Layer 3 VPNs

Cisco IOS MPLS Layer 3 VPNs is the most widely deployed MPLS technology.

MPLS Layer 3 VPNs use a peer-to-peer VPN Model that leverages BGP to distribute VPN-related information. This peer-to-peer model allows Enterprise subscribers to "outsource" routing information to Service Providers, resulting in significant cost savings and a reduction in operational complexity for Enterprises. Service Providers can then offer value-added services like QoS and Traffic Engineering, enabling network convergence that encompasses voice, video and data. MPLS Layer 3 VPNs can be deployed with a MPLS TE and Fast Reroute to offer "Tight SLAs". QoS-based offerings vary from two to five classes of services.

MPLS Shared Services leverage mechanisms like DHCP and Network Address Translation (NAT) to enable the outsourcing of address management, which results in the creation of profitable, revenue-generating services.

Subscribers who need to transport Video traffic can enable Multicast VPNs.