State of Disruption Series Part 6: Major MLPS Resurgence

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In part five of our series on the 2019 State of Disruption report, we uncovered one of its primary findings—that SD-WAN is this year’s most disruptive technology. Many believe that SD-WAN will wipe out Multiprotocol Label Switching (MLPS) networking, but the data suggests otherwise. In fact, 40% of current MPLS users plan to make further investments in their MPLS network infrastructure.

Here’s a snapshot of the survey results, broken down by industry and company size:

MPLS Expansion in 2019, by Industry

  • Ecommerce – 52%
  • Financial Services – 51%
  • Manufacturing – 46%
  • Consulting / Business Services – 26%
  • Healthcare / Medical – 6%

MPLS Expansion in 2019, by Company Size

  • $1 million – $10 million – 26%
  • $10 million – $100 million – 35%
  • $100 million – $1 billion – 35%
  • More than $1 billion – 53%

The survey results suggest that large enterprises are doubling down on MPLS, making significant investments in routers, firewalls and software-defined networking (SDN) equipment that is depreciating. As hardware reaches end of life and MPLS contracts expire, our analysts expect to see opportunities on the horizon within this segment.

For now, the numbers speak volumes. MPLS isn’t going anywhere.

Miss part five of our series? Read it here.

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This article was originally published on the Telecom Reseller website here.

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