VPLS vs MPLS: Top Three Business Case Factors

In making a business case for choosing VPLS (Virtual Private LAN Service) or MPLS (Multi-Protocol Label Switching) for connectivity between remote locations, there are multiple factors to consider. We look at the top three.
VPLS vs MPLS: Capabilities
Both VPLS and MPLS provide enterprises and wireless carriers with network connections for dispersed locations. Mike Rouleau, senior vice president of strategy and business development for backhaul network provider tw telecom, said that “VPLS is very similar to MPLS, except that it stays pretty much at the Layer 2 Ethernet connection, on Ethernet infrastructure.
“In a lot of ways, it does very similar things to MPLS. It’s hosted by carriers, provides for multi-point mesh configuration and allows any site on a customer network to talk to any other site. It’s very similar to MPLS in that way, but it stays Ethernet through the network.”
MPLS, by comparison, is a layer 2.5 technology that has some layer 2 and some layer 3 characteristics, and routes network traffic via establishes network paths that are defined by the use of MPLS labels. MPLS can easily establish multiple Quality of Service characteristics, Rouleau said, that allow customers to choose which types of traffic receive priority versus being held up in queue.
Many times, Rouleau said, the choice of VPLS vs. MPLS is application driven. Some applications may have performance requirements that would guide the choice between the two.
“It really sort of depends on what the customer is doing with it,” he said.
VPLS vs MPLS: Management
Considering who wants control and management of the network is a key factor in choosing between MPLS and VPLS.
“VPLS is typically used for fewer locations that need very high speeds, very simple networks with high performance and high security,” said Brian Washburn, research director of network services for Current Analysis. “It’s the sort of thing a wholesale person would want to buy if they’re into getting lots of capacity and managing what’s riding on top themselves. It’s a very hands-on, DIY foundation on which they can build their own networks.”
Mobile carriers, he added, are likely to select VPLS for backhaul networks because of their desire to control their own networks.
“What they really need is a blank pipe from the network to the tower, and for that they typically use some kind of switched Ethernet service like VPLS,” Washburn said. “It’s going to be the preferred way to get there because the [network providers] give them capacity and then get out of the way and let the mobile company control the network end-to-end.”
MPLS, on the other hand, is typically a service that is managed by the network provider. InTechnology said in a white paper that companies should consider whether they want a managed service or one that is “wires only”.
VPLS vs MPLS: Network Size, Type and Traffic
Rouleau said that if a customer is seeking to connect entities such as data centers across the longhaul network backbone, they may prefer to use VPLS as an Ethernet-based connection strategy.
For a customer with hundreds of locations across the country who needs voice, data and video traffic to be carried to all locations, MPLS might make more sense because it is protocol-agnostic and can handle multiple types of traffic, Rouleau said. MPLS may be an even clearer choice where that situation involves large numbers of branches with only T1 access available for network connectivity.
Another network factor to consider is the difference between fixed and dynamic routing.
“VPLS relies on static routing,” according to the InTechnology report. “The meshed, managed MPLS architecture of leading service providers is dynamic, self-healing and automatically reroutes in the event of fiber break.”