The point of demarcation limits is a service provider’s exposure and risk. According to this report on Network World, the growing popularity of cloud computing and hosted communications services promises to dramatically change the picture — perhaps most dramatically in the wiring closet.
“With cloud computing and hosted services, most of the logic and communications software moves to the service provider data center, allowing much of the old equipment in the wiring closet to be removed and replaced with a new generation of customer premise equipment, the Multi-Service Business Gateway (MSBG).
“Manufactured by data and VoIP equipment companies, a MSBG is a single device that terminates the physical connection from the service provider, converting the physical and data protocols to match the customer’s communication needs. In many cases the MSBG also includes a router, firewall and security software, and provides some on-site logic for survivability in cases where the connection to the network is severely congested or lost.”