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Virtual Private LAN services are growing in popularity for delivering Ethernet services. They combine MPLS and Ethernet allowing both customers and carriers to benefit. For over two decades, Ethernet switching has dominated the local area network while IP routing has dominated the carrier network. IP backbones have been used to provide Internet access and more recently to provide IP VPN access. Corporate VPN services have been typically provided with existing TDM, ATM and Frame Relay Networks. During this period, Ethernet has continued to scale the bandwidth spectrum and with its simplicity and cost effectiveness, it has established itself as the infrastructure of choice in the metro and the WAN. (Resource: vpls.org executive overview).
Otherwise known as transparent Ethernet services, VPLS is a newer protocol that works over MPLS and gives customers a combination of the benefits of the two above network types, i.e. the ability to operate a multipoint network AND pass all traffic at Layer 2 over the WAN. VPLS is popular in cities, such as Hong Kong & London & New York, where metro Ethernet networks have already been deployed. Due to its simplicity, robustness and ability to scale traffic to 10 Gbps, VPLS is popular with TV broadcasters, the financial sector and media houses.
Advantages of MPLS Layer 2 VPLS
Disadvantages of MPLS Layer 2 VPLS
 VPLS has not yet been rolled out globally therefore the “any to any” feature of Layer 3 IP/VPNs is not yet fully functional with one provider.
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