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Consumer Premises Equipment (CPE)—often called a “home router” or “residential gateway” in a residential environment—runs a collection of essential functions (e.g., DHCP, NAT) and optional services (e.g., Firewall, Parental Control, VoIP) on behalf of residential subscribers. More sophisticated enterprise functions are also common (e.g., WAN Acceleration, IDS), but this paper focuses on residential functions. By extending the capabilities of CPE in the cloud, new value-add services as well as customer care capabilities can be provided more easily.