RE: Economic Justification / Rationale for MPLS

Whatever the relative technical merits of MPLS/BGP VPNs over other layer 3 VPNs (GRE, IPsec, L2TP etc) there are many service providers around the world selling these services. There is clearly a business need for them, and obviously customers how will buy them (well, we have managed to sell them anyway!), so there is an economic reason to deploy MPLS.

Layer 2 based LAN extension services will only extend this market further and again uses MPLS as its base transport mechanism.