MPLS vs VPN: Understanding the differences

If you are looking for a powerful security solution, you might have come across systems like VPN and MPLS. VPN is the acronym for Virtual Private Network, whereas MPLS is the acronym for Multi-Protocol Label Switching.

These two distinct technologies are designed to improve your online anonymity, security, and connection speeds. However, since both MPLS and VPN are complex tools, it can be challenging to understand their inner workings and differentiate between them. 

Confused about whether you should get a VPN or an MPLS? In our MPLS vs. VPN guide, we will take a closer look at both types of networks so that you can decide which one is best suited for your needs. 

What is an MPLS?

Multi-Protocol Label Switching or MPLS is a data transfer method that differs from VPNs in terms of traffic control. In MPLS, data labels are used instead of IP addresses to identify packets, their origins, and their final destination. This eliminates the need for repeated IP look-ups as data travels across network nodes, simplifying the process and improving efficiency.

Each packet that leaves a network is given a label, allowing routers to determine the optimal route to its destination without the need for constant IP address lookups. This predefined route ensures smooth and fast data transmission, similar to having precise directions for a driver.

Besides improved efficiency, MPLS technology also offers security benefits. By keeping information at the OSI layer 2 (or data link layer) rather than the OSI layer 3 (or network layer), MPLS reduces the exposure of sensitive data during IP look-ups, making it less vulnerable to cyberattacks.

However, it’s important to note that MPLS does have some potential downsides, such as the cost associated with MPLS equipment. Implementing MPLS means investment in specialized Label Switch Router (LSR) technology, and configuration of all nodes in the data path, which can be a unique requirement in comparison to other networking setups.

What is a VPN?

A Virtual Private Network or VPN creates virtual networks that overlay physical network infrastructure. While VPNs can be set up internally within company networks, they are commonly used to establish secure connections between network nodes and the public internet.

There are many types of VPNs available today, such as site-to-site VPNs that connect offices together, or remote VPNs that create connections between user devices and data centers.

A VPN makes a virtual tunnel, through which encrypted data packets travel. This tunnel facilitates the transmission of data from your device to various locations throughout the world. During this journey, the data passes through VPN servers and routers that efficiently direct the internet traffic to its intended destination. 

The vast majority of VPNs rely on bare metal servers to create virtual connections worldwide. However, some providers also utilize virtual server technology, which may offer slower speeds.

A VPN uses encoding protocols to encrypt data, with IPSec being the most common one due to its balance between speed and security. OpenVPN and WireGuard are some of the more powerful encryption options available. 

In addition, VPNs also provide anonymity to the source of data packets. When routers assign IP addresses to packets, they are unrelated to their origin. This prevents external observers from deciphering the content of the packets or identifying the sender.

The differences between MPLS and VPN

Though they have similar use cases, VPN and MPLS systems differ greatly in terms of:

Flexibility

MPLS security is typically used for on-premises corporate networks, but it can also be useful for extended business networks, connecting global branch locations. However, configuring each connection properly can be time-consuming and inflexible.

On the other hand, VPNs offer greater flexibility for network managers. Employees can securely connect their remote devices by simply downloading the VPN client and following secure access practices. VPNs have a global reach, eliminating the need for MPLS hardware configuration in distant locations. Users can send data to contacts in different regions in an easy and secure manner.

Furthermore, VPN software can be configured by users themselves, providing companies with more freedom in terms of VPN usage and the ability to change services easily. In contrast, MPLS setups are often managed by service providers. Companies have limited control when it comes to customizing security setups and rely on a good relationship with their service provider to handle and manage the security aspects of their MPLS setup.

Security

MPLS reduces the risk of traffic interception. The IP addresses of data packets cannot be read, making it difficult for hackers to gather information about their origin and destination. When used in conjunction with strong encryption, MPLS provides strong network security.

However, MPLS is not without its flaws. If encryption is not applied, data transmitted through MPLS can still be at risk. Not to mention, attackers who gain access to internal networks can easily read traffic. Configuration errors in MPLS setups can also result in security vulnerabilities.

On the other hand, VPNs provide security through IP anonymization, tunneling protocols, and data encryption. This makes it challenging for attackers to intercept and decipher data packets, ensuring the integrity and confidentiality of the transmitted information.

That said, VPNs do rely on IP addresses, which can pose interception risks, especially when using VPN providers with inadequate security measures. To mitigate this risk, users should carefully choose their service provider, research encryption options, as well as other security aspects that a VPN should take seriously.

Performance

MPLS is often considered a faster solution for secure networking as it is designed to route data efficiently. With the use of labels, MPLS networks can determine the most efficient pathways for data transmission without the need for time-consuming IP address lookups. This streamlined setup ensures the speedy delivery of data.

VPNs are not primarily designed for efficient routing, but they can still be incredibly fast. Modern server technology, lightweight protocols, and tools such as AI-assisted routing can contribute to significant improvements in connection speed.

Furthermore, due to the overall improvement in internet speeds and the reduction in network bandwidth costs, the competitive advantage of MPLS has diminished slightly.

A VPN also brings speed optimizations in other ways. By anonymizing traffic, VPNs can help bypass ISP throttling, which is a practice where service providers slow down the connection speed of heavy users. When ISPs fail to identify the source of traffic, throttling becomes ineffective.

Cost

MPLS networking often involves higher upfront costs as it requires replacement of routers or the installation of hardware switches to ensure compatibility. Service providers may also need to invest time and resources in label configurations and software configurations for multiple connected devices, which adds to the overall cost.

On the other hand, VPNs are more cost-effective. Companies only need to obtain a client for every connected device and buy a subscription from a VPN provider, resulting in relatively low costs. However, setting up VPN routers may require the purchase of a relevant security license, which can increase the overall cost.

Can MPLS and VPN be combined?

While MPLS and VPN are often considered competitors, they can also be combined to create a secure and powerful system. By integrating MPLS labeling with VPN systems, businesses can benefit from faster speeds and improved bandwidth. Therefore, an MPLS VPN can be ideal for large organizations or individuals engaged in bandwidth-intensive activities like video conferencing.

However, MPLS VPNs can be more expensive compared to traditional VPNs. This is particularly true when they have data across long distances. So, you should only consider an MPLS VPN if:

• You have a budget for additional fees to access higher bandwidth.
• Your network requirements are primarily focused on local connectivity rather than international connections.
• It is essential for your network to have minimal or no delays.
• You require strict quality of service (QoS) guarantees for specific applications or services.
• You have advanced networking requirements that can benefit from MPLS features, such as traffic engineering or multi-site connectivity.
• You value the expertise and support offered by MPLS service providers in managing and optimizing your network.

MPLS vs. VPN – Which is the right choice?

Ultimately, it comes down to your priorities, specific needs, network infrastructure, and budget. MPLS is suitable for businesses with extensive local networks, higher bandwidth needs, and a focus on reliable performance. It offers efficient routing, minimal delays, and enhanced security, but it can be more expensive to implement and maintain.

VPNs are cost-effective and versatile solutions that work well for remote access, secure communication, and flexibility in connecting geographically dispersed locations. They provide strong encryption, anonymity, and ease of setup, which makes them ideal for businesses of all sizes.

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