Let's generate some discussion... MPLS is a real hot topic here at Supercomm. Probe Research distributed the following assessment today of this widely debated technology. After reading through Probe's thoughts, please feel free to offer some of your own...
MPLS: Real Solution or Just Propaganda?
To date, there has been considerable hype surrounding MPLS, which has been promoted as a panacea to solve most of the networks' ills. As an enabling technology with quality of service capability, it simply attempts to overlay circuit-switched operation and benefits onto a packet-switched network. However, some engineers argue that in bringing circuit and packet switching together, MPLS fails to do either very well and runs the risk of failing to live up to its highly touted expectations.
Richard Endersby, Vice President, Internet Access and Edge Infrastructure for Probe Research, is cautiously optimistic. "MPLS faces a hard, but winnable battle. It is easy to overestimate the benefits from converging networks. Timescales can be long, integration costs can be very high, engineers need training… the list is endless. However, successful deployments of MPLS indicate that with the correct infrastructure and right approach, a business model can be based on MPLS. Equant has recently announced its 5,000th IP VPN customer based on MPLS, indicating that scalability problems may not be as bad as suggested. Nevertheless, it would be wrong to suggest that wholesale replacement of existing ATM and Frame Relay networks will happen overnight. On the contrary, a move to 100% IP/MPLS will not be anything other than a long, evolutionary process – if it happens at all."
Based on his detailed analysis of MPLS history, applications, vendor initiatives and competitive standards, Endersby has introduced a segmentation of operators that is based on their customer bases and existing assets in their networks. He believes each category of player has a differing opinion of and approach to MPLS in their networks and proposes the following classifications:
Lawyers and Accountants: Companies characterized by a wide variety of networks, protocols and even engineering divisions to support. With a wide customer base and driven by regulation, he believes these companies are risk-adverse by nature and require convincing of the viability of MPLS in their networks.
MBAs: These are established operators whose networks are optimized for voice and video transmission and based on ATM/Frame Relay. With revenues to protect and sophisticated user bases, these providers view MPLS primarily as a defense against the Technologists and Revolutionaries, while holding out the option to move to an IP infrastructure in the future.
Technologists: Targeting the enterprise with a mix of data-oriented services, these are greenfield operators that recently built their networks and are focused on wholesale and/or large enterprise customers. With low existing revenues and no revenue base of any size to protect, these providers are aggressive adopters of MPLS.
Revolutionaries: These are operators that are building access to residential or small and medium-sized business properties. They have greenfield networks and no significant revenues to defend and seek to disrupt an existing market by offering to undercut the incumbent supplier with low-cost connectivity. However, as CapEx spending by these providers is low, this segment is not an especially attractive target.