What limitation of traditional VPN technology does MPLS VPN address?

MPLS VPN addresses the limitation of conflicting address spaces, which is a common challenge in traditional VPN technologies. In traditional setups, multiple customers or sites might use overlapping IP address ranges, making it difficult to route traffic correctly without causing conflicts. MPLS VPN resolves this issue by employing a method of segregating traffic based on labels rather than requiring unique global address spaces for each customer. This allows organizations to use the same private IP addresses without concern, as the MPLS backbone can differentiate between the different client's data flows based on the MPLS labels and other configurations.

This capability is essential in multi-tenant environments, or when different departments within a larger organization use the same internal address schemes. Unlike traditional VPNs that might struggle with these conflicts, MPLS ensures that each customer's data is kept separate and secure, allowing for efficient communication and routing within a more scalable framework.