Charles Wu wrote:

It is worth noting that you lose the benefits of routing protocols when you
bridge your network

The above is the number one reason against using VLANs for layer 2 transport. A second important issue to consider is management. Every device from end-to-end where you want to deliver layer 2 transport requires configuration if you use VLANs.

Both of the above issues are solved with MPLS. First, MPLS rides on top of your layer 3 network giving you all the benefits of routing protocols. Second, you only need to configure the edge device on either side of a layer 2 virtual circuit. All the devices in-between --including protection paths don't require additional configuration for each virtual circuit.

-Matt
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