-time network monitoring: The Meter dashboard constantly checks network health, allowing quick adjustments to keep performance strong.
• End-to-end setup and support: Our team handles installation and regular maintenance, freeing up IT teams for other priorities.
• Scalable infrastructure: Your network is set up to expand easily and meet growing needs, preventing slowdowns as demands increase.

Discover how Meter can optimize your network—schedule a demo today!