MPLS IPVPN is now the most popular WAN technology in Europe with 60% of European businesses having already implemented or planning to implement MPLS IPVPNs.
Many business are attracted to MPLS IPVPNs because the technology allows them to take a managed WAN service from a service provider which meets a number of key drivers for the business concerned:
- Focus on core business. Businesses place ever increasing demands on their IT departments so outsourcing management of the WAN makes sense by allowing scare resources to be freed up for other activities that support core business activities. The service provider can also take responsibility for making sure the network stays up to date with the latest technology further reducing the workload for the IT department.
- Achieve cost savings. Just outsourcing management and monitoring of the WAN may deliver cost savings, but the convergence of voice and data facilitated by MPLS can also deliver cost savings through the reduction in network complexity and capacity. In particular, IP Telephony delivered over an MPLS IPVPN can deliver significant cost savings against traditional PSTN telephone services.
- Reduction in capital expenditure. With all businesses focussing on conserving cash and finance sometimes difficult to obtain, a service model allows smoothing of expenditure as businesses treat costs as opex rather than capex and the service provider will typically spread the cost of equipment over the lifetime of a service.
- Reduction in risk. For multi-site businesses, there really isn’t an alternative to MPLS out there in the market today nor one on the horizon with the possible exception of Carrier Ethernet (which isn’t really suitable for deployment to tens or hundreds of sites). Businesses therefore are moving to MPLS IPVPNs because they know that investment in older technologies has stopped and with no alternative in sight, MPLS IPVPNs represent a low risk option.
With over 10 years’ experience in data networking, Vtesse is ideally placed to support your MPLS IPVPN and we use Cisco MPLS technology – the global market leader for IPVPN solutions. For more information, visit our IPVPN page.