MPLS is a high-performance packet forwarding technology that integrates the performance and traffic management capabilities of data link layer (Layer 2) switching with the scalability, flexibility, and performance of network-layer (Layer 3) routing. It enables service providers to meet challenges brought about by explosive growth and provides the opportunity for differentiated services without necessitating the sacrifice of existing infrastructure.
Specifically, MPLS can efficiently enable the delivery of IP services over an ATM switched network. It supports the creation of different routes between a source and a destination on a purely router-based Internet backbone. Service providers who use MPLS can save money and increase revenue and productivity.