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Mesh topology is recommended in scenerios where:
-Redundancy/reliability is highly desirable
-Maximum performance is desirable
-Suited for wireless network like ad-hoc
Not being used commonly because:
-Setup cost is high
-Maintenance for this topology is also difficult
-Not recommended for wired environment
I agree with Muhammad Iqbal answer and I add an other disadvantage :
that is the problem of scalability,
the mesh topology can be used when the connectivity is crucial (eg, nuclear center servers...)
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