ATC focused on providing bedside devices that met the patients’ needs while recovering in the Hospital. The system was integrated with the hospital ERP, specifically with the nurse interface for patient call needs as well as delivering mandatory health and welfare video content. The systems also provided many ancillary services including English translation, hospital pharmacy fulfillment and audio/video entertainment. Hospital hardware and software must meet many regulations to operate in the segment. Additionally, this Company was qualified to provide systems to the Veterans Administration. Revenues were growing while competing in a long sales cycle environment. Company struggled to achieve and maintain profitability consistent with other software companies. The Challenge: Analyze the hardware sales and installation segment of the business to make it profitable. Modify the software business model to achieve margins comparable to similar companies. The Work: We evaluated the bidding, installation and service of the hardware business shifting it from a fixed cost business to a variable cost business. - Transitioned the business model to move the ownership and capital cost to the Hospital which had large capital budgets better access to cheaper capital. - Transitioned to a cloud model using off-the-shelf software from a basement installed head-end for each client. Migrated the software from an upfront bundled Hospital price to a per bed SAAS model. The Results: The company returned to profitability with strong margins and was successfully sold to a strategic buyer.