Multi
protocol labeled switching (MPLS) is the mechanism used in high
performance telecommunication networks and is considered to be highly
scalable data transferring method from one network node to the other.
It belongs to the packet switched networks family where the data is
in the form of packets that are to be transferred. Each data packet
is assigned with a particular label which alone influences the packet
routing or forwarding decisions without any detailed examination of
the packets. The MPLS service provider network uses high capacity
routers along with the MPLS edge routers that send as well as receive
data from the routers placed at individual locations. The virtual
private network (VPN) is a secured network that connects remote users
or sites with business’s private network through virtual
connections routed through internet. It is designed to provide a
secured, encrypted path through which data is transmitted between the
remote user and the company network. The MPLS VPN service are set of
methods that deliver an efficient, scalable and reliable method of
connecting sites together in multiple locations and countries to
provide fully managed WAN capability. It is a common platform where a
large number of services such as enterprise resource planning (ERP),
multimedia, videoconferencing, voice over IP (VoIP), etc, are
provided. The MPLS technology significantly reduces the need of data
link layer technology such as frame relay, asynchronous transfer mode
(ATM) and Ethernet. The data link layer technology is significantly
complex and expensive in nature as compared to MPLS VPN technology
which enables companies to have a direct connection with the
geographical sites without purchasing any physical circuits for it.
The
MPLS IP VPN services are provided in two ways which are Layer 3 MPLS
VPN and Layer 2 MPLS VPN. IT departments in major institutions
including government offices and banks need to control the networking
as well as routing decisions in order to manage the security issues,
use Layer 2 VPN services. IT departments of organizations which
outsource their routing and networking decisions usually choose Layer
3 VPN services. One of the major factors driving the growth of MPLS
IP VPN services market is the incorporation of these networks by
several enterprises in order to benefit themselves by high
performance and cost minimization.
The
maturity of the VPN market in recent years has also significantly led
the enterprises to adopt the MPLS IP VPN services, further driving
the growth of this market. Another important driving factor is the
decline of the ATM/relay market due to its complexity and expensive
nature which buoyed the growth of MPLS IP VPN market. MPLS IP VPN
services have the capability of providing scalable bandwidth and can
combine the voice, data and video from multiple platforms to a single
platform encouraging adoption of MPLS IP VPN services, hence, leading
to potential market growth. The technology considerably meets the
increasing traffic requirements where extra capacity is required. As
MPLS provides quality of service (QoS), a major requirement for video
conferencing, VoIP, etc, it is further considered a good opportunity
for market growth in the coming years.
Some
of the key players of the MPLS IP VPN services market are AT&T
Inc, Verizon Communication, Inc., BT Global Services, Orange Business
Services, Sprint Corporation, CenturyLink, Inc. and Cisco Systems,
Inc.
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