Channel Q&A: Steve Clark, CEO of Calyx

q & a

What has been your journey to CEO of Calyx?

After leaving the forces, I spent some years working as a consultant before joining Everlogic as a project manager. I moved up the ranks via sales to become technical director before the company was sold to Azzurri in March 2004. I stayed with Azzurri and again worked my way through the ranks, first becoming technical services director where I was responsible for the integration of 16 companies into the Azzurri fold. I left in June 2012, by which time I was responsible for the whole of operations, with a team of over 500 people. I’ve been at Calyx for 18 months now.

What has been your best moment in business?

Winning back the trust of a customer. There had been a few issues and a competitor had made a bid for the business. The customer was ready and willing to leave. But we not only managed to turn it round, they went on to spend over £6m over a five year contract and the customer is still with the company even now. It taught me the situation is only lost if you give up.

What was your biggest regret?

Selling a business too early – sometimes you have to take a risk to get the bigger rewards.

What is the best business advice you have ever been given?

Look after your people. The success of any business is down to the people in it. If you don’t look after them, you’ll never fulfil the potential of the company. Culture is everything. People come to work and spend on average eight hours a day at their desks, five days a week. That is a significant investment of their lives into our business, so, as a business, we have a real responsibility to make that investment work for them. At Calyx, this has been a major initiative for us over the past 12 months, and off the back of that initiative we have been awarded the Investors in People Bronze accreditation.

Which company (other than yours) do you admire the most and why?

Apple. What Steve Jobs did with that company is inspirational. He’s not only revolutionised the way we use technology in the home and at work, he’s affected all sorts of other industries as well – the music industry being the obvious example. And he’s achieved it through absolute attention to even the minutest detail. He wasn’t afraid to change something if he thought it was wrong – even if it was at the last minute and meant losing money. For him, it was all about creating a product the customer really wanted – and he has succeeded time and time again.

What is the single biggest issue facing the channel in 2014?

Without doubt the need to move from a capex to an opex model of selling. It’s not just that it affects cash flow through the business – although that alone creates barriers – it’s the fact that it requires substantial investment, especially across the financial and accounting systems.

The move is, however, undeniable. And it’s not just the voice world – everyone seems to focus on the PBX when discussing this issue. We are seeing hardware manufacturers across the technology sector – including switching, routing, firewalls – literally all hardware - investing and creating new pricing models to help adapt, and businesses are demanding the flexibility to pay either on a capex or opex model. It will essentially become a point of differentiation. Businesses that can offer their customers flexibility around their payment options will be far more appealing than those insisting on large upfront payouts.

What’s next for Calyx?

We’ve spent the past 18 months stabilising the business, particularly financially. That work is now complete and we looking towards a return to growth for the company.

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