Economic Justification / Rationale for MPLS

Tue Oct 1 09:27:38 UTC 2002

Whatever the relative technical merits of MPLS/BGP VPNs over other layer 3
VPNs (GRE, IPsec, L2TP etc) there are many service providers around the
world selling these services. There is clearly a business need for them, and
obviously customers how will buy them (well, we have managed to sell them
anyway!), so there is an economic reason to deploy MPLS.

Layer 2 based LAN extension services will only extend this market further
and again uses MPLS as its base transport mechanism.

Matt.

-----Original Message-----
From: Shannon Lake [mailto:shannon at omnivergent.com]
Sent: 01 October 2002 08:26
To: nanog at merit.edu
Subject: Economic Justification / Rationale for MPLS

Ladies and Gentlemen:

I have been conducting research looking for the economic justification for
MPLS.  I have some feedback, but sound rationale from the industry has
eluded me thus far.  I am looking for a paper, website, etc that explains
the benefits of implementing MPLS (other than technical) or gives some
economic modeling for MPLS-based networks.  Any help, reasoning, rationale
or personal insights/views would be greatly appreciated.

Thanks in advance, 

Shannon M. Lake Sr.

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