The global managed MPLS market size reached approximately USD 65.31 billion in 2023. The market is projected to grow at a CAGR of 6.1% between 2024 and 2032, reaching a value of around USD 111.56 billion by 2032. This indicates that more and more businesses are recognizing the advantages of managed MPLS services and adopting them for their network needs.
In this blog post, we will explore the benefits of managed MPLS services for businesses of all sizes, from small to large enterprises. We will also look at some real-life case studies of how managed MPLS services have helped businesses overcome their network challenges and achieve their goals. Finally, we will provide some considerations for choosing a managed MPLS service provider that suits your business needs and budget.
Benefits of Managed MPLS Services
Managed MPLS services offer a range of benefits for businesses that need a high-performance, secure, and scalable network. Here are some of the main benefits of managed MPLS services:
Improved Network Performance
One of the most obvious benefits of managed MPLS services is the improvement in network performance. Managed MPLS services can help businesses achieve:
- Reduced latency and packet loss: MPLS uses labels to direct data packets along the best available path, avoiding congestion and delays. This reduces the latency and packet loss that can affect the quality of voice, video, and data applications.
- Enhanced Quality of Service (QoS) for critical applications: MPLS allows businesses to prioritize their traffic based on the type and importance of the application. For example, voice and video applications can be given higher priority than web browsing or email. This ensures that the critical applications get the bandwidth and quality they need, even during peak times or network failures.
Scalability and Flexibility
Another benefit of managed MPLS services is the scalability and flexibility they offer. Managed MPLS services can help businesses:
- Easily add or remove sites: MPLS networks are easy to expand or contract, as they do not require complex routing configurations. Businesses can add or remove sites as they grow or change, without disrupting the existing network.
- Adapt to changing business needs: MPLS networks are also flexible and adaptable, as they can support different types of traffic and protocols, such as IP, Ethernet, ATM, or Frame Relay. Businesses can use MPLS to connect their various locations, devices, and applications, regardless of the underlying network technology.
Enhanced Security
A third benefit of managed MPLS services is the enhanced security they provide. Managed MPLS services can help businesses:
- Built-in security features: MPLS networks are inherently secure, as they use labels to isolate and encrypt the data packets. This prevents unauthorized access, interception, or tampering of the data. MPLS networks also use firewalls, VPNs, and other security measures to protect the network from external threats.
- Expert monitoring and threat detection: Managed MPLS service providers also offer 24/7 network monitoring and management, as well as advanced threat detection and mitigation tools. They can identify and resolve any network issues or security breaches, before they affect the business operations or data integrity.
Cost Savings
A final benefit of managed MPLS services is the cost savings they generate. Managed MPLS services can help businesses:
- Predictable monthly costs: Managed MPLS services have a fixed monthly fee, based on the bandwidth and service level required. This eliminates the variable and hidden costs of managing the network in-house, such as hardware, software, maintenance, upgrades, and staff.
- Reduced need for in-house IT resources: Managed MPLS services also free up the in-house IT resources, as the service provider takes care of the network management and support. This allows the IT staff to focus on other strategic and value-added tasks, rather than troubleshooting network problems.
Case Studies
To illustrate the benefits of managed MPLS services, let us look at some real-life case studies of how managed MPLS services have helped businesses of different sizes and industries.
Example 1: Company X’s Experience with Managed MPLS
Company X is a large multinational corporation that operates in various sectors, such as manufacturing, retail, and finance. It has over 200 locations across the world, and thousands of employees and customers. It relies on its network to support its daily operations, such as data transfer, video conferencing, cloud computing, and e-commerce.
Before implementing managed MPLS services, Company X faced several network challenges, such as:
- Slow and unreliable network performance, due to the high volume and diversity of traffic, and the long distances between the locations.
- High network costs, due to the need for multiple network providers, equipment, and staff.
- Low network security, due to the exposure to external threats and the lack of encryption and monitoring.
After switching to managed MPLS services, Company X gained several benefits, such as:
- Improved network performance, due to the reduced latency and packet loss, and the enhanced QoS for critical applications.
- Lower network costs, due to the predictable monthly fee, and the reduced need for in-house IT resources.
- Higher network security, due to the built-in security features, and the expert monitoring and threat detection.
Example 2: Small Business Y’s Success with Managed MPLS
Small Business Y is a local company that provides online education services to students and teachers. It has a small office with 10 employees, and a website that hosts its courses and content. It relies on its network to deliver its services, such as video streaming, online testing, and file sharing.
Before implementing managed MPLS services, Small Business Y faced several network challenges, such as:
- Poor network performance, due to the limited bandwidth and quality of its internet service provider.
- High network costs, due to the need for expensive hardware and software upgrades.
- Low network security, due to the vulnerability to cyberattacks and data breaches.
After switching to managed MPLS services, Small Business Y gained several benefits, such as:
- Enhanced network performance, due to the increased bandwidth and quality of its network connection.
- Cost savings, due to the fixed monthly fee, and the elimination of hardware and software costs.
- Improved network security, due to the encryption and protection of its data.
Considerations for Choosing a Managed MPLS Service Provider
As we have seen, managed MPLS services can offer many benefits for businesses of all sizes and industries. However, not all managed MPLS service providers are the same, and some may be more suitable for your business than others. Here are some considerations for choosing a managed MPLS service provider that meets your needs and expectations:
Service Level Agreements (SLAs) and Performance Guarantees
One of the most important factors to consider when choosing a managed MPLS service provider is the SLA and the performance guarantees they offer. The SLA is a contract that defines the level and quality of service that the provider will deliver, such as the availability, reliability, latency, and throughput of the network. The performance guarantees are the penalties or compensations that the provider will pay if they fail to meet the SLA.
You should look for a managed MPLS service provider that offers a clear and comprehensive SLA, with measurable and realistic performance indicators. You should also look for a provider that offers generous and flexible performance guarantees, that reflect the impact of any network issues on your business.
Network Monitoring and Management Capabilities
Another factor to consider when choosing a managed MPLS service provider is their network monitoring and management capabilities. The network monitoring and management capabilities are the tools and processes that the provider uses to oversee and control the network, such as network design, configuration, troubleshooting, optimization, and security.
You should look for a managed MPLS service provider that has a robust and reliable network monitoring and management system, that can provide you with real-time visibility and control over your network. You should also look for a provider that has a dedicated and experienced network team, that can provide you with proactive and responsive support and service.
Scalability and Future-Proofing
A third factor to consider when choosing a managed MPLS service provider is their scalability and future-proofing. Scalability and future-proofing are the ability and willingness of the provider to adapt and grow with your business, as your network needs and demands change over time.
You should look for a managed MPLS service provider that has a flexible and scalable network infrastructure, that can accommodate your current and future bandwidth and service requirements. You should also look for a provider that has a forward-looking and innovative approach, and can offer you the latest and best network technologies and solutions.
Customer Support and Service Quality
A final factor to consider when choosing a managed MPLS service provider is customer support and service quality. The customer support and service quality are the level and manner of assistance and communication that the provider offers to you, as their customer.
You should look for a managed MPLS service provider that has a friendly and professional customer support team, that can answer your questions and resolve your issues promptly and effectively. You should also look for a provider that has a high customer satisfaction and retention rate, that reflects their commitment and reputation in the market.
