Key Advantages Of MPLS VPN Over Point-To-Point Leased Lines

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In this post, we’ll consider how Wide Area Network Connectivity-MPLS VPN network and point-to-point leased lines work. If you have multiple branches across a state or the country, you would want to connect all these branches for easier communication between them to accelerate the speed of the business transaction.

P2P Leased Line

It is formed by connecting every site to every other site with the help of the leased lines that are provided by the service provider network. This private network is used primarily for site-to-site communications. To connect an organization that has five locations, four links need to connect to each location to complete the leased line network.

MPLS Network

It is formed by connecting each location with a single link to MPLS VPN service provider. MPLS stands for multiple-protocol label switching. In the network, every packet is labeled which is used to identify it and then used to route into MPLS network. Now let us take a look at those factors that have enabled the MPLS networks to become more favorable.

Connection Oriented

They are connection-oriented network unlike connection less networks like IP, so they tend to be more reliable.

Bandwidth Allocation

These networks allow for dynamic allocation of the bandwidth. They can be used to provide the bandwidth on demand to the customers. You can limit the rate and allow bandwidth to certain applications.

Enhanced Security

The service providers take the full responsibility of the information that is sent over an MPLS network. They can even create the IP tunnels throughout the network without the need for any encryption from the user end.

Redundant Network

An MPLS network is designed to overcome any fails. They can overcome individual hardware (router) faults or line disconnection. When a fault occurs, the data is re-routed through the next optimum path within 50 milli seconds or less.


For the organizations that have a lot of branches or are growing with new branches, MPLS network turns out to be very cost-effective as each branch needs one MPLS link as against numerous links in case of a point-to-point network. Thus MPLS makes it easy for instantaneous addition and deletion of sites.

International Reach

There are options available with service providers to connect individual locations across the different countries using MPLS by sharing and interconnecting their respective MPLS networks.

Case Study: Leading Bank in India

With so many benefits a leading bank decided to go for the service.  The MPLS VPN service provider offered the business advantage by bringing together all the communication of the enterprise.

The Challenge

India’s fourth largest private sector bank was looking for scalable, reliable, pan-India communications network connecting all of its locations. The bank also wanted that all the secondary links at the locations, where there was no back-up to maintain the business uptime and increases the efficiency.

The Answer

The MPLS VPN service provider set up an MPLS backbone with a hub and spoke model to interconnect all the branches, providing the reliable and scalable services to all the sites with a QoS in place.

Solid Gains

The bank gained tremendously from the services that came in the form of low latency high uptime, at all the locations. The provider also offered bandwidth upgrade to add other branches that lead to a lot of cost savings. With a stringent SLA, it helped in prioritizing the applications for optimal bandwidth utilization.

Wrapping Up

As you can see that the benefits of MPLS VPN are aplenty. If you are looking for one, it is better to go with the provider that has served similar clients.

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Key Advantages Of MPLS VP…

by Sandeep Srivastava time to read: 2 min