Multiprotocol Label Switching (MPLS) is a networking technology designed to improve the speed and control of network traffic. By using a private, label-based transmission method, MPLS delivers consistent, high-level performance for enterprise networks.
As organizations increasingly rely on seamless connectivity, the MPLS market is projected to grow from $42.76 billion in 2025 to $74.55 billion by 2034, reflecting its critical role in business communications.
To demystify this technology, our guide breaks down the fundamentals of Multiprotocol Label Switching. We look at how it works, its popular uses, types, and benefits. We also compare MPLS with SD-WAN, a more modern technology, to highlight their differences.
How Does Routing Work in MPLS?
In traditional IP routing, each router must decide where to send a data packet based on its destination IP address. Every router on the journey looks up the address in its routing table. This process can slow transmission, especially in large networks.
MPLS (Multiprotocol Label Switching) takes a different approach. Instead of relying on a network address at every hop, it assigns a short label to each packet when it enters the network. The label is a 20-bit field within a 32-bit MPLS header, which includes other fields (like Traffic Class).
The labeling system uses pre-established paths known as Label Switched Paths (LSPs). With this information, the routers know exactly where to send the packet.
Here’s a quick guide through the MPLS process:
Label assignment: When a data packet enters the MPLS network, it’s assigned a label based on its destination and service type.
Label switching: As the packet moves through the network, each router (called a Label Switching Router) swaps the current label for a new one. This is based on a pre-built table that tells the router which label to apply and where to forward the packet.
Label removal: When the packet reaches the exit point of the MPLS network, the label is removed, and the packet is delivered.
What Is MPLS Used For?
MPLS is primarily used in larger organizations, especially in healthcare, finance, telecommunication, retail, and manufacturing.
Here are popular use cases:
- Connecting multiple office locations over a private, secure network: Creating Wide Area Networks (WANs) with MPLS is a common application. This arrangement provides a more private and reliable alternative to the public internet for communication between offices.
Here are popular use cases:
- Supporting real-time applications: MPLS is excellent for high-priority VoIP (voice over IP) and video conferencing. MPLS’s Quality of Service (QoS) capabilities can prioritize real-time traffic, ensuring low latency and minimal jitter for voice and video.
- Creating VPNs for secure communication between sites: MPLS is used to create IP VPNs (virtual private networks). The goal here is to implement logical separation and security for data traveling between different locations within the network.
A high-level view of your organization’s risk profile enables you to make the best decisions about security measures
- Managing complex network traffic in large enterprise or service provider networks: The label-based forwarding of MPLS simplifies routing decisions for core routers in large networks. This makes for more efficient management of high traffic volumes.
Types of MPLS
There are three broad types of MPLS, each serving distinct business needs and network designs.
Layer 2 Point-to-Point (Pseudowire)
Layer 2 Point-to-Point creates a direct, virtual connection between two sites. It functions like a dedicated leased line but over a shared network infrastructure.
It’s ideal for organizations needing high-bandwidth, low-latency links between a few locations. It’s cost-effective and often seen as a viable alternative to high-bandwidth leased lines.
Point-to-Point supports various Layer 2 protocols and can transport Ethernet, TDM, ATM, and Frame Relay traffic, making it well-suited for legacy network environments.
Layer 2 Virtual Private LAN Services (VPLS)
VPLS extends a Layer 2 Ethernet LAN across geographically dispersed sites. It allows you to bridge VLANs (Virtual Local Area Networks) across distances so that sites appear as if they’re on the same local network, even when in different regions.
VPLS is well suited to businesses wanting to seamlessly link several offices or data centers with Layer 2 connectivity. It’s affordable, scalable, and relatively straightforward to manage.
Layer 3 MPLS VPN (L3VPN)
Operating at Layer 3, L3VPN relies on the service provider to manage packet routing between sites. This offers simplified management, strong traffic separation, and scalability for larger networks.
It’s especially suitable for organizations with multiple branches across different regions or countries. L3VPNs support secure, flexible connections and are widely used by businesses needing to merge networks or rapidly deploy new sites.
What are the Benefits of MPLS?
Let’s explore the six core benefits that set MPLS apart from traditional networking solutions.
Quality of Service (QoS) and traffic prioritization
MPLS traffic engineering facilitates predictable routing paths. MPLS’s Classes of Service (CoS) allow network administrators to prioritize critical traffic (VoIP, video conferencing, or ERP systems) over less time-sensitive data. This ensures good bandwidth to essential services, boosting application performance and user experience.
Speed and lower latency
The use of predefined Label Switched Paths (LSPs) means that data travels the most efficient route to its destination. The streamlined process cuts down on processing time, resulting in faster data transmission and lower latency (the time it takes for data to travel from its source to its destination) across the network.
Reliability and uptime
One of the standout features of MPLS is its ability to automatically reroute traffic in just milliseconds if a network data link fails. This rapid failover capability minimizes downtime and delivers business continuity even during network disruptions.
Protocol independence
MPLS is described as protocol-agnostic, meaning it can carry data from various network protocols. As a multiprotocol system, MPLS works with IP, Ethernet, and even legacy technologies like Frame Relay. This flexibility allows MPLS to integrate with different types of infrastructures, making it a versatile choice for organizations with mixed or evolving networks.
Security and privacy
MPLS provides enhanced security and privacy compared to the public internet. The traffic within the MPLS network is logically separated, isolating data from other organizations using the same provider infrastructure. This creates a private and secure environment for the transmission of sensitive business information.
Scalability
MPLS offers excellent scalability and flexibility. Adding new locations or increasing bandwidth to existing sites is straightforward, typically managed by the service provider. Whether connecting a handful of offices or a global enterprise, MPLS adapts to evolving requirements while maintaining consistent performance.
MPLS vs SD-WAN
SD-WAN (Software-Defined Wide Area Network) is a flexible, software-driven approach to wide area networking that securely connects users to applications using a mix of connectivity options like MPLS, broadband, or 4G/5G.
Essentially, it uses regular internet/ connectivity solutions and intelligent software to route data most efficiently.
SD-WAN is proposed as an alternative to MPLS, but is it a better option? Not on all scores. Each has its strengths, and the best choice depends on your needs.
MPLS is best for
MPLS is best for
Privacy and reliability: MPLS connections use dedicated private routes.
Cost-effectiveness: It can lower costs by using cheaper internet links instead of private circuits.
High performance: It delivers consistent quality and speed for real-time traffic like voice calls and video conferencing.
Security and control: SD-WAN often includes encryption, firewalls, and traffic controls built into the system.
Cloud support: The technology is purpose-built for cloud traffic.
Cloud support: The technology is purpose-built for cloud traffic.
How Acrisure Cyber Services Can Help
Whether your organization needs specific support for your in-house team or fully managed IT services, Acrisure Cyber Services can help you move forward confidently.
Acrisure offers a complete suite of expert and future-fit technology solutions, and we are a valuable partner for businesses utilizing MPLS networking. Beyond high-performing, robust networks, we provide award-winning services trusted by organizations of all sizes, including:
- Fully outsourced IT services: Comprehensive management of your IT infrastructure for optimal performance and minimal downtime.
- Cybersecurity solutions: Advanced threat detection, vulnerability management, intrusion detection systems, and more to protect against evolving cyber threats.
- Co-managed IT services: Strategic expertise and specific project skills to improve your team’s capabilities.
FAQs
In what ways does MPLS improve traffic management?
MPLS improves traffic management by employing labels rather than addresses. Data packets are assigned labels that determine their path through the network. This predefined, label-based routing results in smoother traffic flow, reduced congestion, and fewer bottlenecks. MPLS also supports Quality of Service (QoS) features, which allow certain traffic to be prioritized.
How does MPLS help in reducing latency?
How often you scan depends on your risk level, system complexity, and compliance needs. If your systems change often or you’re in a high-risk industry, continuous scanning is advisable.
For critical and public-facing systems, scan at least weekly or even daily. For less critical setups, monthly or even quarterly scans may be enough. Some standards, like PCI DSS, require scans every three months. However, following only the bare minimum can expose you to new threats.
Scanning after major system changes is important. You should also scan when dangerous emerging threats (e.g. WannaCry Ransomware) are identified so you can close new security gaps urgently.
How does MPLS optimize bandwidth utilization?
A vulnerability scan is usually a point-in-time assessment using automated tools to detect known security issues and common vulnerabilities. It is a specific type of security scan.
A security scan also checks for security flaws and critical vulnerabilities, but its scope is larger. It employs more tools and techniques. Besides vulnerability scans, it may also check firewall rules and user permissions. It often incorporates network mapping – a visual representation of all the network’s devices, systems, and connections.
What makes MPLS a scalable and flexible networking solution?
Vulnerability scanner tools cannot identify vulnerabilities like the following:
- Zero-day vulnerabilities: Newly discovered flaws not yet been recorded in vulnerability databases.
- Advanced attack techniques: Sophisticated methods like well-disguised malicious code can bypass automated scanners.
- Business logic flaws: Scanners lack the contextual understanding needed to identify issues in application workflows or logic. For example, they might not catch multiple fraudulent transactions of $499 because they only know to refer to amounts of $500+.
- Polymorphic malware: Attackers modify existing threats to create variants that evade signature-based detection. Vulnerability scanners battle to keep up.
How does MPLS contribute to improved network performance?
Vulnerability scanning and vulnerability assessments are closely related but not quite the same. A scan is an automated process using specialized tools to scan systems, networks, or applications for known vulnerabilities. As a quick and critical health check, it should be a fundamental part of your vulnerability management.
A vulnerability assessment is a broader process than scanning. It typically encompasses scanning plus analysis, as well as penetration and other testing.
What are the best practices for integrating MPLS with SD-WAN?
Vulnerability scanners can detect outdated firmware by checking device versions against known security flaws. This is useful for spotting issues in hardware like routers, firewalls, or IoT devices. Updating the firmware helps close these security gaps and protects against known exploits.
Does MPLS inherently improve network security?
Some limitations of vulnerability scanners are:
- Unable to detect zero-day exploits.
- Difficulty identifying sophisticated attacks.
- Lack context for spotting or prioritizing risks.
- May generate false positives or negatives.
These limitations highlight that scanning should be used in combination with other methods like SIEM, advanced threat and intrusion detection, and manual testing, where necessary.
What additional security measures should be implemented alongside MPLS?
Some limitations of vulnerability scanners are:
- Unable to detect zero-day exploits.
- Difficulty identifying sophisticated attacks.
- Lack context for spotting or prioritizing risks.
- May generate false positives or negatives.
These limitations highlight that scanning should be used in combination with other methods like SIEM, advanced threat and intrusion detection, and manual testing, where necessary.
What is the recommended approach for deploying IDS in a security infrastructure?
Some limitations of vulnerability scanners are:
- Unable to detect zero-day exploits.
- Difficulty identifying sophisticated attacks.
- Lack context for spotting or prioritizing risks.
- May generate false positives or negatives.
These limitations highlight that scanning should be used in combination with other methods like SIEM, advanced threat and intrusion detection, and manual testing, where necessary.
Why is it crucial to keep IDS systems regularly updated?
Some limitations of vulnerability scanners are:
- Unable to detect zero-day exploits.
- Difficulty identifying sophisticated attacks.
- Lack context for spotting or prioritizing risks.
- May generate false positives or negatives.