TL;DR
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VPLS is a Layer 2 VPN service that connects multiple business locations as if they were part of the same Ethernet LAN.
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It works by carrying Ethernet traffic across a provider-managed MPLS network using pseudowires and MAC-based forwarding.
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VPLS can simplify multi-site connectivity, support direct site-to-site communication, and give businesses more control over routing and IP addressing.
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It is often a good fit for branch offices, data centers, real-time applications, file sharing, and businesses that want a simpler WAN architecture.
Connectivity is the backbone of successful business operations in today’s digital world. From facilitating seamless communication and collaboration across global offices to enabling cloud computing and remote network access, multi-site networking solutions like virtual private LAN service (VPLS) are essential for businesses to compete effectively.
The VPLS market is estimated to reach $2.5 billion by 2026,1 with more organizations turning to this networking solution to integrate branch offices and data centers for flexible, scalable, and efficient networks that can support their digital transformation goals. In this blog, we’ll explain how VPLS works and how it can help your multi-location business grow.
What Is VPLS?
VPLS is an Ethernet-based point-to-multipoint Layer 2 virtual private network (VPN) that enables businesses to connect their geographically dispersed sites across a shared multiprotocol label switching (MPLS) backbone. With VPLS, Ethernet LAN sites located in different places appear as if they are on the same LAN, even though traffic travels across the service provider’s network. VPLS technology integrates multiple sites to foster efficient data exchanges and streamlined operations across the entire corporate network.
How Does VPLS Work?
VPLS uses customer edge (CE) routers or switches at company sites that connect to provider edge (PE) devices at the service provider’s network edge. Here’s a closer look at how a VPLS network works:
VPLS Creates A Shared Layer 2 Network
At its core, VPLS extends Ethernet connectivity across multiple physical locations. Instead of treating each branch, office, or data center as a separate routed network, VPLS makes those sites behave as if they are part of the same Layer 2 LAN.
This allows traffic to move between locations in a familiar Ethernet format while the provider’s MPLS network handles the transport in the background. For businesses, the result is a simpler way to connect multiple sites without rebuilding the entire network around complex Layer 3 routing at every location.
Full Mesh Of Tunnels
The mesh of tunnels between PE devices is known as “pseudowires” and forms the core of the VPLS architecture. It creates any-to-any connectivity so that all services appear to be on one LAN regardless of location. This full mesh connectivity is what gives VPLS the “virtual private LAN” capabilities.
PE And CE Devices
A CE device is located at each of the organization’s sites. They connect to the PE routers, which reside at the edge of the service provider’s MPLS network, through Ethernet. The PE device runs MPLS to communicate with other PE routers and maintain VPLS instance information. PEs learn customer MAC addresses and bridge Ethernet frames between sites.
MAC-Based Frame Forwarding
VPLS forwards traffic based on MAC addresses, similar to how a traditional Ethernet switch handles traffic inside a local network. When a device at one site sends an Ethernet frame, the provider edge device learns the source MAC address and determines where that frame needs to go across the VPLS network.
The traffic is then carried across the provider’s MPLS backbone through pseudowires and delivered to the correct remote site. This is what allows different branches to communicate directly with one another while still maintaining the feel of a single connected LAN.
Signaling Protocols
Pseudowires can be signaled using Border Gateway Protocol (BGP) or Label Distribution Protocol (LDP), depending on the VPLS implementation. BGP auto-discovery and signaling are defined in RFC 4761, while LDP signaling is covered in RFC 4762.
Core MPLS Network
The core MPLS network provides transport between PE devices. It switches traffic based on MPLS labels and handles routing between PEs. The core network should provide sufficient bandwidth for VPLS traffic and Quality of Service capabilities.
What Are The Benefits Of VPLS?
VPLS offers several advantages that make it an attractive WAN solution for businesses, including:
- Cost Savings – With VPLS, you can leverage Ethernet LANs and IP/MPLS networks to connect sites rather than more expensive legacy WAN services, reducing overall costs.
- Scalability – VPLS can easily scale to support site additions, allowing you to expand the corporate network as needed.
- Operational Simplicity – VPLS makes provisioning new sites straightforward with zero-touch deployment of CE devices.
- Reliable Performance – VPLS provides reliable uptime and performance across the WAN, while QoS and prioritization capabilities ensure important network traffic gets priority.
- Security – VPLS offers security inherent in Layer 2 VPNs. Sites connect to the VPLS instance via secure tunnels across the MPLS core, isolating traffic from other customers.
By leveraging virtual private LAN service, companies can get an enterprise-grade WAN solution that is simple to manage, flexible to scale, and cost-effective to operate.
Common VPLS Use Cases For Multi-Site Businesses
VPLS is especially useful for organizations that need multiple locations to communicate as part of one connected environment. Instead of forcing all traffic through a central hub, VPLS supports direct site-to-site communication across the provider’s network, which can make everyday operations smoother for distributed teams.
Voice, Video & Real-Time Applications
Businesses that rely on voice, video conferencing, and other real-time applications need predictable performance between locations. VPLS can support these workloads by providing direct any-to-any connectivity across the WAN, while Quality of Service capabilities help prioritize sensitive traffic.
This can be useful for organizations with branch offices, remote teams, call centers, or distributed departments that depend on clear communication throughout the day.
File Sharing & Data Synchronization
VPLS can also support large file transfers, shared applications, and data synchronization between offices and data centers. When multiple sites need access to the same systems or need to move large amounts of data across the network, a Layer 2 WAN can help simplify how those connections are managed.
This is especially valuable for businesses with centralized servers, backup environments, or shared operational platforms that different locations need to reach consistently.
Simplifying Multi-Site Network Architecture
For smaller to mid-sized businesses, VPLS can reduce the complexity of connecting branches, offices, and data centers. Because sites can operate as part of the same Ethernet-based environment, businesses may not need to manage complicated routing policies at every location.
This makes VPLS a practical fit for organizations that want more control over their network without adding unnecessary administrative overhead.
VLPS vs MPLS: What Are The Differences?
While VPLS shares some common elements with MPLS, they serve different networking needs. Here are the major differences between the two:
Static vs Dynamic Routing
VPLS uses static routing between sites, which is simpler to configure but less resilient. It doesn’t adapt well to network changes or outages. MPLS employs dynamic routing protocols like OSPF and BGP, allowing MPLS to dynamically reroute traffic in case of network failures or link outages.
Network Control
VPLS gives the end-user more control over the network. Unlike MPLS, businesses can use their own equipment and manage Layer 3 routing and network traffic independently without relying on the provider. MPLS gives the service provider more control over the network. While this reduces the administrative burden for customers, change requests must go through the provider.
Scaling Ability
MPLS provides more advanced traffic engineering capabilities for large-scale networks, making it a better choice for networks with hundreds of sites or more. VPLS is a better fit for smaller to mid-sized deployments up to 50 sites where simplicity and cost are bigger factors.
Redundancy
The self-healing capabilities of MPLS give it better redundancy than a VPLS network. MPLS traffic can be dynamically rerouted if paths become unavailable. For VPLS redundancy, multihoming should be implemented by connecting CEs to multiple PE devices.
Virtual Private LAN Service (VPLS) FAQs
What Is VPLS?
VPLS, or virtual private LAN service, is a Layer 2 VPN service that connects multiple business locations across a provider-managed MPLS network. It allows branch offices, data centers, and other sites to communicate as if they were part of the same Ethernet LAN, even when they are geographically separated.
For businesses with multiple locations, this can simplify connectivity by creating a shared network environment that supports direct site-to-site communication.
What Is The Difference Between VPLS And MPLS?
MPLS is the underlying transport technology that service providers use to move traffic efficiently across their networks. VPLS is a specific Layer 2 service that can run over an MPLS backbone to connect multiple Ethernet LANs.
The main difference is how much control the customer keeps. With VPLS, businesses typically manage their own Layer 3 routing, IP addressing, and traffic policies. With traditional MPLS services, the provider often has more involvement in routing and network management.
How Does VPLS Connect Multiple Business Locations?
VPLS connects each business site through customer edge devices that link to provider edge devices on the service provider’s network. The provider’s network then uses pseudowires to carry Ethernet traffic between locations.
This creates any-to-any connectivity, so each site can communicate directly with the others instead of sending all traffic through a central hub.
Is VPLS A Good Fit For Small And Mid-Sized Businesses?
VPLS can be a strong fit for small and mid-sized businesses that need secure, reliable connectivity across multiple locations without adding unnecessary routing complexity. It is especially useful when a company wants more control over its internal network while still using provider-managed transport.
For very large enterprises with hundreds of sites or highly complex traffic engineering needs, MPLS or another WAN architecture may be a better fit.
What Are The Main Benefits Of VPLS?
The main benefits of VPLS include simplified multi-site connectivity, scalable site additions, cost efficiency, reliable performance, and more customer control over the network. Because VPLS operates at Layer 2, it can also support different traffic types and network designs without being tied to a single Layer 3 protocol.
For many businesses, the value comes from getting Ethernet-like connectivity across multiple locations without having to manage a more complex WAN architecture.
Does VPLS Support Voice, Video, And Real-Time Applications?
Yes. VPLS can support voice, video conferencing, and other real-time applications, especially when the service includes sufficient bandwidth and Quality of Service capabilities. Since VPLS supports direct site-to-site connectivity, it can help reduce unnecessary traffic backhauling between locations.
That said, performance depends on the provider, network design, bandwidth, and QoS configuration, so it is important to choose a solution that matches your application requirements.
Get The Right VPLS Solution For Your Organization With CommQuotes
With virtual private LAN service, organizations get the operational cost benefits of Ethernet and the QoS characteristics of MPLS. For smaller businesses where flexibility and control are essential, VPLS can provide secure, reliable connectivity. However, for large enterprises with mission-critical applications, MPLS may be the better fit due to its dynamic routing and scaling abilities. The right option will depend on your business’s unique needs and objectives. Luckily, you don’t have to make a decision without expert guidance.
CommQuotes specializes in helping businesses navigate the complex landscape of telecom and IT solutions. Our vendor-agnostic technology advisors can help you determine which networking solutions meet your needs – and our VIP access to leading service providers means you’ll get the absolute best pricing and client experience possible.
Ready to get started with a VPLS solution that keeps your multi-site business connected and performing optimally? Reach out to CommQuotes today.
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