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MPLS Pros & Cons: Is It Right For Your Business? | CommQuotes

Written by otf | Feb 28, 2024 5:00:00 AM

TL;DR - Why Use MPLS

MPLS offers reliable, low-latency connectivity with guaranteed performance and traffic prioritization for critical applications.

It ensures consistent quality, secure private routing, and carrier-backed SLAs that internet-based options can’t match.

Enterprises still use MPLS when predictable performance, uptime, and control matter most - often pairing it with SD-WAN for hybrid flexibility.

MPLS networks have been the backbone of enterprise connectivity for over two decades. However, the rapid pace of digital transformation is making many businesses reconsider whether MPLS still meets their needs.

With the managed MPLS market forecast to reach $80.6 billion worldwide by 2028,1 it’s clear that many enterprises still depend on this reliable technology for connectivity. However, SD-WAN is increasingly popular adoption grew by over 66% in 2023.2 This shift is driven by factors like cloud adoption, remote work, and mobile devices, which require businesses to have greater agility and flexibility from their networks.

In this blog, we’ll explore MPLS pros and cons to help you determine if it still fits your company’s long-term strategic goals or if it’s time to make the switch to SD-WAN or a hybrid solution instead.

What Is MPLS (Multiprotocol Label Switching)?

MPLS is a networking technique that speeds up and shapes traffic flows across wide-area networks (WANs). It does this by assigning short labels to packets, so routers don't have to re-evaluate long routing tables per hop, thereby accelerating forwarding decisions.

MPLS technology creates a backbone structure that seamlessly interconnects an organization’s headquarters and branch locations. It establishes dedicated network paths between sites to securely tunnel network traffic, providing the reliability and performance required for mission-critical activities such as VoIP, video conferencing, and accessing centralized applications.

How MPLS Works (In Brief)

  • Label assignment: At the ingress router (label edge router, LER), each packet is assigned a label based on destination, quality of service (QoS), and path.
  • Label switching: Intermediate routers (label switching routers, LSRs) forward packets based on the label, swapping or rewriting labels as needed, without needing full IP lookups.
  • Egress removal: At the egress LER, the label is removed, and the packet continues to its final destination.
  • Traffic engineering & path control: MPLS allows network administrators to define explicit paths (Label Switched Paths, or LSPs) for packets, balancing load, controlling latency, and ensuring QoS constraints.

Because of its label-based mechanism, MPLS can guarantee performance, prioritize certain traffic, and deliver reliability that traditional IP forwarding struggles to achieve.

How Does MPLS Support VoIP & Video Conferencing?

MPLS (Multiprotocol Label Switching) is highly effective for VoIP (Voice over IP) and video conferencing due to its ability to prioritize traffic and ensure consistent performance. Here’s how it helps:

Quality of Service (QoS) For Prioritization

MPLS networks allow for traffic engineering, meaning businesses can prioritize real-time applications like VoIP and video calls over less critical traffic (e.g., emails or file downloads).

Network administrators can assign different Classes of Service (CoS), ensuring voice and video packets are given higher priority than regular data traffic.

Reduced Latency & Jitter

MPLS offers dedicated, low-latency routes, ensuring that VoIP and video packets reach their destination with minimal delay.

Jitter (variation in packet arrival times) is minimized because MPLS routes traffic through predictable paths, unlike traditional IP routing, which may take varying paths.

Packet Loss Prevention

MPLS networks are private and managed, reducing congestion and packet loss compared to the public internet, where bandwidth fluctuations can impact call quality.

MPLS providers often offer Service Level Agreements (SLAs) guaranteeing network performance, ensuring better voice and video clarity.

Reliability & Redundancy

MPLS networks come with built-in failover mechanisms, allowing automatic rerouting of traffic in case of a link failure, ensuring uninterrupted calls and video meetings.

Businesses can implement dual MPLS links for added redundancy, reducing the risk of dropped calls.

Security & Traffic Isolation

While MPLS does not encrypt traffic by default, it operates as a private network, meaning voice and video data are not exposed to the public internet.

This reduces risks like packet sniffing and DDoS attacks, which can degrade VoIP and video performance.

Consistent Bandwidth Allocation

Since MPLS provides dedicated bandwidth, it prevents bandwidth-heavy applications (like large downloads or streaming) from interfering with VoIP and video performance.

IT teams can allocate minimum bandwidth levels for voice and video, preventing call drops and video lag.

Limitations Of MPLS For VoIP & Video

While MPLS is excellent for VoIP and video conferencing, there are some drawbacks:

  • Higher Cost: Compared to SD-WAN and broadband, MPLS is more expensive, especially for multiple office locations.
  • Cloud Limitations: MPLS is not designed for direct cloud connectivity, making it less efficient for cloud-based VoIP solutions like Microsoft Teams or Zoom.
  • Longer Deployment: Setting up MPLS circuits takes time, making it less agile for businesses with rapidly changing networking needs.

Key MPLS Advantages For Your Business

MPLS networking offers businesses several benefits, which is why it’s remained a popular choice for global enterprises over the decades. The top advantages of MPLS for businesses include:

Reliability

With MPLS, packets are delivered securely over private, dedicated connections rather than the unpredictable public internet. Rigorous service level agreements (SLAs) guarantee network uptime and reliability, providing uninterrupted business operations and optimizing real-time voice and video communications via VoIP and unified communications.

Performance

The consistent low latency and jitter MPLS connections offer allows for effective real-time voice and video conversations. Predictable fast speeds help improve productivity by enabling collaboration tools to work optimally, and employees experience reduced congestion even during peak traffic times.

Scalability

Adding new locations is straightforward with an MPLS network’s backbone structure. Businesses can easily deploy additional sites and offices since the network can readily scale, simplifying onboarding for new locations.

Traffic Management

MPLS services allow IT teams to configure multiple classes of service to prioritize real-time traffic like voice and video over less sensitive traffic, guaranteeing high quality and performance for business-critical applications.

Security

Security vulnerabilities increased by 589% in 2023.3 MPLS connections are inherently resistant to cyber attacks, as traffic flows over private dedicated links that are completely isolated from the public internet. Malicious parties can’t access corporate data or applications from external networks, making MPLS an ideal choice for secure connectivity and data privacy.

Managed Service

An MPLS network is a fully managed network solution. The MPLS provider handles the day-to-day maintenance and management, freeing up IT resources for core initiatives and innovations that drive business value.

MPLS Disadvantages: What You Need To Know

While traditional MPLS networks offer a wide range of benefits, there are some disadvantages to consider – particularly as more businesses adopt cloud apps and infrastructure. Potential disadvantages can include:

Inflexibility

Since these networks use fixed traffic paths, MPLS routers can’t divert traffic based on real-time conditions like traffic congestion or outages. Additionally, scaling and change requests can take significant time and resources to implement.

Vendor Lock-in

MPLS requires proprietary hardware routers and switches that only work with that particular vendor’s solution, leading to vendor lock-in for the entire network with very limited options. And because MPLS uses customized equipment, switching to a different service provider means a forklift upgrade by replacing all routers and other hardware.

MPLS vs SD-WAN: What Are The Differences?

MPLS and SD-WAN take very different approaches to securely connecting multiple locations. Check out the chart below to see how these network solutions compare:

Key differences include:

  • Transport – MPLS uses private dedicated connections like T1/E1 lines. SD-WAN connections can use any type of transport, like broadband, LTE, and MPLS.
  • Traffic Routing – MPLS uses predetermined fixed paths to route traffic. SD-WAN routes internet traffic over the optimal path in real time, resulting in reduced network congestion.
  • Equipment – MPLS requires proprietary hardware routers. SD-WAN is 100% software-defined and hardware-agnostic, reducing vendor lock-in.
  • Cost – Installing and managing each MPLS connection can be expensive. In some cases, SD-WAN reduces costs by leveraging internet transport.
  • Flexibility – MPLS configurations are static, which makes scaling difficult. SD-WAN allows IT teams to quickly add locations or modify policies from a centralized location.
  • Cloud Optimization – MPLS backhauls cloud traffic through data centers. SD-WAN localizes network traffic to deliver LAN-like performance for cloud apps.

Can SD-WAN & MPLS Networks Work Together?

Leveraging SD-WAN can enhance your organization’s MPLS network. SD-WAN architecture abstracts the underlay network, transforming MPLS into one transport option along with cheaper connections like broadband and LTE. This allows businesses to retain their MPLS investment while realizing benefits like:

  • Optimizing hybrid networks by balancing traffic across MPLS and the internet.
  • Centralizing network management and monitoring through a single pane of glass.
  • Gaining valuable visibility into network and application performance.
  • Accessing cloud applications and resources directly via local breakouts.
  • Implementing granular QoS policies to prioritize business-critical traffic.

SD-WAN enables advanced traffic shaping and dynamic re-routing that MPLS can’t provide on its own. Your IT team can use SD-WAN’s centralized orchestration to optimize MPLS connections alongside newer transport services like 5G.

What Is SASE & How Does It Fit?

SASE (secure access service edge) is an emerging cloud-based architecture that converges SD-WAN capabilities with security services like Secure Web Gateway, cloud access security broker, firewall as a service, and zero trust network access.

With a SASE model, organizations can provide consistent and secure access to applications for all users, regardless of where they’re located. Plus, SASE delivers networking and security functions as a unified cloud service deployed locally at the edge, so traffic doesn’t need to backhaul through centralized data centers. As more businesses adopt SASE frameworks to secure their distributed IT environments, MPLS and SD-WAN will both play essential roles in the network underlay.

Frequently Asked Questions About MPLS

What Are The Main Advantages Of MPLS?

Key advantages include reliability, predictable performance (low latency and jitter), traffic prioritization (QoS and classes of service), scalability for adding branches, and managed service offerings where the provider handles routing, failover, and maintenance.

Why Use MPLS Instead Of Internet-Based VPNs Or SD-WAN?

You should use MPLS when you need strict performance guarantees, low jitter and latency for voice or video, and deterministic network behavior. It’s ideal when performance for mission-critical applications matters more than cost flexibility.

Does MPLS Encrypt Traffic?

MPLS provides private connectivity and traffic isolation from the public Internet, but it does not inherently encrypt data. If encryption is required, an additional layer such as IPsec must be implemented.

Can MPLS Coexist With SD-WAN?

Yes. Many businesses use a hybrid architecture where MPLS is one of the available transport options. SD-WAN can intelligently route traffic over MPLS, broadband, or LTE, depending on performance, cost, and application needs.

What Are Some Drawbacks Or Limitations Of MPLS?

Common disadvantages include higher costs than Internet-based alternatives, slower scalability, potential vendor lock-in, and inefficiency for cloud-heavy environments that require direct Internet access. These challenges make hybrid MPLS and SD-WAN networks a more flexible modern solution.

MPLS Pros & Cons - Choosing The Right Solution With CommQuotes

Evaluating whether your network still aligns with your goals is critical as your company’s needs evolve. While MPLS has served businesses faithfully for many years, the rise of cloud adoption and remote work has created the need for more dynamic, agile connectivity – which is where SD-WAN comes in.

There’s no one-size-fits-all approach to connectivity. If you’re not sure whether MPLS, SD-WAN, or a hybrid solution is right for your business, CommQuotes can help. Our technology experts can help you evaluate SD-WAN and MPLS and determine the best solutions to support your changing business needs, both now and in the future.

We leverage our VIP relationships with top providers to help you get the absolute lowest pricing and best client experience possible so you can have the right networking technology and connectivity to keep your business online and growing.

Ready to get started? Reach out to CommQuotes today!

Sources:

  1. https://www.imarcgroup.com/managed-mpls-market
  2. https://www.techtarget.com/searchnetworking/feature/Trends-for-SD-WAN-managed-services
  3. https://www.forbes.com/sites/chuckbrooks/2023/05/05/cybersecurity-trends–statistics-more-sophisticated-and-persistent-threats-so-far-in-2023