An application gateway including application service programming logically positioned on a user premises side of a network demarcation forming an edge of the wide area network at a user premises can provide managed services to a user and one or more endpoint devices associated with the application gateway. The application gateway can be controlled remotely by the application service provider through a service management center and configured to execute an application service provided from the application service provider. The application gateway executes the application service at the user premises independent of application services executing on the application service provider's network. An application service logic manager can communicate with an application service enforcement manager to verify that the request conforms with policy and usage rules associated with the application service in order to authorize execution of the application service on the application gateway, either directly or through endpoint devices.