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MPLS Layer 2 Point-to-Point

MPLS Layer 3 IPVPN

MPLS Layer 2 VPLS

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MPLS Layer 3 IPVPN

Particularly suitable for large multi-site enterprise, (i.e. retail chains), that deploy a large number of low bandwidth sites or large corporates with offices deployed globally. This type of service is a natural progression away from legacy Frame Relay and ATM services. It is a perfect fit for companies that are: -

	in the process of merging: IP/VPNs are extremely scalable for fast deployment
	require ‘any to any’ connectivity: a shorter hop count between two local sites is more efficient than ‘tromboning’ back into a central point. This is especially relevant for global networks where latency is increased as packets travel over long geographical distances.
	preparing for voice and data convergence: to implement a blanket ‘class of service’ prioritisation based on traffic type is made simple across multi-site networks.
	be migrating from traditional ATM to IP: ATM is extremely expensive to maintain
	be migrating from frame relay to IP due to its inflexible nature and management restrictions.
	have low bandwidth requirements at small branch offices: in the UK sub 2 Mbps circuit delivery is available over Kilostream circuits which a cheaper alternative to Megastream & Ethernet lines.
	Need only a secure dial-up capability in smaller locations

Advantages of MPLS Layer 3 IP/VPNs

	Offers the same service guarantees services as Frame Relay or ATM without requiring the use of any permanent virtual circuits (PVC).
	Supports Class of Service (CoS) for traffic type differentiation

Disadvantages of MPLS Layer 3 IP/VPNs

	Layer 3 IP/VPN’s are proprietary; one provider, one network.
	Changes to the network configuration. For example adjusting CoS has to be requested and typically takes up to 5 days. Change control is also chargeable.
	Not suitable for small networks; instead of buying one circuit between two points, customers have to buy two circuits to be brought into the private IP/VPN cloud. IP VPN are only cost effective for 5 circuits and above
	If using BT, Internet access circuits have to be purchased separately.
	IP only; other standards cannot be used over the network without conversion to Layer 3.
	MPLS can be expensive as larger carriers charge for prioritising traffic in their annual cost.
	Change control: carriers usually reserve the right to charge for manual changes to network configuration.

More information on MPLS - read our MPLS Buyer's Guide

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