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

Happy Birthday to AVA: A One-Year Checkup on Nokia’s Cognitive Platform

Paul Rizzuto – Senior Analyst, Service Provider Infrastructure

Summary Bullets:

  • In the year since Nokia announced its AVA cognitive services platform, the vendor has announced a slew of services leveraging the technology, signaling an intention to incorporate the platform widely.
  • Predictive repair and the MIKA digital assistant represent two such innovations as the result of AVA, but the nature of cognitive platforms asserts the real story is the refinement that follows traction.

It has been a full year since Nokia unveiled AVA, a cognitive platform focused on revolutionizing service delivery via automation, virtualization and analytics (AVA!). At the time, Nokia announced it would adapt the platform to the delivery of care services, network implementation, network performance optimization and managed services. As could be expected, the integration of the platform experienced something of a ramp-up period; Nokia has devoted much of the last year to building services and gaining mindshare around the concept of ‘extreme automation,’ cementing its status as the most vocal vendor in this space. Services launches since, including predictive optimization, predictive repair and the introduction of a digital assistant, MIKA, have all incorporated AVA to some extent. The launches confirm the vendor’s commitment to the AVA platform as a differentiator in service delivery efficiency and make clear that a continuously improving AVA platform will underpin Nokia’s entire services organization. Read more of this post

ZTE Getting Serious About Global Expansion: Investment in Netas Positions ZTE to Pursue ‘One Belt, One Road’ Opportunities

Paul Rizzuto - Senior Analyst, Service Provider Infrastructure

Paul Rizzuto – Senior Analyst, Service Provider Infrastructure

Summary Bullets:

  • ZTE invested in Turkish systems integrator Netas, an aggressive move to improve its services reach and vie for a key partner role in China’s ‘One Belt, One Road’ initiative.
  • In addition to geographic expansion, the investment enables ZTE to gain greater access to Netas’ non-telco business.

In December 2016, ZTE announced an agreement to acquire a minority share of Turkish systems integrator Netas. While Netas will remain an independent company, it will gain increased access to ZTE’s portfolio of products, services and solutions. For ZTE, the investment represents a significant foray abroad for the Chinese vendor. Located in a regional linchpin between Europe and Asia, Netas could provide a bridge between east, west and south as ZTE looks to expand its services organization. Read more of this post