A customer premise equipment (CPE) associated with a customer premise forms a virtual machine (VM) and allocates a portion of processing resources and a portion of communications resources included in the CPE to the VM. The processing resources include, for example, general purposes processes and specialized processors for performing certain tasks. The communications resources relate to exchanging data with the CPE. The VM is assigned to a service provider, and service data associated with a service is received from the service provider. The service data to be processed by the VM and the processed service data is forwarded to user devices at the customer premise to provide the service to the user devices. The CPE may form different VMs for different service providers.