Managed Service Providers (MSPs) are constantly looking for new revenue streams, and Managed Customer Premises Equipment (CPE) services present a lucrative opportunity. From routers and switches to firewalls and IoT devices, businesses rely on CPE for seamless operations—but managing them in-house can be complex and costly.
This is where MSPs step in. By offering Managed CPE Services, you can deliver value, improve client efficiency, and create a predictable revenue model. But how do you effectively monetize these services while ensuring scalability and customer satisfaction?
In this article, we’ll explore:
✔ What Managed CPE Services are and why businesses need them
✔ Key strategies to monetize CPE management effectively
✔ Pricing models that maximize profitability
✔ How to upsell additional services for higher revenue
✔ Best practices to ensure long-term client retention
Let’s dive in.
Why Managed CPE Services Are a Goldmine for MSPs
Customer Premises Equipment (CPE) includes all the hardware devices located at a client’s site—routers, modems, firewalls, VoIP phones, and even IoT sensors. Managing these devices requires 24/7 monitoring, updates, security patches, and troubleshooting, which many businesses lack the expertise to handle.
By offering Managed CPE Services, MSPs can:
✅ Reduce downtime with proactive monitoring and maintenance
✅ Enhance security with regular firmware updates and threat detection
✅ Cut costs for clients by eliminating the need for in-house IT staff
✅ Create a recurring revenue stream through subscription-based models
The demand for managed CPE is growing, especially with the rise of remote work, cloud adoption, and IoT expansion. Businesses need reliable connectivity and security—MSPs that provide these services stand to gain significantly.
How to Monetize Managed CPE Services: 6 Winning Strategies
1. Offer Tiered Service Packages
Not all clients have the same needs. By structuring Basic, Advanced, and Premium tiers, you cater to different budgets while upselling higher-margin services.
- Basic Tier: Remote monitoring, basic troubleshooting
- Advanced Tier: Proactive maintenance, security patching
- Premium Tier: 24/7 support, hardware replacement guarantees
This approach lets clients choose what fits their budget while encouraging upgrades.
2. Implement a Subscription-Based Model
Instead of one-time fees, charge a monthly or annual subscription for CPE management. This ensures:
✔ Predictable revenue
✔ Long-term client retention
✔ Easier scalability
Example pricing:
- $50–$150/month per device (depending on complexity)
- Bulk discounts for clients with multiple locations
3. Bundle CPE Management with Other Services
Clients are more likely to buy when services are bundled. Consider pairing CPE management with:
🔹 Managed Network Services (SD-WAN, firewalls)
🔹 Cloud Management (Azure/AWS connectivity)
🔹 Cybersecurity Solutions (endpoint protection, SIEM)
Bundling increases Average Revenue Per User (ARPU) and strengthens client stickiness.
4. Charge for Hardware-as-a-Service (HaaS)
Many businesses prefer opex over capex. Instead of selling hardware upfront, offer it as a leased service with management included.
- Example: Lease a firewall for $99/month, including installation, updates, and support.
- Benefits: Higher margins, continuous revenue, easier upgrades.
5. Provide Value-Added Services for Extra Revenue
Upsell additional services such as:
✔ On-demand troubleshooting (billable hourly)
✔ Network performance optimization reports
✔ Compliance audits (HIPAA, PCI-DSS)
These high-margin add-ons boost profitability without requiring heavy resources.
6. White-Label Solutions for Other MSPs
If you’ve built a robust CPE management platform, consider white-labeling it for smaller MSPs. This creates a B2B revenue stream while expanding market reach.
Pricing Models That Maximize Profitability
Choosing the right pricing model is crucial. Here are the most effective approaches:
1. Per-Device Pricing
- Charge a fixed fee per managed device (e.g., $75/month per router).
- Best for clients with a predictable number of devices.
2. Per-User Pricing
- Ideal for businesses where multiple users share the same CPE (e.g., $30/user/month).
- Simplifies billing for clients with dynamic needs.
3. Flat-Rate Pricing
- Offer an all-inclusive package (e.g., $1,500/month for full CPE management).
- Works well for enterprises with large, complex setups.
4. Usage-Based Pricing
- Charge based on bandwidth consumption, uptime SLAs, or support tickets.
- Appeals to clients who prefer pay-as-you-go models.
Best Practices for Long-Term Success
To ensure your Managed CPE Services remain profitable and scalable:
🔹 Automate Monitoring & Alerts – Use tools like PRTG, Auvik, or Domotz to reduce manual work.
🔹 Offer SLAs with Penalties for Downtime – Builds trust and justifies premium pricing.
🔹 Provide Regular Reporting – Show clients the value they’re getting (uptime %, threat blocks, etc.).
🔹 Train Your Team on Multi-Vendor CPE – The more devices you support, the more clients you attract.
🔹 Stay Ahead of Trends – IoT, 5G, and edge computing will drive future demand.
Final Thoughts: Turning CPE Management into a Revenue Powerhouse
Managed CPE services offer MSPs a scalable, high-margin revenue stream in an era where businesses increasingly rely on outsourced IT. By implementing tiered pricing, subscription models, and strategic bundling, you can maximize profitability while delivering exceptional value.
The key is to position yourself as a trusted partner—not just a vendor. Clients will pay a premium for reliability, security, and peace of mind.
Now, it’s time to take action. Audit your existing offerings, identify gaps, and launch your Managed CPE Services with a clear monetization strategy.