Editor’s note: Kelly Lesiczka is a Research Analyst with Technology Business Research.

Cisco’s continuous portfolio expansion around growth initiatives centered on security, network, multi-cloud, advanced analytics, and customer and employee experience drive opportunities across Cisco Services’ portfolio of Advanced Services and Technical Support Services.

In the company’s earnings report announced Wednesday, Cisco’s Services revenue expanded 3.4% to $3.16 billion in 1Q18 following expansions in the company’s software and solutions business combined with growth in Advanced Services engagements.

[Overall, Cisco’s report didn’t excite investors. Shares fell more than 4 percent in after-hours trading to $43.20. The tech giant operates one of its largest campuses in Research Triangle Park. Reports TheStreet.com: “Cisco’s Earnings Report Wasn’t Awful, but Fell Short of Heightened Expectations.”]

Advanced Services which includes advisory and implementation services enabled Cisco to address digital transformation demand in APJC and generate regional revenue growth of 6.5% to $478 million in 1Q18.

As Cisco transitions from a hardware company to an IT solutions provider with a services-led approach, customer experience and customer satisfaction are of increased importance for the company.

As of March, Cisco has one leader responsible for customer success and services. Maria Martinez, a seasoned customer experience professional from Salesforce, took a newly created position at Cisco – Chief Customer Experience Officer – and will also lead Cisco Services.

The announced acquisition of Accompany in May will add AI technology and talent to Cisco’s collaboration solutions portfolio and enhance customer experience, which is a growth initiative for Cisco. TBR expects Cisco Services will gain opportunities around advisory, implementation and optimization services for the new capabilities gained from the acquisition of Accompany, which will be closed in calendar 2Q18.

TBR will provide a detailed analysis on Cisco Services and topics, such as cybersecurity, Internet of Things, acquisitions, partnerships and resource management strategies in its Initial Response that will publish on Thursday, May 17.