Institute of Industry Analyst Relations (IIAR)The IIAR is a not-for-profit organisation established to raise awareness of analyst relations and the value of industry analysts, promote best practice amongst analyst relations professionals, enhance communication between analyst firms and vendors, and offer opportunities for AR practitioners to network with their industry peers.
This year’s keynote theme: the Continuous Next Strategy
Gartner Symposium, Gartner’s flagship event in Europe, attracted more than 8,000 visitors this year, and met or exceeded expectations, at least mine. The analysts were brilliant, inspiring speakers on stage and great advisors in the one2one meetings.
This was the first time in Europe that Mike Harris delivered the keynote, having taken over from Peter Sondergaard in the summer. It was a hard act to follow: Many attendees knew Sondergaard as an exceptionally gifted and inspiring speaker. Harris was different, of course. His presentation was strong and dynamic – and he came across as being very present, open and humble.
Harris outlined Gartner’s “Continuous Next” concept, referring to how the pace of innovation is accelerating and disrupting business models, and outlining the need for organizations to adapt to be successful. CIOs must adopt the role of business innovator and enabler, he said, and must interact with C-suite leaders to secure the foundation of digital business. In the era of Continuous Next, the CIO assumes responsibility for digital products and therefore controls not only technology and operations, but should also drive cultural change for the benefit of digital or business transformation. CIOs must also consider digital ethics before adopting new technologies.
Harris also noted that traditional enterprise roles, including HR, Sales, Marketing, Finance, Legal, Supply Chain will change as they all become digital. Continue Reading →
Feeling the pinch in your negotiation with Gartner on your subscription contract? Do you feel comfortable in buying the various seats options being pushed your way? Are you confident that you are getting value from your contracts?
Those two deals are nothing less than tectonic shifts in the tech influencers space.
Firstly, the acquisition of CEB by Gartner is notable for three reasons:
1. It’s large. 3 billion dollars gorilla like.
If there was no overlap and divestures (CEB also sells some software which Gartner will have to offload to prevent conflicts of interests), the combined turnover Gartner and CEB turnover would be over USD3.3 billions (2.4b+951m) we’re seeing a 40% increase in revenues and the combined entity is on course towards 2,000 analysts. The next players, IDC and Forrester are around USD 300m in revenues, give or take. The last estimates I saw (a while back mind you) were that Gartner has anywhere between 40 to 60% market share. Having such a dominant player means higher prices (some say higher margins were the driver behind Gartner’s acquisition of META Group) and less bargaining power for buyers. It’s also obviously hard to ignore Gartner, so a little advice to vendors is maybe not to pick fights with them -such is their share of mind with technology buyers.
According to Outsell, Information, Media and Technology was around USD 1.6 trillion in 2016.
However, just like in the old PCM days, Gartner knows to leave scraps to second fiddles and it leaves space to disruptors -in particular on the sell-side. The IIAR Analyst Firm of the Year constantly showed that 451, Constellation, HfS and other players are definitely more than just worth looking at. And as Crawford Del Prete argues it, a second opinion can be invaluable.
2. Is Gartner plateau’ing?
With the CEB acquisition, Gartner gets access to new C-suite roles. Surely, I’d bet most CEB CIO customers also buy Gartner services and so there might be a bit of customer set duplication however CEB also serves HR, Sales, Finance and Legal functions. In fact Gartner claims it will become the leading global research and advisory company for all major functions in the entreprise.
So this is not a META Group style margins-led competitive take-out (2005) but more an expansion into new markets just like in 2009 as Gartner bought AMR, SCM World and Burton to address techies and supply chain roles.
One could infer that after years of tinkering with metrics to get more leverage, the Gartner executive team saw territory expansion as an EPS growth lever. In other words, this might signal that Gartner’s core business in IT research is plateauing? Nevertheless, with Gartner’s excellent track record in execution (IIAR members can read some tips on contract negotiation here) and international reach, expanding to other functions certainly has legs. It has already ventured in marketing and claim good growth, however Forrester still has a much better hold with this fickle audience.
The good news here for AR and influencer relations folks is the ability to leverage existing relations with Gartner to look at other audiences.
3. Does the age of algorithm prediction also apply to Gartner?
Personally, I believe the most significant impact of this acquisition is cultural. After buying and developing no less than three peer reviews offerings Gartner is moving further in the peer to peer advisory world with CEB. This is important not only because buyers value the advice from their peers more than anyone else’s but also because all of a sudden, the mighty technology priest, the feared predicator, the revered oracle becomes is demoted from his/her ivory tower. Truth ceases to be a caste monopoly and becomes the product of algorithm. Gartner famously predicted in the 2015 Symposia the age of the algorithm economy, where those become valuable IP that needs cherishing and runs the world.
As Gartner grapples with the difficult challenge of embedding more bottom-up logic in its research and offerings, it will be interesting to watch what this does to the role of the analyst: will they merely curate and socialise the result of increasingly automated insights? Looking at the profitability of Gartner’s EXP services, this might well be a wet dreams for its execs.
Since the disparition of founder Pat McGovern and his philanthropic wish to progress research on the human brain, the media group IDG he founded -and parent of analyst firm IDC– was up for sale for two years with several cliffhangers. We know little of Chain Oceanwide, however my bet would be for a divestiture of IDC at some point.
Whilst IDC predominantly addresses tech vendors, it also enjoys a great brand recognition and probably has the best geographical reach of all firms but none. Yet, its attempts to crack the end-user (buy-side) research and advisory services (RAS) business petered out, I suppose due to poor execution and a lack of investment in sales and go-to-market.
We’ve asked IDC to come and update the IIAR members -stay tuned!
I’ve been watching analysts for a long time and think this is fascinating -I was waiting for such a “JD Power of Tech” for a long time. The piece talks about Chaordix and Whale Path, and I’ve known for a while about G2 Crowd. Another well known so called Peer Review Site (PRS) is TrustRadius.
If they get it right, it will finally change the analyst business. Continue Reading →
