Gartner Research

Virtual Customer Premises Equipment Creates New Revenue Opportunities for CSPs in Security as a Service and SD-WAN

Published: 23 February 2016

ID: G00298438

Analyst(s): Deborah Kish , Akshay K. Sharma, Lawrence Pingree


This research will explore how to best leverage network function virtualization to deliver improved service flexibility, reduce operational costs and increase security. Product teams and network architects must properly exploit these technology trends while addressing transformation issues.

Table Of Contents
  • Impacts


  • NFV Combined With Software-Defined Network Is a Growth Enabler
  • Definition of vCPE
  • vCPE Is a Key to Unlock Greater Customer Profits and Stickiness
  • Security Considerations During a vCPE Rollout — Protect the Network Infrastructure and the Client Traffic, but Consider All the Ramifications

Impacts and Recommendations

  • NFV and vCPE provide a simpler and more cost-effective way to offer and deliver network security solutions, and they create new revenue streams for CSPs
  • SD-WAN is a newly emerging capability built specifically to support branch office connectivity and dynamic CSP environments in a more simplified and cost-effective manner
  • vCPE helps reduce maintenance and operational costs, while key CPE functions can be shifted to the CSP's network and cloud environments
  • vCPE specifically enhances vendor selection for CSPs, allowing them to more rapidly manage and introduce multivendor IP network capabilities into the CPE

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