MPLS TECHNOLOGY
MPLS (Multi-protocol Label Switching) is a network management protocol that integrates Layer 2 information into IP elements. MPLS is not meant to replace IP technology. Rather, it is designed to add a set of rules to IP so that traffic can be classified, marked and policed. This means that MPLS networking can offer the same quality of service guarantees that data transport services like Frame Relay or ATM can, without requiring the use of any dedicated lines.
IP technology is more flexible and doesn't rely on 'point-to-point' engineering. Access networks are frame relay- or ATM-centric and voice-orientated now, but need to move either to an MPLS [Multiprotocol Label Switching] over Ethernet or SDH [Synchronous Digital Hierarchy] point of view to deliver next-generation data pipes.
MPLS is flexible, secure and cost effective, especially in comparison to traditional private circuits and Frame Relay. Virtual Private Networks (VPNs) are replacing expensive leased lines. IP VPNs are taking over from old VPN technologies such as Frame Relay and ATM.
IP-based VPNs was a €2bn industry last year, and researchers are predicting steady 25 to 30 per cent growth year-on-year.