VPN vs MPLS: Which Network Solution is Right for Your Business?

28.4k views

When it comes to connecting multiple locations within a company’s network, should you use MPLS or VPN? Which one is better for your business?

As the need for secure and reliable connections between multiple locations within a business’s network grows, so too does the debate over which technology to use. MPLS (Multiprotocol Label Switching) and VPN (Virtual Private Network) are popular options for businesses.

Both MPLS and VPN offer advantages and disadvantages, and choosing the right one for your business requires careful consideration of your specific needs and goals. This article examines the differences between MPLS and VPN and helps you determine which option best fits your company.

What is VPN?

A Virtual Private Network (VPN) is a secure means to communicate data over public or insecure networks. The main advantage of a VPN is that it enables the user to have direct access to remote computers and networks with strong encryption, making their connection private and secure. It provides high security through encryption protocols such as IPSec, SSL, TLS, and SSH.

When a VPN creates an encrypted tunnel, all data traveling through that tunnel is secure from external eyes. Through the VPN security protocols, the identities of individual computers and users on that network are not visible while maintaining full control over communications within the virtual private network’s boundaries. This provides a safe environment for sensitive data, including web files, emails, banking details, and online interactions, free from malicious third-party intrusions into the system.

VPNs are often used by businesses conducting communications in countries with strict regulation policies or those organizations wanting to transfer large amounts of data securely without disrupting service availability due to blocked connections.

What is MPLS?

MPLS, or Multi-Protocol Label Switching, is a way of transferring data across the internet that differs from VPNs in its use of traffic control techniques. MPLS utilizes labels instead of traditional IP addresses and routing tables to direct traffic. These unique labels are associated with packets as they travel from one point to another, identifying their origins and intended destination. As a result of this method, processes such as lookup routines are not needed at each network node, potentially resulting in faster information delivery.

The specific type of label used by MPLS is an MPLS label that replaces the traditional IP header and identifies which packets should be sent where. So instead of relying on ‘traditional’ means such as IP addresses for guiding data across a network, MPLS allows for improved routability due to the introduction of the labels. This improvement allows for much quicker delivery of data when compared to using just IP addresses.

VPN vs. MPLS: What’s the Difference?

VPN and MPLS are two technologies used in different networking applications. VPN stands for Virtual Private Network, a point-to-point or multipoint technology that works up to the seventh Layer of the Open System Interconnection (OSI) model. It requires encryption in order to protect data transmission and is usually cost-effective relative to other technologies. On the other hand, MPLS stands for Multiprotocol Label Switching, which is an overlapping layer 2 and 3 protocol of the OSI model that does not require encryption but instead uses label switching to prioritize traffic over communication lanes, making it more expensive than VPNs.

When comparing the features of VPNs and MPLS together, there are some key differences to note. The level of encryption needed differs between the two technologies; VPNs use encryption, but MPLS does not. The cost will also differ as MPLS protocols can be pricier than VPNs. Regarding platform support, both protocols can be supported on routers with relevant security licenses, whilst MPLS can also be terminated at any Layer 3 device, such as a router, firewall, or Layer 3 switches. Furthermore, it is possible to prioritize traffic with an MPLS network setup, and this feature cannot be accomplished on VPNs. Finally, in terms of performance, MPLS networks are faster than VPNs as they can handle more traffic efficiently.

Speed

MPLS (Multi-Protocol Label Switching) is often used as a more secure and reliable networking solution when speed is of the essence. Unlike other network architectures, it automatically routes data along optimal pathways determined by labels that have been set up in advance by a network technician. This setup eliminates time spent on IP address lookups since it allows networks to communicate with each other more rapidly. MPLS also ensures that data arrives quickly and efficiently thanks to the minimal hops required for transmission.

Despite the efficiency of MPLS, most VPNs (Virtual Private Networks) are not designed to guarantee speedy connectivity. However, modern Virtual Private Networks still offer incredibly fast speeds depending upon the quality of your provider’s connection and geographic location. Although using a VPN makes routing more roundabout compared to MPLS, encryption security is worth the tradeoff regarding requesting data from further away servers in virtual locations. Speed might take a slight hit, but safety can never be compromised.

Cost

MPLS networking often comes with a hefty upfront cost. To get a network up and running, companies must install hardware switches and compatible routers, which can add to the expense. Additionally, service providers may need to overhaul software offerings for connected devices and configure labels for those devices in order to ensure the successful implementation of MPLS. All of these requirements will take time and money resources that must be dedicated to the project to meet your desired timeline.

In comparison, VPNs are almost always more cost-effective than MPLS networking as individual clients only have to be sourced for each device connected instead of spending extra time and money on hardware installation costs. The initial setup cost is also much lower since there isn’t any reliance on external software or labels needing configuration. However, when companies decide between the two, it’s important to factor in potential performance issues that could affect user experience in order to make the best decision for their business.

Security levels

Network security is of the utmost importance in any organization. When considering virtual private networks (VPN) and multi-protocol label switching (MPLS) technologies, the choice between them ultimately lies in the safety measures offered. MPLS networks have a considerable advantage over traditional VPNs since they reduce the scope for traffic interception and prevent hackers from reading the important IP address of data packets, effectively limiting their access to valuable information about its origin and destination.

Combined with strong encryption protocols for virtually all network activities, this adds to a robust network security system. With a higher level of privacy, locations remain hidden, making it more difficult for intruders to access critical data and systems. While MPLS is generally regarded as providing higher levels of security than VPNs, it is still not a flawless security solution as hackers may manage to exploit vulnerabilities within the infrastructure or protocols being used. Therefore, organizations must keep their systems up-to-date with the latest patches against potential cyber threats.

Flexibility

MPLS is often used in on-premises corporate networks to improve security for the business. The nature of these networks means that a secure connection is essential and that every connection must be configured appropriately for optimal functionality. As such, extending an MPLS switch can quickly become time-consuming and inflexible; network managers have limited flexibility to make changes or adjustments when needed.

On the other hand, VPNs offer greater flexibility. Network managers can easily and securely link remote working devices, as well as extended business networks, over global branch locations with ease. Since many businesses now rely heavily on global offices and remote workers, these features are essential in keeping vital data secure while also enabling collaboration between departments in different countries. VPNs provide fast and reliable solutions to ensure smooth-flowing communication across the business.

VPN vs MPLS: Which One to Choose?

VPN and MPLS are network solutions designed to provide reliable and secure connectivity across distributed locations, enabling enterprises to work efficiently. When deciding which one is best for their needs, the enterprise must consider several factors such as cost, security, availability, QoS, speed, etc.

MPLS is a great solution for those who demand high-speed performance. This technology offers a quality of service (QoS) guarantees that prioritize applications like voice and video to optimize overall performance. It also provides an extra layer of security, with all traffic routed over the private backbone of a provider. The drawback here is the high costs associated with MPLS services.

In comparison, VPN solutions are much less expensive than MPLS ones. And it is suitable for those companies who demand reasonable cost-saving yet don’t have sophisticated requirements on network performance and latency control. However, due to its public network provider rather than the private backbone architecture used by MPLS; consequently, some types of VPN protocols may suffer from packet drops due to network congestion or higher latencies caused by inefficient routing algorithms. Therefore if critical real-time applications such as voice or remote desktop need to cross the network constantly, then MPLS should be selected above all else due to its superior performance.

Similarities between VPN and MPLS

Virtual Private Networks (VPNs) and Multi-protocol Label Switching (MPLS) share a common purpose: providing secure, private networks for data transport. Both technologies aim to protect against cyberattacks and keep data safe while traveling from source to destination. Both accomplish this by adding layers of encryption and authentication that make monitoring or gaining access to the traffic difficult.

You can use a VPN for encrypted, remote access and secure site-to-site connections. MPLS does not provide remote access but is great at managing larger networks as well as offering a degree of Quality of Service (QOS). Regarding security, some VPN protocols are more robust than those used in MPLS configurations. However, both technologies can offer advanced features such as firewalls, intrusion prevention systems (IPS), antivirus scanners, malware protection, Access Control List (ACL) management systems, and Network Address Translation (NAT). This makes them equally effective when it comes to cryptographic strength and overall network security.

VPN vs MPLS – Which is suitable for your business?

MPLS networks are an ideal choice for organizations that require secure, high-performance data transmission over a private network. By building an internal data transport system of routers and switches, companies and their partners can send and receive confidential data without worrying about malicious interference. Companies prioritizing performance over cost often go with MPLS as they can guarantee low latency rates by addressing direct communication channel links between connected sites.

However, if cost-saving is the goal and businesses don’t have large-scale network requirements, then Virtual Private Networks (VPNs) are the better option. VPNs allow companies to configure tunneling protocols to add extra layers of security and enable employees to access sensitive files remotely using end-to-end encryption methods. On top of that, companies can deploy plugins and firewalls easily to their devices for a more robust defense system against cyber attackers. Choosing a VPN, therefore, gives users greater flexibility in ensuring personal privacy and secure employee communication while keeping costs down.

In conclusion, VPN and MPLS are two of the most popular methods used to protect data and information programs transmitted on the internet. VPNs provide an extra layer of security by creating a secure connection between users and providing encryption. Meanwhile, by separating data packages, MPLS facilitates quick network traffic flow with multiple protocols.

While both offer advantages, it is important to consider that MPLS does not encrypt its packages and one should combine it with another method, such as VPN, for maximum security. Deciding which protocol is best depends on various factors such as speed, cost, and overall security needs. In any case, choosing one or a combination of these two protocols can significantly improve data transmission over the Internet in terms of privacy and performance.

See how ExterNetworks can help you with Managed IT Services

Request a Quote Speak with an IT Expert

Latest Articles