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Five Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise Services
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Five Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise Services


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

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

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  • 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. 1
  • 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. 2
  • 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 3
  • 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 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: Fax: 408.745.2100 Fax: 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 4