The document discusses the differences between Layer 2 (L2) Ethernet and Layer 3 (L3) IP/MPLS VPNs, highlighting their respective benefits for various enterprise needs. Key decision factors for choosing between them include cost, scalability, and control, with L2 being more suitable for high throughput at large branches and L3 being ideal for distributed installations. The trend of integrating Ethernet and IP/MPLS VPN features is noted as a growing preference among customers.

1. Carrier Ethernet – The CIO PerspectivePart III: Ethernet and IP VPNs, When to Use Which?RAD Data CommunicationsJune 2011

2. Ethernet and IP VPNs: When to Use Which?Layer 2 (L2) Ethernet and Layer 3 (L3) IP/MPLS VPNs offer different benefits for different needs:

3. L2, L3 Key Decision Factors:Cost, Scalability, ControlLow price per Mbps: Ethernet VPNs are ideal for high throughput typically required at large branches or data centersIP/MPLS VPNs: Fit highly distributed installations, a very large number of sitesLow to medium bandwidth ratesIdeal for remote accessControl: Enterprises comfortable with self managing their IP address space and routing tables prefer Layer 2 Ethernet VPNsBusinesses without in-house knowledge of IP switching fundamentals, prefer turnkey VPNs

4. L2 & L3 Service CombinationExample (Retail industry):Ethernet VPN for data center, distribution centers and headquarters:

5. Meet bandwidth, delay and control requirements for high volume content delivery, storage and disaster recovery

6. L3 VPN for branch connectivity:

7. Ideal for any-to-any VoIP connectivity and point of sale data processing In ConclusionL2 and L3 services are complementary for different customer needsKey decision factors are cost, scalability and level of control desired by the enterprise A growing trend of integrating Ethernet and IP/MPLS VPN features for the same customerCheck out other installments in the series: Part I: Why Choose Carrier Ethernet WAN Services?Part II: Service Levels and SLAs

8. Visit www.ethernetaccess.com for more information