Who Will Actually Benefit from Entellium’s Demise?

Now that the Entellium situation has begun to slow down in Seattle I ask the question, who will actually benefit from the unfortunate events at Entellium? There are many employees left standing outside after the massive layoffs and there are a lot of businesses and organizations who fear the safety of their data, wondering if the software they use to manage their business will just be turned off one day, there was already a brief period last week where the Entellium web site was down. Theories have been flying around the web of what will come of Entellium employees and customers, Avidian’s Founder and CEO James Wong expressed interest in purchasing some of Entellium’s assets. Meanwhile CRM vendor Salesboom.com issued a formal release aimed at Entellium’s Employee’s and Customers with a “Rescue Initiative”. This rescue initiative invited laid off Entellium’s staff to send their resumes to Salesboom.com for possible employment. Also in the release Salesboom.com offered free accelerated data migration to Entellium customers.

These are just two hints as to what may come of Entellium but I want to look at the reality of the situation outside of the offers to purchase Entellium assets. To start here is a list of the companies best situated to benefit from the Entellium fiasco; Salesforce.com, Netsuite, Salesboom.com, ACT!, and Microsoft. These are some of the top CRM vendors in the market today and can all take on Entellium customers. There hasn’t been much mentioned from Salesforce, Netsuite, Microsoft or ACT! regarding these events; all I noticed is that Salesforce has purchased Entellium as an adword to ensure those seeking Entellium find Salesforce. What I find most interesting is that no one has mentioned ACT! as an organization who stands to gain many of Entellium’s customers since a lot of those customers moved to Entellium from ACT! ACT! has made their business on SMBs by providing contact management solutions and SMBs are what made up the majority of Entellium’s customers. I see a problem with Entellium customers moving to ACT! they will not be receiving a true on demand multi tenant CRM solution which they could receive from Salesforce, Netsuite or Salesboom.com.

A quick look at the other CRM vendors; Salesforce is almost always considered when businesses are looking for CRM which makes me think that for some reason Entellium customers have already evaluated Salesforce and for whatever reason decided to go with Entellium instead. Looking at Microsoft, this giant is a new comer to the CRM world, although they have the resources to develop a great CRM I believe they are still too far behind the game with their CRM inside Outlook approach. Netsuite is another large company who has its roots in ERP which shines through to their CRM, I find Netsuite’s CRM to lack some of the features that Salesforce and Salesboom have. With this reasoning I am not surprised with Salesboom.com’s efforts with their Rescue Initiative positioning themselves directly in front of Entellium customers. Where ever Entellium customer land I’m sure CRM vendors will be more than happy to welcome them.