Decision to stay or exit a technology based business

The North American division of a global storage company engaged Nous to help assess the future of its tape backup business.

We developed detailed options including exiting or investing to improve performance. Detailed modelling showed the likely impact of various scenarios. The options were based on analysis of the impact of technology on the industry, the preferences of customers and strategies of competitors and the performance of individual business units in North America and Canada.

The client accepted Nous' recommendations, stayed in the business and focussed on the identified performance improvement opportunities. Profitability and cash flow increased significantly after the recommendations were implemented.