If you've ever evaluated enterprise connectivity options, you've encountered MPLS – and probably also a debate about whether it still has a place in modern networking.
MPLS has been the backbone of multi-site business networks for decades, valued for its reliability and predictable performance. It's also increasingly being compared against newer alternatives like SD-WAN, which has changed how organizations think about WAN architecture.
In this guide, we'll explain what MPLS is, how it works, what it's used for, and how it compares to other WAN technologies.
MPLS Meaning: What Is MPLS?
MPLS stands for Multiprotocol Label Switching. It's a networking technique that directs data between nodes using short path labels rather than long network addresses.
That small change has big performance implications. By offloading routing decisions to label-based forwarding, MPLS networks deliver consistent, low-latency performance – exactly what enterprises running real-time applications like voice, video, and transactional systems need.
What Is MPLS Used For?
Understanding what MPLS is used for in real-world business environments helps clarify why so many enterprises still rely on it. MPLS is typically deployed for:
- Multi-Site WAN Connectivity: Organizations use MPLS to connect branch offices, regional facilities, and data centers more reliably than public internet links.
- Voice and Video Applications: MPLS delivers the consistent low latency required for VoIP, video conferencing, and unified communications.
- Mission-Critical Applications: ERP, CRM, and transaction processing systems depend on stable performance, which MPLS delivers.
- Compliance-Sensitive Traffic: MPLS solutions keep regulated data flows on a private network rather than routing them over the public internet.
- Data Center Interconnect: MPLS provides high-bandwidth, low-latency links between primary and disaster recovery sites.
Many organizations continue using MPLS specifically because these workloads require the level of predictability and control that MPLS provides. When your business depends on consistent performance, MPLS has proven itself reliably.
What Is MPLS in Networking?
MPLS operates between Layer 2 (data link) and Layer 3 (network), which is why it's often called a "Layer 2.5" protocol. That positioning lets it work across multiple underlying network types like Ethernet, Frame Relay, ATM, and others without being tied to any single one.
Businesses often use MPLS in networking to connect multiple sites, like branch offices, data centers, and retail locations, over a private WAN. Unlike connections that travel across the public internet, MPLS traffic stays within the carrier's managed network for more reliability and security.
MPLS Advantages and Disadvantages
MPLS has clear strengths but also clear limitations. Looking at MPLS advantages and disadvantages side by side can help you see when it makes sense and when an alternative might fit better.
MPLS Advantages
- Delivers predictable performance with guaranteed service level commitments for bandwidth, latency, jitter, and packet loss
- Supports robust traffic engineering, allowing different application types to receive prioritized handling
- Keeps traffic on a private carrier network, rather than sending it over public internet services
- Strengthens disaster recovery with redundancy built into the carrier's infrastructure
MPLS Disadvantages
- More expensive than equivalent internet bandwidth
- Provisioning new MPLS sites typically takes weeks or months
- Carrier-dependent – you're tied to a single provider in most cases
- Can introduce latency that hurts cloud application performance
How Does MPLS Work?
To answer how MPLS works in practice, we need to look at three key components:
Labels
When a packet enters an MPLS network, the ingress router attaches a short label to it. That label identifies the path the packet should follow based on the destination, the type of traffic, and any quality-of-service policies the network operator has defined.
Label Switching Routers (LSRs)
Subsequent routers, also known as label switching routers, forward the packet based on the label alone. This is faster than traditional routing and produces more predictable performance. As the packet moves through the network, each LSR can swap, push, or pop labels to direct it along the correct path.
Label Switched Paths (LSPs)
The full route a packet takes through the MPLS network is called a label switched path. LSPs are pre-established by the network operator based on traffic patterns and service-level commitments. To answer what is MPLS network and how does it work more simply: MPLS pre-plans paths so packets take the most efficient, predictable route every time.
What Is the Difference Between WAN and MPLS?
This is a common point of confusion.
- WAN – wide area network – is a category of networks that connect geographically distributed sites.
- MPLS is one specific technology used to build a WAN.
Other WAN technologies include dedicated leased lines, broadband internet with VPN overlays, and SD-WAN, each of which comes with different tradeoffs in cost, performance, and complexity.
What Is SD-WAN vs. MPLS?
The question of what is SD-WAN vs. MPLS is one of the most important conversations in enterprise networking today. SD-WAN, short for software-defined wide area network, is a newer approach that uses software to route traffic across multiple types of underlying connections – broadband internet, LTE, 5G, and even MPLS.
But while MPLS provides one high-quality private network path, SD-WAN aggregates and orchestrates multiple paths. This makes SD-WAN more flexible and cost-effective for organizations with cloud-heavy workloads. It also typically includes built-in security features, centralized management, and rapid provisioning that MPLS can't match.
That said, MPLS can still support traffic that requires guaranteed performance and carrier-grade SLAs. Many businesses end up running a hybrid model – using SD-WAN for most traffic while keeping MPLS for performance-sensitive apps.
This is where having a vendor-agnostic advisor matters. At Aseva, we work with leading MPLS and SD-WAN providers across the market to help you evaluate the right mix.
Build the Right WAN Strategy With Aseva
MPLS isn't dead – but it isn't the default answer it used to be. The right WAN strategy depends on your application mix, cloud footprint, performance requirements, and budget. Getting it right requires an objective look at the options.
That's where we come in. Aseva operates our own nationwide network backbone and maintains relationships with all the major carriers and SD-WAN providers – which means we recommend (and deliver) what actually fits your business. Our certified engineers handle design, implementation, and ongoing management of MPLS, SD-WAN, and broader connectivity solutions, ensuring the technology continues to perform as your business evolves.
Speak with one of our network experts today to get started.
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