What are the benefits of MPLS VPN?

The most common & important benefits of MPLS VPN in short will be as follows:

> Using MPLS VPN's, each customer's traffic will be private among themselves. For eg: Customer A at location1, traffic will not be forwarded to Customer B at another location. Customer A traffic from location1 will be private & sent to Customer A at location2 (a Virtual Private Network between the two).

> Routing information of each customer is unique (for each customer on a MPLS network, different routing table will be created)

> an MPLS backbone network can carry multiple type of routing protocols information over itself in the form of VPNv4 routes. (that is a route-distingusher, route-target, label info, etc are added to each ipv4 route upon redistribution)

> it is cost effective because no need to lease a seperate line for each customer as in the case of ATM/Frame relay.

 

Thank you,

Sunny.

 

• MPLS Benefits

• Cost savings

• QOS enablement

• Improved Performance and Bandwidth Utilization

• Create Scalable IP VPNs

• Hide Network Complexity

• Traffic Engineering

•  Improve switchover time

Hello Samar, MPLS VPN is a shared service over the SP MPLS Network.
It is cost effective as compared to ATM/Frame Relay overlay network where a line need to be leased from the SP (Overlay network).
Different customers can use any private IP range from RFC1918; SP need not bother about this range because when the prefix reaches the first PE, it is transported as a VPNv4 prefix = RD + IPv4 by the MPBGP >> and this combination is unique for different customers (ofcourse SP need to configure the RD correctly).
Also, by using MPLS VPN, customer has now2 choice, either peer-to-peer or overlay network; dependent on customer (some customers like large banks shy away from sharing the L3 routing table; here L2VPN can be used).
Apart from this, there are large arrays of access services which can be leveraged to provide the end users with the solution they want.
Some Customers may want Gig line, others may needs only64k BW (like ATMs).
Hope this helps.
Regards, Imran