Calix Meets the Double-Edged Sword of Services Expansion

Paul Rizzuto – Senior Analyst, Service Provider Infrastructure

Summary Bullets:

  • Calix expanded its professional services portfolio throughout 2016, strengthening existing operator relationships, but experienced the difficulties of organically growing services.
  • Calix displayed significant services revenue growth during Q1 2017, but was challenged by a subsequent cost of revenue increase.

Over the past year, Calix, a network equipment provider specializing in fiber access solutions, made a concerted effort to expand its professional services organization. Acting on customer demand, the vendor, which primarily operates within North America, began investing in services including network planning, product installation, testing, and network turn-up. While Calix had a modest professional services organization prior to its ramp up, the expansion has significantly increased the role of services, both internally and externally. By the end of 2016, Calix hired a new services lead and fully committed to services expansion, adding expertise and capabilities. Read more of this post