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VPLS - a subject and Product Global Crossing can learn about
As with all technologies VPLS has a scalaing limit. However Cisco lists the current limit at around 600 devices (locations). THis may not accomodate al enterprise network, but it will handle most.
Otherwise, the reasons customers choose VPLS is control of their routing environment as opposed to outsourcing or trusting the carrier. Also, MPLS typically involves route re-distribution into BGP. Customers also choose VPLS when they are migrating from a FR or ATM network because they maintain a layer 2 environment. ie it's in their comfort zone and they don't need to buy new Layer 3 management tools
You were correct about the router requirement, but as you can see saving the cost of a router is not the reason customer choose VPLS.