Your business network relies on more than just an internet connection, it depends on the devices that make that connection work. These devices, known as customer premises equipment (CPE), sit at your business location and link your network to your service provider. They play a direct role in how fast, secure, and reliable your connectivity is every day.
Whether you manage a single office or hundreds of locations, understanding CPE can help you make smarter decisions about your network. Read on to learn what a CPE network is and best practices for keeping it running at peak performance.
In networking, CPE refers to any equipment that resides on the customer’s side of a service provider’s demarcation point. The demarcation point (or "demarc") is where the responsibility for network infrastructure shifts from the service provider to the customer.
Common examples include:
CPE devices make it possible to access the services you purchase from your provider, including internet access, voice services, or private WAN connectivity.
The right CPE for your business will depend on your network architecture, service provider, and operational needs. Here are the main types:
A passive CPE device doesn’t actively route or process data, but instead serves as a physical connection point between your network and your provider’s infrastructure. Examples include network termination units, structured cabling, and optical network terminals (ONTs).
An active CPE device performs routing, switching, firewalling, or protocol translation. This includes routers (which handle internet routing), firewalls (that filter and protect traffic), and VoIP gateways (which manage voice calls).
Unmanaged CPE means your IT team owns and supports the hardware, while managed CPE means your service provider is responsible for maintaining and monitoring the device. Managed solutions can be helpful for multi-location businesses that want consistent performance and centralized support without stretching their in-house staff too thin.
In a CPE network, each endpoint location has equipment installed that connects back to the service provider’s infrastructure. This setup may support:
The service provider may supply and configure the CPE device, or the customer may purchase and install it independently. Either way, the quality of your connection and the overall performance of your network will depend on how well-configured your CPE is.
Here’s what you get when you choose the right devices for your CPE network:
High-quality CPE helps maintain a consistent link between your business locations and your service provider. Capabilities like built-in failover can keep your network online during outages or unplanned disruptions.
CPE devices may include features like firewalls, intrusion detection, and VPN tunneling to keep your business network secure – a must for organizations that manage sensitive customer data or operate in heavily regulated industries.
Cloud-managed CPE lets IT teams configure and troubleshoot devices from a single, centralized portal, simplifying operations, reducing on-site visits, and helping techs respond to issues faster.
As your organization grows, your CPE network needs to scale. Modular, cloud-managed, or software-defined CPE gives you flexibility to upgrade without a full infrastructure overhaul.
Using the right CPE devices makes it easier to diagnose and resolve problems faster and more accurately. Standardized, high-quality equipment reduces the variables technicians need to consider, which means less downtime and fewer disruptions to your business operations.
Here are some best practices to help you get the most from your CPE investment:
Using the same models and configurations across all your sites makes it easier to support and troubleshoot your CPE network. Plus, standardization makes vendor negotiations and bulk purchasing more cost-effective.
Cloud-enabled CPE makes it easier to detect issues, push firmware updates, and adjust configurations from a central dashboard, which can be especially valuable for distributed enterprises.
Like any other part of your IT infrastructure, your CPE network will need periodic updates or replacements. Including CPE upgrades in your annual budget ensures you’re not caught off guard when hardware reaches end-of-life or new features are required.
While your IT team or provider will handle most issues, training local staff to recognize basic problems like loose connections or power issues can help minimize downtime – especially for branches in remote or unmanned locations.
Maintain an inventory of your CPE devices, including their locations, serial numbers, firmware versions, and support contacts. This documentation is essential for security compliance, troubleshooting, and disaster recovery planning, so make sure to keep it updated.
Outdated firmware and weak security settings are common vectors for data breaches and other attacks. Reduce these risks by regularly reviewing your CPE devices to ensure you have the latest security patches and strong configurations in place.
Managing CPE across multiple locations may create challenges that aren’t always immediately visible. Differences in infrastructure, vendor requirements, and on-site conditions can create inconsistencies that affect your network’s performance – so it becomes harder to keep every branch office operating at the same standard.
At TailWind, we work with businesses to simplify CPE deployment and management. Whether you need structured cabling, network design, or hands-on CPE installation, we bring decades of experience managing hardware for distributed enterprises. We also offer managed IT services that include ongoing support for your network equipment, so you can focus on your business while we handle the tech.
Looking for a partner to support your customer premises equipment? Contact us to learn more about how we can help.