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Alteer Going Under???

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rmdmd Posted: Fri, Apr 30 2004 11:04 AM
I heard that Alteer just fired all of their sales reps except for California.

Any confirmation?

Most Venture capital companies go belly up. I wonder if this is what is happening.

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http://www.joelonsoftware.com/articles/VC.html
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DocJeff replied on Fri, Apr 30 2004 12:34 PM
Not just sales people.

There are a bunch of service and support people that have been layed off also.
I think this was due to the recent change in CEO (6 months ago). Typically with a changing of the guard there comes layoffs and restructuring of debt especially with vulture capitalists making the decisions.
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NITS replied on Sat, May 1 2004 3:47 AM
Not to shamelessly bump, but anyone heard anything more about this? I support a number of offices with Alteer.

Nick
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rmdmd replied on Sat, May 1 2004 8:47 AM
quote:
Originally posted by NITS

Not to shamelessly bump, but anyone heard anything more about this? I support a number of offices with Alteer.

Nick



San Diego, California has told me that their support is so bad, no one in San Diego is buying it.

I'm looking, but it sounds as if they are NOT the one to go to.

R MD
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David replied on Sat, May 1 2004 8:58 AM
I WAS an Alteer Sales Rep in Pittsburgh/Cleveland. They closed down the Northeast Division sales team back in mid-January, and I along with 15 other staff members were laid off. (In my severance packet, I got a document or two that I don't think I was supposed to get). The vast majority of those laid off were in sales. 10 out of the 15 were reps. Their biggest issue then was getting practices installed and trained.

Not sure if something else recently occured.

David
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NITS replied on Sat, May 1 2004 12:55 PM
I wasn't saying I was a support rep FOR alteer, just that I do hardware/software/network support for several offices that use it.

Nick
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DocJeff replied on Sun, May 2 2004 6:19 AM
What documents in your severance package? Please share with us - this is all important

quote:
Originally posted by David

I WAS an Alteer Sales Rep in Pittsburgh/Cleveland. They closed down the Northeast Division sales team back in mid-January, and I along with 15 other staff members were laid off. (In my severance packet, I got a document or two that I don't think I was supposed to get). The vast majority of those laid off were in sales. 10 out of the 15 were reps. Their biggest issue then was getting practices installed and trained.

Not sure if something else recently occured.

David

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David replied on Sun, May 2 2004 10:30 PM
quote:
Originally posted by DocJeff

What documents in your severance package? Please share with us - this is all important



A listing of all employees laid off by sex, age and position.

The positions laid off were the entire Northeast Division sales Team (The Northeast Area VP resigned the evening before), other sales reps from selected area's, one installer, one trainer and a couple of corporate positions. There were a number of sales reps, in non Calfornia locations, that remained. This happened in mid-January.

New CEO took over, but had some health issues that kept him from taking over full control for a couple months. The former CEO moved to Sr. VP of Sales and Marketing. He has sinced resigned.

One of the biggest issues seemed to be getting practices installed and trained. I had a practice that was sold in September, and as of February, was still waiting to be trained.

Sales in 2001 were $500K; 2002 - $5 Million and estimated in 2003 were close to $13-14 Million. The growth was not managed properly, IMPHO.

David

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David replied on Mon, May 3 2004 3:41 AM
Just got off the phone with my old area VP from Alteer. Seems last Wednesday (4/28) Alteer laid off 30 people and another 10 on Thursday. He did not have time to discuss in any detail, but will call me later today. I will post after I find out more info.

David
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NITS replied on Tue, May 4 2004 1:50 AM
David,

Looking to see your update soon.

I talked to someone I know with Alteer, and they said that Alteer is "restructering" to a VAR mode of reselling and support regionally. So you will still be able to buy and get support directly from Alteer, but will also be able to purchase and get support from regional offices. I'm a little more wary as this is going on, as this certienly doesnt mean they are rolling in the $$.

Nick
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David replied on Tue, May 4 2004 2:31 AM
quote:
Originally posted by NITS

David,

Looking to see your update soon.

I talked to someone I know with Alteer, and they said that Alteer is "restructering" to a VAR mode of reselling and support regionally. So you will still be able to buy and get support directly from Alteer, but will also be able to purchase and get support from regional offices. I'm a little more wary as this is going on, as this certienly doesnt mean they are rolling in the $$.

Nick



This business plan is how they first started. They sold direct to southern CA and thru Solution Partners thoughout the country. In 2001 they received VC money and went direct country wide.

Just "restructuring" is all I have at the moment.

David

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Tex replied on Wed, May 5 2004 1:36 PM
I talked to a client today who said their rep and others in Texas were let go. She indicated that support was an issue and she is very concerned now. Any new information?
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David replied on Thu, May 6 2004 3:03 AM
quote:
Originally posted by Tex

I talked to a client today who said their rep and others in Texas were let go. She indicated that support was an issue and she is very concerned now. Any new information?



Not really. It appears, as previously posted, they are changing their business model to sell/install/train thru VAR's outside of the west coast. Installation/training/service seems to be the common thread of issues and now they can focus their resources on the service issues.

David

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NITS replied on Thu, May 6 2004 3:30 AM
My question comes back to support and stability.

First support. I was told that support would either remain from Alteer corporate, or from the VAR's. Practices would be able to choose.

Stability. Anytime a company changes like this, there has to be an underlying problem. My concern is for the practices that have bought Alteer and no have some risk involving whether their product will continue to evolve, and be supported.

Nick
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