This whitepaper identifies the five ways cloud CPE is helping service providers solve for challenges, cut costs and increase innovation.

1. Five Ways Cloud CPE
Reduces Costs and
Enables Innovative
Enterprise Services
How service providers can tackle rising costs and
complexity by virtualizing CPE functions.
Introduction
For operators, serving enterprise markets
requires knowing your customers and delivering
the quality business services they want and
need. Sounds simple, but the more services
you offer, the more boxes proliferate at the
customer premise. Introducing new services to
meet evolving market requirements adds cost
and complexity exactly where you have the
least amount of control.
Cloud-based customer premises equipment
(CPE) provides a solution to this challenge by
gradually moving functionality and equipment
from the customer premise to the service
provider edge network. With cloud CPE, you can
deploy simple, low cost L2 CPE equipment on
premise for physical WAN connectivity reducing
cost and complexity from the customer site
and consolidating services in your network
edge, precisely where you have the needed
equipment, tools, and expert personnel.
Some service providers are already delivering
virtual cloud-based services, such as managed
Layer 3 (L3) VPNs with integrated firewall
capabilities, but this is just the beginning. You
can transition and enhance many existing
services and service components—such as
Network Address Translation (NAT), advanced
security, reporting, analytics, and WAN
optimization—from customer premise locations
to the service providers edge network.
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2. Traditional Physical CPE Model
Enterprise Site X
Innovative Cloud CPE Model
Enterprise Site X
Management
Self-Service
L3 CPE
Appliances
(WAN optimization,
Controller, . . . )
L2 CPE
L2 CPE
Enterprise Site Y
Enterprise Site Y
Service
Complex
SP Edge
Management
L3 CPE
Appliances
(WAN optimization,
Controller, . . . )
SP Edge
L2 CPE
Management
L2 CPE
Cloud CPE Decreases Costs and Increases
Innovation
Cloud CPE and a virtualized services
environment deliver a host of business and
technical benefits for you and your customers.
Here are five ways they can help you reduce
costs and increase revenue potential while
providing a platform for service innovation.
1. Lower support costs
It’s simple arithmetic. Reducing the number of
physical appliances at the customer premise
lowers the probability of equipment failure,
thereby reducing support calls and truck rolls.
It also means that you don’t have to install
new hardware and/or software for every new
service you introduce, reducing the load on your
logistics staff and field technicians.
2. Broaden market appeal and reach
Once enterprise services are decoupled from
CPE, you have a much larger addressable
market for your offerings. New service
introduction costs less, since you don’t have
to qualify and deploy new elements. Having a
lower cost structure not only improves margins
and improves your market competitiveness, it
also lowers barriers for enterprise customers
purchasing new services or service upgrades.
With cloud CPE, you can avoid the situation
where you introduce a new service, but only the
customers with a certain hardware/software
combination can take advantage of it. Similarly,
cloud CPE also enables you to serve customer
needs that you were unable to cost-effectively
address with traditional CPE. For example, some
enterprises may need WAN optimization between
locations only at month end, so they can’t justify
purchasing an always-on WAN optimization
service. With a virtualized environment under
your control, you can turn on services only when
your clients need them—and charge accordingly.
Even better, with a self service portal, customers
can provision and pay for the services they want,
when they want them.
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3. 3. Simplify service activation
By eliminating complex equipment installation
at the customer premise, service provisioning
is quicker and easier, reducing time to revenue.
Further, you can leverage software-defined
networking (SDN) technology to orchestrate
services and perform service chaining. A
compelling cloud CPE-based service offering
should include a client dashboard where
customers can not only view their existing
services, performance, and statistics, but also
modify or activate services themselves.
4. Improve service agility
Many enterprises are already embracing cloud
applications, managed services, and softwareas-a-service (SaaS) models. They realize that
cloud-based services offer cost-effective scale,
flexibility, and as good or better reliability than
on-premise services. The same logic holds true
for cloud CPE services. A centralized service
creation and management model allows you to
respond quickly to customer requests, as well
as other issues such as security threats.
5. Enable service customization
Today’s enterprise customers are like many
other subscriber types. They want more
“personalized” services and they want them
quickly. Cloud CPE addresses these demands
by providing an elastic environment that scales
up or down easily and lets customers try new
services before committing. A self-service
portal or dashboard will let them monitor and
modify services themselves, giving them the
personalization, responsiveness, and control
they want. And with fewer points of failure at
the customer premise and no requirement to
interrupt services for upgrades, customers will
enjoy fewer service disruptions. It all adds up to
more satisfied customers who will be less likely
to switch to a competitor, and more likely to try
your new services.
Conclusion
Virtualization has proved its worth in the
data center, in managed services, and now
at the network edge. The move to cloud
CPE represents a disruptive technology
that supports a natural evolution, driven by
customer requirements for more responsive and
personalized services; it also meets internal
requirements to increase service margins and
streamline operations. Fortunately, it is also a
change that can be managed incrementally, by
introducing virtual services as current physical
CPE reaches end-of-life, for example. You can
also offer a hybrid mix of both on-premise and
cloud services to suit specific business and and
technical requirements.
To learn more about how Juniper Networks can
help you start your journey towards cloud CPE,
visit www.juniper.net/us/en/dm/edge/servicescalability/.
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4. About Juniper Networks
Juniper Networks is in the business of network
innovation. From devices to data centers, from
consumers to cloud providers, Juniper Networks
delivers the software, silicon and systems that
transform the experience and economics of
networking. The company serves customers and
partners worldwide. Additional information can
be found at www.juniper.net
Corporate and Sales Headquarters
APAC and EMEA Headquarters
Juniper Networks, Inc.
Juniper Networks International B.V.
1194 North Mathilda Avenue
Boeing Avenue 240
Sunnyvale, CA 94089 USA
1119 PZ Schiphol-Rijk
Phone: 888.JUNIPER (888.586.4737)
Amsterdam, The Netherlands
or 408.745.2000
Phone: 31.0.207.125.700
Fax: 408.745.2100
Fax: 31.0.207.125.701
www.juniper.net
Copyright 2013 Juniper Networks, Inc. All rights reserved. Juniper Networks, the Juniper Networks logo, Junos and QFabric are registered trademarks of
Juniper Networks, Inc. in the United States and other countries. All other trademarks, service marks, registered marks, or registered service marks are
the property of their respective owners. Juniper Networks assumes no responsibility for any inaccuracies in this document. Juniper Networks reserves
the right to change, modify, transfer, or otherwise revise this publication without notice.
3200031-001-EN Oct 2013
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