What is MPLS? This is an acronym that stands for Multiprotocol Label Switching. In short, this is a type of network routing system that transfers data using labels. These labels indicate predefined routes rather than using network addresses tied to individual nodes. This provides an alternative routing process that can improve user experience and network performance.

This may not all make that much sense right now, but don’t worry, we will go into the finer details of what MPLS is in this blog post. We will cover the MPLS network meaning and whether or not it is relevant or appropriate for your business internet solutions. Continue reading for more.

MPLS Meaning | A Guide to Multiprotocol Label Switching

What is MPLS compared to standard routing?

Before we look into what is an MPLS network is, it’s important to first understand how data travels through the World Wide Web usually. For example, let’s say you send an email, the data or IP packet is sent from one router out to its destination IP address. It’s the job of the router to decide how each and every IP packet is sent to the destination IP. It does this using various routing tables.

Each path along the way (at which the IP packet arrives) will require its own forwarding decision until it eventually ends up at the final destination. This can sometimes result in poor performance across an organisation’s network, especially when considering business internet solutions for large businesses, which may send and receive large amounts of data.

MPLS network meaning in detail

So what exactly is multiprotocol label switching in comparison? This technology directs traffic using the shortest path possible based on labels, rather than network IP addresses. This is done in order to handle forwarding over private wide area networks (WANs).

Because it’s both scalable and protocol independent, MPLS assigns a label to each data packet, determining the specific path it takes through the network. This streamlined routing significantly boosts traffic speed and helps minimise downtime for users.

How does MPLS work?

As mentioned earlier, when a regular router receives an incoming IP packet, it only contains the destination IP address. There is no other information or instructions for the route it should take or the manner in which it should arrive at the destination. The difference when thinking – what is an MPLS network – is that the assigned label contains information or ‘instructions’ on the routes the IP packet should take. This takes away the short delay routers need to ‘decide’ the best possible course.

IP packet classification

When an IP packet enters an MPLS network, it’s assigned a forwarding class known as a Class of Service (CoS), or more technically, a Forwarding Equivalence Class (FEC). This classification is included in the packet’s label and indicates the type of data being transmitted (like an email). Using this information, routers can prioritise time-sensitive traffic by directing it along the most efficient and low-latency paths. This ensures better performance for applications like voice and video calls, and provides ideal business internet solutions for medium-sized businesses and above.

Entry, transit and exit nodes

The entry node where an IP packet enters an MPLS network is called a label edge router or ingress node. The predetermined pathways that link routers through the network is referred to as the Label Switched Path (LSP). Networks can only forward IP packets once this has been determined and the label edge router has encapsulated the packet. Other ‘transit’ nodes in the network that ensure continuous data flow are called label switch routers. The last or ‘exit’ router is called the egress node. At this point, the label is removed so the IP pack address can be read and delivered.

Different types of MPLS networks

1. Layer 2 point-to-point

What is MPLS layer 2 point-to-point? This is ideal for organisations needing high bandwidth connections between a small number of locations, while keeping costs down. It’s particularly useful in network setups where the core infrastructure is built around Ethernet and Layer 2 technologies.

This type of MPLS offers a cost-effective alternative to leased lines. It’s not restricted by internet protocols, so it can send data from a local area network (LAN) to a wide area network (WAN) without converting packets to Layer 3 format.

Pros

Simplifies network management by removing the need for complex routing tables.
More affordable, as it allows direct connections via Layer 2 switches, reducing the need for costly routers.

Cons

Difficult to find circuits offering less than 10 Mbps, as providers usually supply high bandwidth options.
Doesn’t support point-to-multipoint configurations.

2. Layer 2 Virtual Private LAN Services (VPLS)

Layer 2 VPLS is gaining popularity due to its ability to deliver Ethernet services across a wide area. It combines MPLS with Ethernet to extend its benefits to both end users and carriers.

For over two decades, LANs have relied on Ethernet switching, while carrier networks have typically used IP routing for both Internet and VPN access. However, Ethernet remains a preferred option thanks to its simplicity, affordability and scalability. It’s now often used in both LAN and WAN environments.

Pros

Offers a transparent, easy-to-manage interface that reduces the need for routers.
Uses MAC addresses instead of IP addresses, resulting in lower latency than routed networks.
Simplifies configuration and makes it easier to add new sites.

Cons

Limited global availability, which can restrict deployment in some regions.
Lack of routers can increase vulnerability to network storms.
Monitoring and troubleshooting can be more complex due to limited visibility from service providers.

3. Layer 3 IP/VPN

This is designed for large organisations with multiple sites across vast geographical areas. It evolved from legacy technologies like ATM and frame relay, using MPLS labels to route data at the IP layer. This makes it a strong choice for businesses undergoing mergers, expanding rapidly, or transitioning from older network technologies to IP-based systems.

Layer 3 IP/VPN supports consistent class of service (CoS) prioritisation across all sites, making it well suited for managing different types of traffic (for example, voice, video and data) within a single network.

Pros

Highly scalable and ideal for rapid deployment across large networks.
Supports Quality of Service (QoS) for traffic prioritisation.
Doesn’t require permanent virtual circuits like ATM but delivers similar functionality.

Cons

Network changes, such as QoS adjustments, can be time-consuming and may require provider intervention.
Less suited to small businesses.
Only supports IP-based services, so Layer 2 data must be converted before use.

What is an MPLS network used for?

Large corporate organisations often make use of MPLS networks when they have multiple offices across the country or around the world. This is especially true if they need access to a data centre or a central application store. Therefore, these types of network are perhaps not the most suitable or ideal business internet solutions for small businesses.

What is an MPLS network drawback?

We hope we’ve uncovered and explained what MPLS is clearly and highlighted many of its benefits. But is there a drawback? As with anything else, there are always some downsides. While MPLS offers improved performance, scalability and bandwidth compared to traditional IP routing, it does come with notable limitations. These include high costs, limited global availability, and a lack of flexibility when it comes to working across different carriers.

Lengthy setup times: Establishing dedicated Label Switched Paths (LSPs) across large or complex networks can be time-consuming. These paths often need to be manually configured by the MPLS provider or in-house teams, which can delay network expansion and make rapid scaling difficult.

No built-in encryption: MPLS does not provide encryption by default. This means any intercepted data packets can potentially be read in plaintext unless separate encryption measures (like VPNs or IPsec) are implemented.

Limited cloud compatibility: MPLS can pose challenges for organisations using cloud services. Since businesses often don’t control the physical servers hosting their cloud applications or data, establishing direct MPLS paths to cloud environments can be difficult or impossible.

Find out more about the MPLS networks at Infinitel

The team here at Infinitel completely understand that your business is unique and has unique requirements when it comes to business internet. If would like to discuss whether or not MPLS is suitable for your business, or would simply like some information on our products, please do not hesitate to contact us.

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