E-Guide
MPLS VPN basics
In this eGuide discover the differences between MPLS VPNs and
traditional virtual private networks, as well as the advantages and
disadvantages of the latest in service provider offerings. While an
MPLS VPN can simplify the design of your wide area network (WAN),
some compromises and changes to your WAN strategy are required.
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MPLS VPN basics
E-Guide
MPLS VPN basics
Table of Contents
MPLS VPN basics
Resources from MegaPath
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MPLS VPN basics
MPLS VPN basics
By Michael Brandenburg, Technical Editor
MPLS VPN basics: What is an MPLS VPN?
An MPLS VPN is a virtual private network built on top of a service provider’s MPLS network
to deliver connectivity between enterprise locations. Available in layer 2 or layer 3 options,
the VPN leverages the multiprotocol and labeling capabilities of MPLS to deliver a flat, peerto-peer network to link all of an organization’s remote sites into a common network. In
most cases, MPLS VPN services are sold without encryption, typically relying on the fact that
each customer is isolated from the others on his own private network. But for those
customers that require it, encryption schemes such as IPsec can be added on top of the VPN
configuration.
MPLS VPN basics: Comparing MPLS VPNs with other types of VPNs
What is the difference between MPLS and MPLS VPN? The distinction between MPLS
and MPLS VPN is actually straightforward, but marketing of the services, as well as
customers themselves, blur the differences. When referring to MPLS services, many
customers are often actually referring to an MPLS VPN service. Multiprotocol Label Switching
(MPLS) is the underlining technology that enables service providers to offer customers highspeed private networks. The service provider provisions virtual circuits for each customer,
insulating one customer’s data from another’s, even though both customers are on the
same physical telecom gear. To the customer, an MPLS network appears similar to a leased
line service, delivering a private network to link multiple corporate sites. Depending on the
customer requirements, MPLS can deliver connectivity to an enterprise at either a layer 2
Ethernet level or layer 3 IP level.
What is the difference between traditional VPN and MPLS VPN services? Most VPN
services create a one-to-one link between two network endpoints (referred to as a point-topoint solution). While the VPN appliance at the head end may support multiple inbound
links, each link is unique, with an encrypted tunnel created between each enterprise remote
site and headquarters, for example. In the point-to-point model, dedicated hardware or
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MPLS VPN basics
software is used to encrypt the traffic between the two points. For data traffic travelling
between two remote sites, this scenario creates an extra hop. In order to reach another
remote site, traffic from one site has to traverse the VPN tunnel to the headquarters, then
route through another tunnel to its final destination. This additional stop at the hub not only
adds latency in routing these packets but also requires that the hub in this configuration be
equipped with enough bandwidth to handle the load from multiple remote locations. This
type of VPN service is designed to create secure, encrypted links over public networks,
including Internet broadband links.
MPLS VPN services, on the other hand, are designed as a multipoint technology by design,
making specific VPN tunneling unnecessary. When data moves from one site to another, it
looks up the site in the routing table, adds a tag for that site, and sends the packet to the
next router. This approach not only reduces the latency of inter-site transfers, it also
flattens the wide area network design, simplifying the approach WAN engineers can take
when delivering services between sites. This approach does, however, require all remote
sites to be connected to the MPLS network.
What is the difference between L2 and L3 MPLS VPNs? As the names suggest, MPLS
VPNs can be provisioned as a layer 2 connection, such as Ethernet, ATM or frame relay, or
at layer 3 as an IP-based network. While the majority of customers opt for the IP-based
option, customers with particular security or infrastructure needs may choose the layer 2
option, handling the network layer themselves. MPLS enables service providers to offer a
range of options to meet their customers’ specific requirements.
MPLS VPN basics: Pros and cons
What are the advantages of an MPLS VPN? High performance and ease of deployment
are often cited as the advantages of an MPLS VPN over other solutions. Unlike traditional
VPNs, which presume that corporate data is being transmitted on public networks, MPLS
VPNs use an isolated private network, making the need to encrypt data between sites an
optional feature, based on the organization’s level of trust that the service provider can
effectively segregate its customers’ networks.
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What are the disadvantages of an MPLS VPN? Like any managed service, an MPLS VPN
solution ultimately requires a leap of faith for both the organization and the wide area
network (WAN) engineers themselves. Unlike typical point-to-point VPN solutions, which
usually have been managed and maintained in-house, using MPLS requires outsourcing your
VPN. While relinquishing control of the VPN can take the workload off the WAN engineer, the
organization is still at the mercy of the service provider for any moves, adds or changes that
need to occur. For many, having to submit a request to the service provider to have
configuration changes made, instead of simply making the changes themselves, could be a
significant culture shock.
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Resources from MegaPath
How to Choose a Managed Network Services Provider: 6 Best Practices to Ensure a
Thorough Evaluation
MPLS Networks for Small and Mid-Size Business: Performance-enhancing IT
Services with Reduced Costs
The MPLS Network: A Future-Proof Engine for Voice-Data Convergence Addressing network traffic trends with new opportunities for business
communications
About MegaPath
MegaPath operates one of the largest end-to-end communications networks in the country.
In 2010, the company combined with Speakeasy and Covad to form a single company
providing a full range of data, voice and security services for small businesses and
enterprises nationwide. MegaPath helps businesses of all sizes to easily and securely
communicate between their headquarters, employees and business partners to lower costs,
increase security and enhance employee productivity.
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