Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    Wheelhouse Pulls Plug on Services Business

    By
    Dennis Callaghan
    -
    May 3, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Wheelhouse Corp. is winding down its CRM services business and looking for a cash infusion to keep its fledgling software business going, the company confirmed Friday.

      “We certainly have cut back dramatically,” said a somber Frank Ingari, founder, CEO and chairman of Wheelhouse, in Burlington, Mass. “Were finishing all our projects and exiting that [services] business, but were continuing to try to fund the software part of our business. Were just trying to find an investor.”

      Ingari said Wheelhouse would need about $5 million to keep its software business going for another year and had 60 days to secure new funding. He said the company has a West Coast backer lined up, but that investor wants an East Coast-based partner before it will commit to funding the company.

      Wheelhouse was founded in 1999 and has since burned through about $74 million in funding, Ingari confirmed. The company is now all but out of cash.

      “We had a very ambitious business model,” said Ingari. “We were trying to grow a hosted services, managed services and enterprise software business, and that consumes a lot of capital.”

      Such a capital-intensive company can no longer get funded in the current investment atmosphere, Ingari said.

      “We got caught in a cash squeeze.”

      Ingari said existing Wheelhouse services customers–and he concedes there are few–will be transitioned to other service providers or have their applications turned over to them.

      “Our customers will be taken care of,” he said.

      He declined to say how many Wheelhouse employees will lose their jobs as a result of the cash crunch, but said the company is down to 35 employees from a peak of 200, and that number will continue to fall.

      Wheelhouse entered the enterprise software business in March with the release of its CRM Director product, a tool for integrating data from and managing disparate CRM applications.

      Ingari said at the time that the software release was a natural evolution for Wheelhouse, part of the companys long-term plan to deliver a software product built on the companys developed expertise in CRM services.

      Wheelhouse has “just a couple” of customers for CRM Director so far, Ingari said.

      “We messed up by running out of money exactly as we were launching a new product,” he said.

      “Its a very attractive product, with good ROI,” said Ingari. “If we can get funding, Ill be very excited about it.”

      Wheelhouse is also open to acquisition if new funding doesnt come through.

      “Whatever would be a good outcome for our investors,” Ingari said.

      Dennis Callaghan
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×