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Multiprotocol Label Switching (MPLS)
Is a mechanism in high-performance telecommunications networks that directs data from one network node to the next based on short path labels rather than long and hierarchal network addresses, avoiding complex lookups in a routing table. The labels identify virtual paths (Label Switched Path LSP) between distant nodes rather than endpoints. MPLS can encapsulate packets of various network protocols.
MPLS VPNs
Virtual private network (VPN) is a collection of sites that share the same routing table. A VPN is also can be defined as a network in which customer connectivity to multiple sites is deployed on a shared infrastructure with the same administrative policies as a private network. In an MPLS VPN, the VPN generally consists of a set of sites that are interconnected by means of an MPLS provider core network, but it is also possible to apply different policies to different systems that are located at the same site. A VPN can consist of sites (or systems) that are all from the same enterprise (intranet), or from different enterprises (extranet); it might consist of sites (or systems) that all attach to the same service provider backbone, or to different service provider backbones.