What is Multiprotocol Label Switching (MPLS)?
Multiprotocol Label Switching (MPLS) is a high-performance routing technique used to direct data through a telecommunications network. Instead of relying solely on destination IP addresses, MPLS assigns short path labels to packets, enabling routers to make forwarding decisions based on these labels, streamlining traffic flows and improving efficiency.
Traditionally used in large-scale enterprise networks, MPLS provides a predictable, private path for data to travel across service provider backbones. It's commonly used for site-to-site WAN connectivity and is known for offering low-latency, high-reliability connections, especially in mission-critical environments.
By decoupling data forwarding from complex routing tables, MPLS delivers more deterministic performance, consistent quality of service (QoS), and network segmentation for added security. Although increasingly being complemented or replaced by SD-WAN solution, MPLS still plays a critical role in networks requiring guaranteed performance and uptime.
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Modernise your WAN without the complexity.
Explore Orixcom Managed SD-WANWhy Enterprises Have Relied on MPLS?
MPLS has long been the default choice for businesses that require secure, stable connectivity between distributed offices, data centres, and key applications. It offers clear benefits compared to traditional internet-based routing—namely performance guarantees, traffic prioritisation, and end-to-end management.
Because MPLS uses label-switched paths (LSPs), data packets follow pre-defined, predictable routes. This helps eliminate congestion and latency issues often found in IP-routed networks. For organisations with latency-sensitive applications like voice, video, and ERP systems, MPLS ensures a high level of performance continuity.
Another key advantage is Quality of Service (QoS). MPLS enables traffic engineering, which allows businesses to prioritise certain types of data over others. For example, voice traffic can be prioritised over email or file transfers, ensuring real-time communications are not disrupted.
MPLS is also more secure than traditional internet connections since it operates on a private backbone—often separate from the public internet. This reduces exposure to denial-of-service (DoS) attacks or packet sniffing.
However, as application environments shift to the cloud and remote users become the norm, MPLS has started to reveal limitations in agility and cost-efficiency—giving rise to alternatives like SD-WAN and direct cloud connectivity.
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Benefits of MPLS
Predictable Network Performance
MPLS ensures low latency, minimal jitter, and guaranteed bandwidth. This makes it ideal for real-time applications like VoIP, video conferencing, and financial transactions.
Built-in Quality of Service (QoS)
With MPLS, traffic can be classified into multiple classes and prioritised accordingly. Critical data is given priority while less time-sensitive traffic waits, ensuring consistent performance for key applications.
Enhanced Security
MPLS connections typically run on private carrier networks, separate from the public internet. This adds an inherent layer of protection against common internet threats like DDoS attacks or route hijacking.
Lower Packet Loss and Congestion
Label-based forwarding ensures that packets avoid congested or unreliable routes, significantly reducing the likelihood of data loss or retransmissions.
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Limitations of MPLS
Lack of Cloud Awareness
MPLS routes traffic between fixed sites, not to dynamic cloud destinations. As more workloads move to SaaS platforms, this model struggles to keep up with modern traffic patterns.
High Cost of Bandwidth
MPLS circuits are expensive and often come with long-term contracts. Scaling bandwidth across multiple locations can become cost-prohibitive compared to SD-WAN or DIA.
Inflexibility for Remote Work
MPLS was designed for branch-to-data-centre models. With remote and hybrid work becoming the norm, businesses find MPLS lacks agility to support distributed users and cloud-first applications.
Complex Deployment and Maintenance
Provisioning MPLS links can take weeks or months. Changes to network architecture require coordination with service providers, which slows down innovation.
No Native Support for Application Visibility
Unlike SD-WAN, MPLS lacks built-in visibility into application performance or user experience, making it harder to troubleshoot or optimise real-time.
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Modern WAN Choices: Why SD-WAN Outpaces MPLS?
MPLS has long been the backbone of enterprise WANs, offering private, high-performance links between branches and data centres. But with growing cloud adoption and remote work, this static model struggles to keep up.
MPLS circuits are expensive, slow to deploy, and lack the flexibility to support modern, cloud-based traffic patterns often causing latency due to backhauling through a central hub. SD-WAN addresses these challenges with dynamic traffic routing across broadband, DIA, or LTE, based on real-time performance needs. It enables faster site rollouts, lowers costs, and enhances user experience.
Modernise your WAN without the complexity.
Move to a secure, agile network with zero hassle.
Talk to an ExpertOrixcom delivers a fully managed SD-WAN solution purpose built for enterprises. Designed for high-performance, secure, and scalable connectivity, this service simplifies network operations while enabling direct, intelligent access to cloud and data centre applications.
Key Features of Orixcom Managed Cisco SD-WAN:
- Centralised Control & Visibility:
Manage and monitor all network sites through a single dashboard using Cisco vManage. - Application-Aware Routing:
Automatically prioritises traffic based on business-critical application needs. - Secure Internet Breakout:
Enables direct access to SaaS and cloud services with built-in security controls. - Hybrid Connectivity Support:
Seamlessly integrates DIA, broadband, LTE, and MPLS as needed. - Zero-Touch Provisioning:
Rapid branch deployment without on-site configuration. - ZTNA & SASE Integration Ready:
Supports secure access models for remote and distributed users.
By partnering with Orixcom, businesses gain a trusted Managed SD-WAN service with deep regional expertise, fast deployment capabilities, and end-to-end service management ensuring performance, scalability, and security across their entire network.
Contributors:

Anthony Grower
Topic Specialist

Kelly Brighton
Topic Specialist

Richard Peace
Topic Specialist
Sources:
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