MPLS - Short for Multiprotocol Label Switching.

MPLS gives network operators a great deal of flexibility to divert and route traffic around link failures, congestion, and bottlenecks. This is very useful for a company with more than 2 locations.

MPLS allows a business to have a fully meshed network where each location can communicate with one another without any additional charges, unlike Frame relay. You get the full bandwidth through Committed Data Rate (CDR) usually 1.5 mbps or more (could be up to DS3 speed at 45 mbps or OC3 speed at 155 mbps). The private network NEVER touches the Internet so it is completely secure. Internet is available via a separate, secure circuit or Internet port.

With an MPLS solution, companies can talk on the phone on IP phones without any charges (local or long distance), in addition to conducting videoconferencing or VOIP through various class of service (CoS).

In the next 3 to 5 years, it is expected that MPLS circuits will overtake frame relay and point to point circuits in popularity since it is a better technology which is now proven, more beneficial to businesses, and usually 10-40% more cost effective.

The Business Advantages of a MPLS solution:

1) Improve Productivity
a. Better performance for existing applications
b. Easier to add new applications/technologies
c. Facilitates growing peer-to-peer paradigm
d. Easier moves/adds/changes

2) Improve Protection
a. Eliminates public Internet security threats
b. Supports disaster recovery

3) Improve Profitability
a. Lower Total Cost of Ownership