Resource Blog

The Ins and Outs of Virtual CPE for SMBs

Written by ronbeltz | Jan 8, 2015 3:00:55 AM

Thanks to virtual CPE (customer premises equipment), business assessment and innovation can now merge comfortably with technology and the demands placed on it by inner-company network users. From management to customers, everyone with CPE works in real time without the challenges of distance, time, or capability.

No longer just a viable option for large companies, virtual CPE is a prospective bargain for businesses of all sizes. While SMBs keep pace with technology's networking capabilities, there are challenges in meeting the technical and administrative aspects. Virtual CPE offers a managed network solution that brings new potential to small and mid-sized businesses, increasing service, velocity, and profit.

Challenges

Virtual CPE does not come without challenges:

  • Security: One of the problems facing SMBs when considering making the switch is security. This is a natural consequence of expanding boundaries between the Internet and private networks. Demands for quality service also must be considered as bandwidth needs grow with need and use.
  • Maintenance: Another drawback to virtual CPE is maintenance. While large companies can afford IT specialists for unique problems or requirements, they must also maintain employee training to stay adaptable and efficient. SMBs seldom have additional budget provisions to hire certified IT staff to solve problems or perform the required training in-house that comes with a network-centric business choice.

A CPE managed network is convenient for big businesses to care for daily operations and security, and it provides quality service and security. While these are great benefits for an SMB, the cost of a managed network may outweigh the benefits. In addition, the lack of personalized service for unique needs might be a challenge for some.

How Virtual CPE Functions

Virtual CPE uses a standard NID (network interface device) with CPE software moved to the cloud to function virtually. The provider's network functions also run from the cloud in a virtual data center. This requires minimal support and is accessible to users by way of plug-and-play configuration.

A software adaption is used by subscribers, and it is all maintained through the cloud. These features save money and time and offer users availability from any location.

Increased Potential for Profitability

Recent studies support the theory that virtual CPE is the best choice. Virtual CPE, the studies showed, can save up to 50 percent in labor, 60 percent in repair, and 80 percent in maintenance expenses over the period of five years. Studies also show that the potential to earn a 36 percent NPV (net present value) increase in the same time span, with a staggering 118 percent on the return investment in virtual CPE.

In-House Solutions

To compare, in-house solutions bring a variety of problems. Traditional CPE must be upgraded or replaced. Over time, different types of solutions being in a variety of hardware and software not always compatible or reliable. On a whole, it is a challenge to maintain and costly to modify. Traditional CPE equipment can be a business money pit, requiring costly upgrades, maintenance, and repair. The constant attention and interruption of maintaining it can affect productivity in the long term.

The Best Choice

New choices for SMBs mean streamlining network requirements at lower costs with better delivery. Thanks to virtual CPE, a managed network service is a possible choice with great potential to help profits grow and benefits widen.

Networking services no longer need be a barrier to growing a business and keeping an eye on the future. After considering the pros and cons, virtual CPE is a beneficial choice that can help a business prosper.