MPLS has been in the IT market for quite some time now. Before its introduction, Service providers bore the burden of providing services to customers using IP routing, VPN and Layer 2 technologies. MPLS was welcomed by everybody and is now the de facto technology used in service provider and Large data Centers.
While traditional IP Routing uses forwarding packets of packets based on the destination IP address, Routing lookups are performed on every hop and every router may need full Internet routing information. MPLS is much faster than traditional IP Routing and devices the concept of label to allow forwarding (rather switching) of packets much faster and without overloading the CPU.
Traditional routing performs routing decision based on IP header , MPLS considers MPLS header with packets and hence takes all forwarding decisions based on the MPLS header unlike traditional routing
Below table provides and detailed view of how both MPLS and IP Routing differ from each other –