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1. 1
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 virtualized CPE (vCPE), you can deploy simple, low cost L2 CPE for physical WAN connectivity
to reduce cost and complexity on the customer site. Virtualized CPE also lets you consolidate
sophisticated services in your network, precisely where you have the required equipment, tools, and
expert personnel.
Some service providers are already delivering virtual cloud-based Layer 3 (L3) VPNs with integrated
firewall capabilities, but this is just the beginning. You can transition many services and service
components—such as Network Address Translation (NAT), advanced security and reporting—from
customer premise equipment to the service providers edge network.
This paper highlights five ways that vCPE can help you contain network cost and complexity.
Virtual CPE Decreases Costs and Increases Innovation
Virtual CPE and a virtualized services environment deliver a host of business and technical benefits
for you and your customers that help 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
With enterprise services decoupled from CPE, new service introductions will cost less, since you
don’t have to qualify and deploy new CPE elements. Having a lower cost structure not only improves
margins and market competitiveness, it also lowers barriers for enterprise customers purchasing
new services or service upgrades.
Five Ways Virtual CPE
Reduces Costs and
Enables Innovative
Enterprise Services
How service providers can contain costs and complexity
by virtualizing CPE functions.

2. 2
With vCPE, you no longer have to worry about rolling out new services that only customers with
the right combination of hardware and software can use. Similarly, vCPE also enables you to serve
customer needs you were unable to cost-effectively address with traditional CPE. For example,
some enterprises may only need WAN optimization between locations at month’s end, so they can’t
justify purchasing an always-on WAN optimization service. With a virtualized environment under your
control, you can turn services on 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.
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 not only can 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 software-as-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 want more “personalized” services and they want them quickly. Virtual
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 customization, 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.
Management
L3 CPE L2 CPE
SP Edge
Appliances
(WAN optimization,
Controller, . . . )
Management
L3 CPE L2 CPEAppliances
(WAN optimization,
Controller, . . . )
Traditional Physical CPE Model
Enterprise Site X
Enterprise Site Y
Self-Service
Service
Complex
L2 CPE
Management
L2 CPE
Innovative Cloud CPE Model
Enterprise Site X
Enterprise Site Y
SP Edge

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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.
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3200031-003-EN Jan 2015
Conclusion
Virtualization has proved its worth in the data center, in managed services, and now at the network
edge. The move to vCPE 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 vCPE, visit
http://www.juniper.net/us/en/products-services/routing/mx-series/.
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