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Tech-Driven Data Center Turnaround
Private Equity
A leading European PE House with a strong focus on technology business transformation had recently acquired a data center business which had been spun out of a larger enterprise.
The Ask
The PE House believed that the data center business has underinvested in technology, lacked a discernible USP and had allowed competitors to overtake them in what should have been a positive geographic market and sector. The client’s focus was on identifying 3-4 key technology building blocks which could deliver strong ROI, improve the attractiveness of the assets and accelerate business transformation.
The Solution
We first completed an assessment with a technology lens of the existing infrastructure. It was readily apparent there was a disconnect between the tech stack and the business development strategy which had been aimed at large technology clients who could contract for longer terms but had onerous resilience and performance metrics built into contractual obligations. We worked with the client to narrow down a core strategy which was achievable within a 2–3-year window.
The Outcome
Once the strategy had been challenged and reset, we benchmarked the company against peers globally and identified the key gaps and underperformance against best in class. Three key areas of underperformance were identified where tech solutions could have an immediate impact. We analysed these areas on ROI and ease of implementation. The firm lacked a culture of tech adoption so using vendors with strong project and operational support was vital which narrowed down the tech options which we curated, scored and benchmarked.