What is An MPLS VPN? Types, Protocols & Benefits Explained.

A Multiprotocol Label Switching (MPLS) virtual private network (VPN) enables the creation of efficient private, secure communication channels over a shared MPLS backbone. Designed for high performance, an MPLS VPN tags data packets with specific labels to efficiently route traffic based on predefined paths rather than relying solely on IP addresses. This enhances speed and reduces latency. 

MPLS VPN technology supports multiple service types, including IP VPNs, and ensures quality of service (QoS) by prioritizing traffic, which makes it ideal for applications requiring reliable and consistent performance, such as VoIP and video conferencing. MPLS VPNs offer robust security, scalability, and the flexibility to connect multiple sites, making it a versatile and efficient networking solution for enterprises.

How an MPLS VPN works

Building an MPLS network infrastructure is a lot like creating an exclusive, high-speed highway for your data. MPLS is designed to speed up and shape network traffic flows. It ensures data gets to its destination quickly and efficiently. It's like having a VIP lane on a busy freeway.

The most important component in an MPLS network are the routers. They use labels to make swift decisions about where to send packets. For example, instead of every router on the path checking the packet details, the MPLS router just reads the label at the front. This significantly cuts down on time.

Another key part of the infrastructure is the Label Edge Routers (LERs). These devices work at the edge of the MPLS network. They assign labels to incoming packets based on the destination network. 

For instance, if your company has an office in New York and another in San Francisco, the LER in New York will label the packet for the San Francisco network. It is akin to tagging your luggage at the airport for it to go to the correct plane.

Inside the MPLS network, you then have Label Switch Routers (LSRs). These routers only deal with the labels and don’t look at the packet itself. Their job is to forward the packet based on its label. Picture them as the workers on the highway who see a car with a VIP pass and direct it to the fast lane. This way, data travels quickly without getting stuck in traffic.

To ensure the network is robust, deploying Quality of Service (QoS) policies with MPLS is crucial. QoS helps prioritize certain types of traffic. For instance, if your company heavily relies on VoIP calls, you can prioritize this traffic to ensure clear and uninterrupted calls.

Additionally, integrating VPNs with MPLS adds a layer of security. You can create isolated routes for different departments within your organization. For example, the finance department’s data can travel on a separate path from the marketing department’s. It ensures sensitive information remains secure, much like having different VIP lanes for different types of VIPs.

Types of MPLS VPNs

There are three main types of MPLS VPNs: Point-to-Point, Layer 2, and Layer 3. Each type offers unique features and capabilities that make them suitable for different applications and environments.

Point-to-Point MPLS VPNs

These VPNs employ virtual leased lines (VLL) to provide Layer 2 connectivity between two sites. Essentially, they create a direct link, almost like a dedicated line, but over a shared network. 

For instance, you can encapsulate Ethernet, TDM, and ATM frames within these VLLs. Utilities often use point-to-point VPNs to encapsulate TDM T1 circuits attached to Remote Terminal Units. They are also useful for forwarding non-routed DNP3 traffic across a network to a SCADA master controller.

Layer 2 MPLS VPNs (VPLS)

To understand Layer 2 MPLS VPNs (also known as Virtual Private LAN Service or VPLS), think of them as a way to link different Layer 2 services seamlessly. This method is becoming more popular because it allows you to expand your service offerings. 

Essentially, implementing a Layer 2 VPN on a router is like setting up a traditional VPN using technologies such as ATM (Asynchronous Transfer Mode) or Frame Relay. The difference here is that traffic is forwarded in a Layer 2 format to the router, carried over the provider’s MPLS network, and then converted back at the receiving site.

Let's say you have a customer site using Ethernet at one end and an ATM connection at the other. The MPLS network can handle this traffic by encapsulating the Ethernet frames into MPLS packets and then decapsulating them back to ATM frames at the destination. This flexibility is one of the reasons Layer 2 MPLS VPNs are so valuable.

One interesting aspect of Layer 2 VPNs is that routing primarily occurs on the customer's routers. These are typically the Customer Edge (CE) routers. The CE router selects the circuit to send the traffic, while the Provider Edge (PE) routers handle the forwarding across the service provider's network. 

The PE routers don’t need to manage the customer’s routes, which simplifies their configuration. They only need to know which tunnel to send the data through, making the process quite efficient.

From a service provider's perspective, you only need to worry about the amount of traffic the VPN will handle. This is because the actual routing is managed by the customer's equipment. All you need to do is ensure your PE routers are correctly configured to handle the Layer 2 VPN interfaces. In essence, the provider’s responsibility is reduced to creating policies that govern how the VPN is set up—a significant simplification.

Imagine a company with multiple offices. Each of these offices has a VPN interface connected to the others via the service provider’s network. The provider's backbone network uses MPLS to ensure secure and private connections, akin to those provided by legacy technologies like ATM or Frame Relay.

One of the main benefits here is cost savings. You don’t need to invest in separate Layer 2 equipment; you can leverage your existing IP and MPLS backbones. Additionally, the PE router can run any Layer 3 protocol alongside the Layer 2 ones, which offers great flexibility.

From the customer’s standpoint, Layer 2 VPNs are appealing because they allow more control over network management. You maintain most of the administrative responsibilities for your network, giving you more autonomy.

Another advantage is simplicity. Layer 2 VPNs use BGP as the signaling protocol, which simplifies the design and reduces overhead compared to traditional VPNs over Layer 2 circuits. BGP signaling also allows for the autodiscovery of Layer 2 VPN peers, making setup and management more straightforward. 

In many ways, Layer 2 VPNs are similar to other BGP/MPLS VPNs and VPLS services, all using BGP for signaling, which streamlines the overall network architecture.

Layer 3 MPLS VPNs (L3VPN)

MPLS Layer 3 VPNs use a peer-to-peer model that uses Border Gateway Protocol (BGP) to distribute VPN-related information. This highly scalable, peer-to-peer model allows enterprise subscribers to outsource routing information to service providers, resulting in significant cost savings and a reduction in operational complexity for enterprises. 

Service providers can then offer value-added services like Quality of Service (QoS) and traffic engineering, allowing network convergence that encompasses voice, video, and data.

With MPLS Layer 3 VPNs, you don't need to manage all the routing details. For example, if you're an enterprise with numerous branch offices, you can simplify your network by leveraging MPLS VPNs. Instead of handling complex routing setups internally, you can rely on your service provider. This setup is particularly useful for businesses looking to scale rapidly or those with limited IT resources.

IP-based VPNsuse the next-generation Virtual Routing/Forwarding instance (VRF)-Lite, called Easy Virtual Network (EVN). EVN simplifies Layer 3 network virtualization and allows customers to easily provide traffic separation and path isolation on a shared network infrastructure, removing the need to deploy MPLS in the enterprise network. 

For example, if you run multiple departments that require separate network segments for security reasons, EVN makes this straightforward without the need for extensive MPLS setup.

EVN is fully integrated with traditional MPLS-VPN or MPLS VPNomGRE. This means you can still benefit from advanced MPLS features while simplifying your network management. Whether you're a service provider offering MPLS services or an enterprise using MPLS VPNs, the integration with EVN provides flexibility and ease of use. 

For instance, if you already run an MPLS network, integrating EVN can streamline your operations and make it easier to manage differentiated services for various clients or departments.

VPN tunneling protocols for MPLS networks

VPN tunneling is a technique many use to create secure and reliable connections across the internet. Tunneling is also crucial when we're dealing with MPLS VPNs. Think of a tunnel as a private road that is hidden from the public eye that ensures that your data travels safely without interruptions or prying eyes.

MPLS VPNs use a method called "label switching." to guide data packets through your private network route, much like how a GPS guides a car. This differs from traditional IP routing, where each packet's path is decided at every stoplight. By labeling your packets, you streamline the journey, making it faster and more efficient.

One of the most commonly used tunneling protocols is GRE, or Generic Routing Encapsulation. GRE is versatile and can encapsulate almost any network layer protocol. If you need to connect two remote offices, by using GRE tunneling, you essentially create a direct, invisible link between them. This link allows your internal protocols to pass through without being altered by the public internet.

Another tunneling protocol used for MPLS VPNS is IPsec. It stands for Internet Protocol Security. The protocol is all about encryption. How it works is that when sending a locked briefcase filled with secret documents, only the recipient with the right key can unlock and read it.

IPsec encrypts your data, ensuring that even if someone intercepts it, they can't decode the information inside. It’s perfect for scenarios where security is paramount, such as when transferring sensitive company financial data between headquarters and a remote branch.

Then there's L2TP, or Layer 2 Tunneling Protocol. It's like creating a virtual bridge between networks, allowing for a seamless flow of data. You can use L2TP when you need to integrate different network segments as if they were physically connected. Pairing L2TP with IPsec combines the strengths of both: the seamless connection of L2TP with the robust security of IPsec.

You also have the option of using MPLS-specific tunnels. These tunnels, known as Label Switched Paths (LSPs), leverage MPLS's inherent capabilities. You can use them to prioritize certain types of traffic, like VoIP calls, so they get the best path possible, reducing latency and avoiding congestion. 

So, whether you prefer GRE for versatility, IPsec for security, L2TP for seamless connections, or MPLS-specific LSPs for optimized routing, tunneling establishes a strong backbone for your MPLS VPN strategy. Each protocol offers unique advantages, and choosing the right one depends on the specific needs of our network.

Benefits of using MPLS VPNs

Improved Scalability

A MPLS VPN makes it easy to grow your network alongside your business. It's designed to handle complexity so you don't have to. When you add new locations or services, it feels less like a daunting task and more like flipping a switch.

Suppose you are managing the network for a growing company with branches sprouting up nationwide. With traditional networking, every new site means more complex configurations and increased chances of errors. Unless you are using MPLS VPN, which is designed to make it easy to scale corporate networks.

Firstly, MPLS VPN simplifies the network by using a central hub-and-spoke model. Each new site connects to a central hub, rather than connecting directly to every other site. This means fewer connections to manage. 

For instance, if you open a new office in Austin, you just link it to the central hub. It doesn't need separate connections to Denver, Seattle, and Boston. That simplicity makes expansion straightforward and reduces overhead.

Secondly, MPLS VPNs support a vast number of VPNs. This capacity allows you to segment your network easily. For example, let's say your company has multiple departments like HR, Finance, and IT. Each department can have its own VPN. 

So, when you expand, you don't have to worry about overlapping IP addresses or complex routing rules. Each department remains isolated and secure within its own VPN.

Furthermore, MPLS VPNs can handle varied traffic types efficiently. You can prioritize critical business applications over less important traffic. Suppose you have a VoIP system for customer service. You can configure the MPLS VPN to prioritize voice traffic to ensure clear calls, even during high-traffic periods. This flexibility is invaluable as you scale your operations.

Lastly, MPLS VPN offers seamless integration with cloud services. Many companies today use a mix of on-premises and cloud-based resources. With MPLS VPN, you can connect new branches to both your data center and cloud services without significant reconfigurations. So, connecting your new branch offices to both your in-house CRM system and your cloud-based storage becomes almost plug-and-play.

Enhanced security

The MPLS VPN setup offers a significant boost in security for your network. It gives you your own private highway, away from the bustling public internet. MPLS, or Multi-Protocol Label Switching, ensures that data travels through a distinct path, isolated from the typical internet traffic. This separation reduces the risk of data breaches.

MPLS VPNs also come with built-in traffic engineering capabilities. This allows you to prioritize certain types of traffic. So, if you have an important video conference or critical application data, you can ensure it gets the bandwidth it needs. This not only optimizes performance but also adds a layer of security by managing traffic more effectively.

With MPLS VPN, you are also less susceptible to common cyber threats. Traditional internet connections often expose you to various vulnerabilities, but your private MPLS network isn't as easily accessible. For instance, the chance of a Distributed Denial of Service (DDoS) attack is significantly lower compared to a public network setup.

In cases where you need to extend your network to third-party sites, say a partner's office or a cloud service, MPLS VPN can integrate these extensions securely. This flexibility ensures seamless and safe expansions without compromising your overall security posture.

Using MPLS also means you have a consistent and predictable performance. Consistency is crucial, especially when dealing with real-time data applications. If your financial data systems in various cities need to sync up in real-time, MPLS ensures they do so without lag or increased risk of interception.

Therefore, MPLS VPNs turn your company network into a fortress. They give you the peace of mind that comes from knowing your data is safeguarded, all while maintaining excellent performance and flexibility.

Better performance and reliability

One of the main reasons why MPLS VPNs are so reliable is how they handle data packets. In traditional networks, each router independently determines the next hop for a packet. This can lead to inconsistent performance. 

However, MPLS labels packets as they enter the network, directing them along predefined paths. This reduces the time each router spends making decisions, speeding things up considerably.

For example, let’s say you have an office in San Francisco and another in Sacramento. With an MPLS VPN, the data has a clear, unchanging path. This stability typically results in lower latency and jitter, crucial for applications like VoIP or video conferencing. 

We can all know that the last thing you need when running a high-stakes video call with potential clients is a laggy connection. It produces poor call quality that makes it impossible to have a dialogue. MPLS VPN helps ensure your video calls are smooth and uninterrupted.

MPLS VPNs often come with Service Level Agreements (SLAs) that guarantee uptime and network performance, making them highly reliable. In contrast, traditional IP routing doesn’t offer the same level of service guarantees. 

In practical terms, this means fewer disruptions for your critical applications. To understand this better, picture yourself managing a remote team that relies on a CRM system hosted in a data center. With an MPLS VPN, you can trust the connection to be more robust, minimizing downtime and keeping everyone productive.

We should also mention MPLS VPNs’ failover capabilities. MPLS networks can reroute traffic quickly if a link goes down. This is a big win over traditional routing methods, which might take longer to find an alternate path. 

So, if there’s a hardware failure in Chicago, the MPLS network can seamlessly redirect traffic through a different city, say Denver, ensuring your operations continue without a hitch.

So, opting for an MPLS VPN can make your network not just faster but also more dependable. It’s like giving your data a first-class ticket with priority boarding. Journey times are quicker, and there’s less chance of hitting turbulence along the way.

Connecting multiple office locations

Connecting multiple office locations can be a real headache, but using MPLS VPN can make it much simpler. If you have offices in different cities, you can use an MPLS VPN to create a secure and efficient network that links all of them together instead of setting up individual point-to-point connections.

With MPLS VPN, the data you send travels through a dedicated path on the MPLS network, ensuring speedy and reliable delivery. You don’t have to worry about latency or packet loss. It's almost like having all your branches connected internally.

MPLS makes adding new offices to the network a straightforward process. You can quickly integrate new locations into your existing network, without having to reconfigure your entire setup. And because MPLS supports different types of traffic, you can prioritize your video conferences over regular emails, ensuring smooth communication even during peak times.

In short, MPLS VPN helps you create a unified network that's efficient, scalable, and secure. It simplifies connecting multiple office locations, so you can focus on growing your business instead of managing your network.

Secure access for remote workers

Remote work has many advantages for companies and workers, but it presents data security challenges for team members who need to regularly access data and systems through the corporate network. They need to do this securely and without jumping through too many hoops, otherwise they are not going to be as productive. This is where an MPLS VPN is invaluable.

With an MPLS VPN, remote workers can connect to the company's network just as if they were sitting in the office. You can set up secure, encrypted tunnels that allow your data to travel safely over the public internet. This ensures that sensitive information like client data or internal communications stays private, even when accessed from a coffee shop Wi-Fi.

MPLS VPNs also simplify network management for you. All your remote workers connect through a centralized system, which you can monitor and manage easily. If Joel in accounting has trouble connecting, you can quickly pinpoint and solve the issue without sifting through a jungle of individual VPN connections.

MPLS VPNs, therefore, offer a seamless, secure way for remote workers to stay connected with the company network. They get fast, reliable access, and we maintain control and security over your data. It’s a win-win for both your remote workforce and our IT team.

Boosting performance for critical applications

Critical applications like video conferencing, VoIP, or real-time data analytics need more than just bandwidth; they need reliable connections and low latency. MPLS VPN delivers that for them.

Here's an example. Customer service centers rely heavily on VoIP for communication. And VoIP calls demand consistent, high-quality connectivity. If the call quality drops, customer experience suffers. MPLS VPN helps prioritize VoIP traffic, reducing jitter and packet loss. It uses a technique called Quality of Service (QoS) to ensure VoIP calls are crystal clear.

Another use case involves data analytics. Suppose your finance team needs to run real-time analytics on transactional data from various branches. MPLS VPN offers you the advantage of consistent data transfer rates. It means the analytics platform gets the timely data it needs to generate reports or flag anomalies. No more waiting around because of slow network speeds.

Even within the same network, some applications are more critical than others. With MPLS VPN, you can set priority levels. For instance, give your ERP system top priority over less critical traffic like internal emails. This way, your essential business applications always perform optimally.

Using MPLS VPN, you can also map out redundant paths. If one path fails, the network automatically reroutes traffic through an alternate path. Think of it as having a backup route for your morning commute. It ensures your critical applications experience minimal downtime, which is crucial for business continuity.

Disaster recovery and business continuity

When disaster strikes, it's essential that you bounce back quickly and maintain operations. You don’t want to halt services for customers just because something unexpected happened. 

A disaster recovery plan is like a safety net. Without it, a business can face huge financial losses, tarnish its reputation, and even put customers at risk.

MPLS VPNs play a crucial role in disaster recovery. They basically provide a secure and efficient way for data to travel between different points in a network. Imagine having multiple data centers in different locations, like one in Hong Kong and others scattered globally. 

MPLS allows these centers to connect seamlessly to the cloud and each other. This redundancy ensures there's always a backup route available, keeping everything running smoothly.

The ability to prioritize traffic is another benefit you get with MPLS. You can categorize data based on its importance. Real-time data, like a live stock market feed, gets top priority, while less critical data takes the back seat. This ensures essential services remain uninterrupted.

Many network administrators also appreciate MPLS for its troubleshooting capabilities. If there’s packet loss or a delay, you can quickly identify and fix the issue. 

Although MPLS VPNs come with a higher price tag, the benefits often outweigh the costs. For businesses that can’t afford downtime or security breaches, these VPNs are worth every penny.