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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.