Everything else is 'clearly' a service? On what basis? You buy a product, it has these features, you can do these things, that's the product.
Being able to play music on a 'smart speaker' from my phone isn't a service, it's just a feature of the product. If you sell a product with features that require you to host some servers somewhere publicly accessible on the internet, that doesn't make that product feature a service.
Don't like that? Don't include those features in your product. Design them better so you don't have to forever maintain these servers.