Current Analysis experiences layoffs

Logo - Current Analysis - v 2SageCircle has received credible intelligence that Current Analysis has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.
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  • Update: 9/3/09 5:56 am PT -Initial post. Sent request for confirmation to Current Analysis’ press office 
  • Update: 9/3/09 6:14 am PT – Initial analyst added to list
  • Update: 9/3/09 6:51 am PT – Official statement from Current Analysis posted
  • Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    Related reports and observations

    To be added

    Current Analysis  Official Statement

    From: Spinelli, Natalie
    Sent: Thursday, September 03, 2009 6:46 AM

    We did make some changes to the structure of our services and we are creating some new services, but NO services or coverage areas were eliminated. Details of the new organization, service Continue reading

    SageCircle AR Podcast for July 21, 2009

    SageCircle AR Podcast ArtworkThe AR podcast is a review of the latest news and trends in the analyst ecosystem along with tips and tricks for analyst relations professionals and analyst research consumers. SageCircle strategists Dave Eckert and Carter Lusher co-host this bi-weekly program. You can find all the SageCircle podcasts on our podcast page.

    Click here to listen to the podcast on your computer or visit the podcast page to download the MP3 file.  Click here to subscribe to the podcast within iTunes

    SCP 5: Table of contents. Numbers in parentheses refer to minutes:seconds when the article starts within the podcast.

    (00:00)  Introduction

    (00:00)  Opening

    (01:09)  News – TowerGroup layoffs

    Tom Ryan, Analyst Strategy Group

    Tom Ryan, Analyst Strategy Group

    (04:50)  Measurement – Mentions as a key metric

    (06:12)  Measurement – Question from Coffee Talk on Performance Metrics – special guest Tom Ryan of Analyst Strategy Group (ASG) answers “How can we measure success when we do not have any historical data?” See below for ASG contact information.

    (12:34)  Social media – The role of AR team handles for Twitter

    (16:34)  Change management as a key component for initiatives like social media and AR management application deployment

    (20:46)  Upcoming events

    (20:58)  End credits

    Analyst Strategy GroupAnalyst Strategy Group  www.go2asg.com  Contact: Rob Kolokousis, 408-737-2320, “rob [at] analyststrategy [dot] com”

    Our goals for the AR Community Podcast are two-fold. The first goal is to provide an additional venue for SageCircle research that complements our existing deliverables, whether free (e.g., SageCircle blog) or client only (e.g., the Online SageContent Library, the largest and premier repository of AR best practices and downloadable tools available in the industry). The second goal is to develop real-world podcasting skills so when our clients are considering their own podcasts we have the experience (and scar tissue) to help them start podcasting without having to re-invent the wheel.

    TowerGroup is rightsizing for a changed landscape

    Logo - TowerGroupThe fact that the financial services industry is changing is on the front pages of news sites and newspapers every day. Banks being closed down by regulators or acquired by other banks are shrinking the market. Other financial institutions are slamming their checkbooks shut as they try to conserve capital. This turmoil is obviously impacting technology vendors that sell software, hardware, and outsourcing to banks, insurance companies, and other financial firms. In addition to the tech vendors, this changed landscape also impacts analyst firms, especially those that focus on the financial services vertical.

    A case in point is illustrated by our post TowerGroup experiences layoffs. TowerGroup specializes in the financial services vertical market so it is not surprising the market turmoil would impact it. To get the details behind the job action, SageCircle was briefed on July 14th by Bob Egan, TowerGroup’s Global Head of Research & Chief Analyst (Twitter, bio). 

    TowerGroup invested heavily in the mid-2000’s to support the rapidly growing financial services market and the tech vendors that sell into that market. This worked out well with 30% annual growth in 2006 and 2007. Even when growth tapered off in 2008 and 2009, TowerGroup was doing “ok.” However, Egan said that the anticipation of an extended recovery and a shrunken set of companies meant that TowerGroup needed to proactively rightsize its operations to reflect the changing realities of the market rather than hang onto the existing strategy too long and be forced to make more drastic cuts later.

    The July layoffs were based on what research services were the most relevant to Continue reading

    TowerGroup experiences layoffs

    Logo - TowerGroupSageCircle has received credible intelligence that TowerGroup has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

     

  • Update: 7/9/09 9:07 am PT -Initial post. Sent request for confirmation to TowerGroup’s press office
  • Update: 7/9/09 9:28 am PT – Spoke with TowerGroup’s PR agency and they are checking with Tower about the SageCircle request
  • Update: 7/9/09 10:01 am PT – First analyst confirmation. Added to list below.
  • Update: 7/9/09 11:01 am PT – Another analyst added to list
  • Update: 7/9/09 11:32 am PT – Two analysts added to list
  • Update: 7/9/09 12:12 pm PT – One analyst added to list
  • Update: 7/9/09 1:50 pm PT – two analysts added to list
  • Update: 7/13/09 9:37 am PT – one analyst added to list
  • Update:7/13/09 9:46 am PT – report that entire European operation closed, except one analyst
  • Update: 7/13/09 2:27 pm PT – response from Tower about Euro cuts 
  • Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    Related reports and obsservations

    9/13/09 2:27 pm PT – from Bob Egan, TowerGroup head of research, via Twitter: “@carterlusher We remain very strong and committed to Europe with 3 in region analysts backed by an experienced team of global analysts.”

    9/13/09 9:54 am PT — How much of this reflects business issues with TowerGroup versus its owner, MasterCard? For instance, the last layoffs at IDC were mandated by across-the-board IDG cuts.

    9/13/09 9:46 am PT – Credible repot that entire European operation, both analysts and sales, were laid off with exception of one analyst left in London.

    TowerGroup Official Statement

    None at this time. Will be added should TowerGroup decide to issue a statement.

    Background

    For background on why some  Continue reading

    Listing of analyst firms who have laid off analysts in 2009

    This is a simple index of posts covering analyst layoffs at various firms. If you hear of job actions at analyst firms, please contact SageCircle at 503-636-1500 or “info [at] sagecircle [dot] com” with tips and insights.

    1. Aberdeen Group (January 2009)
    2. AMR Research (January 2009)
    3. Burton Group (January 2009)
    4. Current Analysis (September 2009)
    5. Enterprise Management Associates (May 2009)
    6. Forrester Research (February 2009)
    7. Gartner (January 2009)
    8. IDC (April 2009)
    9. In-Stat (February 2009)
    10. iSuppli (January 2009)
    11. The 451 Group (February 2009)
    12. TowerGroup (July 2009)
    13. Yankee Group (January 2009)

    Enterprise Management Associates (EMA) lays off analysts

    Logo - EMASageCircle has received credible intelligence, subsequently confirmed, that EMA has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

    • Update: 5/15/09 11:41 am PT – Sent request for confirmation to EMA’s press office
    • Update: 5/15/09 12:11 pm PT – Initial post and first confirmed names added name to analyst list
    • Update: 5/18.09 8:52 am PT – Official statement from EMA

    Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    Official Statement from EMA

    Received via email on Sunday, May 17, 2009:

    For several years, EMA™ has achieved strong growth, averaging 30% annually. The company has been proactive in growing the analyst team in anticipation of future demand. This has added significantly to EMA’s technical depth and overall industry outreach (particularly in advising IT organizations). However, the current economic conditions have slowed the firm’s rate of growth. As a result, EMA has taken actions to align its resources with the demand anticipated for 2009. Management came to the difficult decision to reduce the analyst staff by two positions and internal support staff by one position. These minor adjustments will ensure EMA remains financially healthy and positioned for long term growth.

    Rick Sturm, CEO and Founder

    Background

    In addition to the analysts, EMA’s marketing Continue reading

    IDC experiences layoffs – likely more than 20 analysts affected

    logo-idc.gifSageCircle has received credible intelligence that IDC has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

    • Update: 4/17/09 11:18 am PT -Initial post. Sent request for confirmation to IDC’s press office
    • Update: 4/17/09 11:22 am PT – First names added name to analyst list
    • Update: 4/17/09 11:54 am PT – Reports coming in that layoffs will be significant and include both analysts and backoffice personnel
    • Update 4/17/09 12:51 pm PT – Multiple reports that the layoffs will impact 80+ staff, of which 20+ are analysts
    • Update 4/17/09 1:26 pm PT – Name added to the analyst list
    • Update 4/17/09 2:01 pm PT – Name added to list; reports coming in that IDC is holding All-Hands meeting
    • Update 4/17/09 3:22 pm PT – Two names added to list
    • Update 4/20/09 5:03 am PT – Added IDC official statement
    • Update 4/20/09 7:04 am PT – Added name to list
    • Update 4/20/09 7:42 am PT – Added two names to list
    • Update 4/20/09 9:43 am PT – Added name
    • Update 4/20/09 11:50 am PT – Added four analyts to list
    • Update 4/20/09 12:42 pm PT – Added name
    • Update 4/20/09 1:30 pm PT — Added name
    • Update 4/20/09 4:00 pm PT — Added two names
    • Update 4/22/09 12:20 pm PT — Added three names
    • Update 4/23/09 8:19 am PT – Added one name
    • Update 4/28/09 1:57 pm PT – Added one name
    • Update 5/27/09 2:17 pm PT – Added two names

    Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    IDC Official Statement

    In an e-mail exchange with SageCircle, IDC Corporate Communications Director Michael Shirer released the following statement:
    - Due to the impact of the economic recession, IDC on April 17 reduced its U.S. staff by 82 employees, which represents 5% of IDC’s 1,650 employees worldwide.
    - 26 research analyst positions were included in the reduction in employees. This research analyst decrease represents Continue reading

    A warm compliment for Merv Adrian and an interesting comment about the Forrester layoffs

    Background:  This text originally came in as a comment to Forrester experiences analyst layoffs. Because of the last line, I did not approve the comment leaving it as a private communication to SageCircle. But I did tweet that someone had sent along a very nice compliment for Merv Adrian. That triggered this comment to the original (and not published) comment:  “Saw your tweet. Oops. sorry. meant keep IP confidential. pls reveal details. =)”  So with that permission from the author, we are now publishing his or her comment. However, rather than a comment I decided to elevate it to a full post. BTW, you can follow Merv Adrian on Twitter at www.twitter.com/merv.

    photo-merv-adrian-official-forresterIt is truly sad to say good-bye to co-workers especially during a lay off.. I will miss each person who has left. But it is quite a travesty when you lay off someone who is an icon, someone who makes a big difference in everyone’s lives, and someone who has had the company’s best interest at heart at all times. I have struggled to tell this story about my team and the more I wait, the more I regret it. I must tell. I shall share. I now reveal.So I say this with great conviction: “It is unconscionable for Forrester to lay off Mervyn T. Adrian without a proper explanation to our clients and our employees”

    Why?

    I was there when we first bought Giga. It was a scary time like now. The Internet bubble had burst. We had finished 2 rounds of layoffs. Our business was tanking. Our stock in the toilet.

    When we bought Giga, we were nervous. Our first reaction was who are all these gray hairs? We were all much younger. Why’s everyone a VP? We only had principal analysts as the highest title and there were only 2 or 3 of those. Would we get along with these old farts? They seem crotchety and nerdy. How come they all work from home? We lived in a must show up to HQ culture.

    But throughout the acquisition, this bubbly gentleman would reach out. He showed us how to work together. He showed us the value of an inquiry to clients. He showed us the how to collaborate across teams. He would reach out and mentor new analysts. He would tell it to us like Continue reading

    SageCircle Special Webinar: Impact of the Recession on the Analysts and AR – Time for Ruthless Action

    seminar.jpgThe worldwide economic downturn is impacting analyst firms that only a few months ago thought they would see slowing of their revenues, but not much more. In the last month, eight analyst firms – including Forrester and Gartner – have announced layoffs. More are surely to come.

    And it is not just the analysts who are caught up in this recession. Analyst relations (AR) programs often get caught in the downdraft of a recession experiencing budget cuts, headcount freezes or reductions, and less analyst interaction support from executives and domain experts. If AR is to avoid being the target of budget and headcount cuts is it critical to ensure that it is aligned with corporate priorities and is demonstrating positive economic contributions. While this seems obvious, too many AR programs are so caught up in reactive mode or simply doing normal day-to-day tasks that they don’t see the danger forming. As a consequence, these programs have a greater likelihood of getting cut than those AR managers and teams that proactively or preemptively move to change their focus. 

    To help AR professionals and teams take a strategic approach to dealing with the rapidly changing environment, SageCircle is announcing a new public webinar focused on the recession’s impact on the analyst ecosystem and the actions AR needs to take.

    Key Issues to be addressed in this webinar include:

    • How is the analyst ecosystem impacted by recessions?
    • Will the “Big 2″ advisory firms see their influence impacted by the recession?
    • What are the immediate steps that AR should take when analysts are laid off?
    • How will the recession cause AR to work differently and spend differently?

    In this SageCircle Webinar, our strategists – who have experienced recessions both Continue reading

    Forrester experiences analyst layoffs

    SageCircle has received credible intelligence that Forrester Research  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

    • Update – 2/9/09 12:15 pm PT – Initial post. Sent request for confirmation to Forrester’s press office
    • Update – 2/9/09 12:30 pm PT – Context
    • Update – 2/9/09 12:45 pm PT – Details: 111 staff laidoff, 15% of workforce Correction: This number is from the 2001 layoff.
    • Update – 2/9/09 1:10 pm PT – Added analyst to list (see below)
    • Update – 2/9/09 1:52 pm PT — Added analyst to list
    • Update – 2/9/09 1:47 pm PT — Added analyst to list
    • Update – 2/0/09 3:12 pm PT — Added analyst to list
    • Update – 2/9/09 3:45 pm PT — Added Forrester’s official statement
    • Update – 2/9/09 4:02 pm PT — Added two analysts to list
    • Update – 2/9/09 4:31 pm PT — added analyst to list
    • Update – 2/9/09 5:40 pm PT — added two analysts to list
    • Update – 2/9/09 5:55 am PT — Forrester files an SEC form 8-K with the official statement
    • Update – 2/10/10 6:43 am PT — a little perspective on the layoffs
    • Update – 2/10/09 8:40 am PT — Removed an analyst from the list

    On Wednesday, February 11th at 8 am PT, Forrester is having its Q4 and FY08 earnings call (see Forrester Research, Inc. Q4 and FY08 earnings call is scheduled – Acquisitions? Layoffs? Something out the ordinary?). As we mentioned in the post it would not be unusual for Forrester to announce job actions or acquisitions close to the day of the earnings call. Something else to remember that layoffs do not mean that an acquisition is not in the works. Forrester could be trimming costs in order to absorb the costs associated with an acquisition.

    Added 2/10/09 — While the layoffs feel like 100% to the individuals who were directly impacted, within the context of Forrester’s overall research team the percentage was small. In its 2008 10Q, Forrester indicated that it had 410 research related employees. So far, we have identified eight analysts and researchers or 2% of the team. While this layoffs impacts clients who value those analysts’ advice and insights and the vendors who had invested in educating those analysts, these layoffs do not signal a decrease in Forrester’s influence or viability.

    SageCircle has announced a SageCircle Special Webinar: Impact of the Recession on the Analysts and AR – Time for Ruthless Action. In this 90-minute webinar we will look at the last recession in comparison to this recession, the impact of this recession on the analyst ecosystem and what steps analyst relations (AR) programs need to take to ensure that their companies continue to work effectively with the IT and telecommunications analysts.

    Official Statement

    Sent by Karyl Levinson, Vice President, Corporate Communications

    Forrester Announces Workforce Reduction

     Cambridge, Mass., February 9, 2009 . . .

    Forrester Research, Inc. (Nasdaq: FORR) today announced a reduction in force of approximately 50 jobs, or an estimated five percent of its workforce, across various functions and geographies worldwide. This positions the company to compete better in the current economic climate. The company anticipates that it will incur pre-tax expenses of approximately $2.5 to $3 million dollars in the first quarter of 2009, related principally to cash severance and related benefits costs. The company also is evaluating associated facilities-related costs.

    “We are grateful for the contributions of Continue reading

    In-Stat experiences layoffs

    Logo - In-StatSageCircle has received credible intelligence that In-Stat (digital communications market research) initiated a job action resulting in nine analysts being laid off. We will continue to provide updates as we learn new information.

    • Update – 2/6/09 6:10 am - Initial post. Sent request for confirmation to In-Stat’s press contact
    • Update – 2/6/09 10:17 am – Official statement from In-Stat

    Official Statement from In-Stat

    Sent: Friday, February 06, 2009 10:09 AM
    Subject: RE: Official statement about In-Stat analyst layoffs

    Hi Carter,
    In response to your inquiry, here is our corporate statement :

    On Monday, January 26, 2009, Reed Business Information Continue reading

    iSuppli experiences layoffs

    Logo - iSuppliElectronics supply chain market research firm iSuppli has announced layoffs. This news was first noted on the Analyst Perspectives blog (The Analyst Layoffs Keep Rolling On) and later confirmed by SageCircle. It appears that no analysts have been laid off, though some research assistants and contractors appear to have lost their positions.

    Burton Group announces job action

    SageCircle has received from Burton Group CEO Jamie Lewis an email about a job action resulting in analyst layoffs. We will continue to provide updates as we learn new information

    • Update 1 – 1/20/09 – Posted official statement
    • Update 2 – 1/21/09 – Posted one analyst name to list
    • Update 3 – 1/22/09 – Removed Pete Lindstrom from list of analysts – he had departed ahead of layoffs

    Official Statement

    “On Monday January 19, Burton Group took actions to ensure the ongoing financial health of its business given current economic conditions. Like every business, Burton Group must ensure that it spends within its means in 2009, preserving the significant resources the company has as it prepares for long-term growth. In short, these changes were minor adjustments to accommodate market conditions. Burton Group continues to be a profitable, debt-free, and growing business.

    Specifically, the company had a reduction in force of 8 people, or 5% of its total workforce. Of these eight people, four were analysts, three were internal support staff, and one was a consultant. This reduction in Continue reading

    Kudos to CEO Emily Green for transparency about latest Yankee Group job action

    I am in complete agreement with Hill & Knowlton AR guru Dom Pannell’s post on the ARcade blog that Yankee CEO Emily Green deserves a compliment for her blog post Time for the shoemaker’s children. While the layoffs are painful, transparency can help raise the confidence of the analyst ecosystem about Yankee’s prospects.

    Yankee Group experiences new round of layoffs

    Credible reports are coming in that Yankee Group is laying off another group of analysts. We will continue to provide updates as we learn new information.

    • Update 1 – 1/15/09 8:59 am – Posted official statement from Yankee Group
    • Updated 2 – 1/15/09 9:07 am – Added two analysts to list

    Official Statement

    Sent: Thu, January 15, 2009 8:50
    Subject: Yankee Group update

    Hi Carter,

    I’ve appreciated our open dialogue over the past few months, and I wanted to update you on some company news at Yankee Group.

    Emily Green just posted a blog at Continue reading

    Role of social media in uncovering the Gartner and AMR analyst layoffs

    icon-social-media-blue.jpgThe last few days have been interesting regarding the layoffs at Gartner and AMR. Laying off workers (about 1% of analysts for Gartner so far), canceling unprofitable events (such as Spring Symposium), and so on are so typical for any company in this economic environment. In fact, more layoffs or other services cancelations would not be atypical. 

    However, what makes this situation more interesting is the role social media played in bringing the layoffs to the attention of stakeholders in the analyst ecosystem. In the past the analyst firms were able to get away with keeping layoffs under the radar screen because any one client, end user or vendor, would only discover “missing” analysts that they personally interacted with on a regular basis. This process of discovering missing analysts would also occur over days or weeks because few clients have frequent contacts with multiple analysts. When layoffs occurred under the radar nobody got the big picture about all the departures and put the pieces together.

    Well, that approach ended on Friday. SageCircle became the hub for information about reports of layoffs and then fed that back to the AR community via Twitter, Facebook and our blog. Our raising the issue then got us more data points via Twitter and email. Very quickly we were able to ascertain that the departures were not just the usual turnover in the employee base, but job actions by AMR and Gartner affecting a number of analysts.

    Certainly, Twitter and other social media have been used in other breaking news instances, including natural disasters or terrorist related. However, most members in the analyst ecosystem have been laggards when it comes to adopting social media. This might be the first case of Twitter, Facebook and an AR blog being used to Continue reading

    AMR retrenches to focus on core, lays off reported 10%

    logo-amr-research.gifMore information to follow. Check back frequently for updates.

    • Update 1 – 1/9/09 6:40 am PT -Initial list of analysts
    • Update 2 – 1/9/09 7:19 am PT – Added name to list
    • Update 3 – 1/9/09 8:24 am PT – Initial analysis added
    • Update 4 – 1/9/09 11:19 am PT – Statement from AMR CEO added
    • Update 5 – 1/12/08 5:36 am PT – Added name to list
    • Update 6 – 1/12/08 2:24 pm PT – Added three names to list

    Statement from Tony Friscia, CEO, AMR Research

    Via email — “It is true that we eliminated some positions (about 10%) across each department in the company due to the economy. While this includes several research positions, we are not eliminating any coverage areas. This also does not impact client services. We are eager to see the economy turn around soon.”

    Analysis

    This appears to be a case of a firm retrenching to its core coverage and market. In late 2007 AMR started expanding on its enterprise applications and supply chain base to address more horizontal topics (e.g.,see Interview with AMR CEO Tony Friscia and VP Jonathan Yarmis on AMR’s new “emerging and disruptive technologies” service). Expansions like this require not just analyst horsepower, but also the ability to get the sales force to understand the new selling propositions and prospect base for the new research. This retrenchment could be an acknowledgement that this type of expansion in this economic client is not something that AMR could afford.

    One interesting data point is the Continue reading

    Gartner layoffs include analysts – Cancels Spring Symposium

    • logo-gartner.gifUpdate 1 – 1/9/09 6:52 am PT – Basic info
    • Update 2 – 1/9/09 8:02 am PT – In response to SageCircle request, Gartner PR declines to expand official statement.
    • Update 3 – 1/9/09 8:37 am PT – Initial analysis
    • Update 4 – 1/9/09 12:17 pm PT – Spring Symposium cancelation
    • Update 5 – 1/9/09 12:52 pm PT – three analysts added to lay off list
    • Update 6 – 1/10/09 8:02 am PT – two analysts added to list
    • Update 7 – 1/14/09 8:25 pm PT – one analyst added to list
    • Update 8 – 1/15/09 5:47 am PT – Web Innovation Summit canceled

    Analysis

    Unlike the current AMR layoffs and the August Yankee Group restructuring, the Gartner layoffs appear to be minor with little impact on Gartner’s ability to conduct research. While we do no have exact details this move appears to aimed mainly at triming costs, which is common in recessions.

    If it is true that no analysts or sales reps have been laid off – which is implied in the official statement – then analyst relations (AR) professionals could inform their executives that this is a non-event when it comes to Gartner’s influence over technology purchases.  Reports are coming in that Gartner analysts have been laid off (see list below). Depending on the eventual number and whether any particular research coverage is impacted, then might or might not signal a diminishment of influence on vendor sales deals.

    The Spring Symposium cancelation is consistent with recent Gartner CEO Gene Hall decisions to sell off certain events businesses or shut down underperforming theme conferences in order to invest in new theme conferences. However, a Gartner Symposium is not an aging theme conference for a faded research topic. Enterprise travel restrictions (eliminating IT manager ticket sales) and vendors canceling sponsorships must have made the expense of keeping it going worst than the marketing hit Gartner is going to take. 

    Spring Symposium canceled

    SageCircle has received credible reports from many vendors that they are hearing from analysts that at least U.S. Spring Symposium in Las Vegas has been canceled. Mandalay Bay Hotel, conference site, is referring all calls to Gartner. Update: Gartner has confirmed to SageCircle the cancelation of Spring Symposium

    Web Innovation Summit canceled

     

    SageCircle has received credible reports from vendors that they are hearing that the Web Innovation Summit has been canceled.

    Original Report

    Source: Reuters SAYS AFFECTED POSITIONS SPREAD ACROSS VARIOUS FUNCTIONS AND GEOGRAPHIES, AND consisted primarily of non-quota bearing and non-client facing functions.  SAYS AS A RESULT WILL INCUR PRE-TAX EXPENSES OF APPROX $8.5 MILLION IN Q4 .   2008 SAYS DESPITE THESE EXPENSES, IT EXPECTS TO Continue reading

    Are the vendor-centric analyst firms heading for tough times? Will end-user centric analyst firms do fine?

    Forrester and Gartner both posted double digit gains in Q2FY08 while IDC and Yankee Group are laying off analysts. What’s up? 

    One explanation might be the difference in client base composition of the two types of analyst firms. Forrester and especially Gartner get most of their revenues from end user clients and much less from vendors. For example, we estimate that over 70% of Gartner’s revenues come from IT managers in corporations. Contrast that with IDC where we estimate that it gets over 85% of its revenue from technology vendors. This difference is very relevant because enterprise end users don’t dramatically decrease their spending on analyst contracts during an economic downturn, they are pretty steady. Often they are using analyst information to validate and justify IT expenses.  Vendors, on the other hand, dramatically change their spending on analyst contracts during economic downturns. This is because most analyst services are paid by marketing budgets, which are usually the first to be cut as an economic recession approaches.

    This was the pattern during the last major tech economic downturn, 2000-2003, during the post-Y2K period and concurrent ecommerce Dot Bomb. While Gartner’s vendor business cratered during this period, its end-user business was reasonably Continue reading

    Yankee Group reorganizes and lays off approximately 10% of analysts

    SageCircle has learned that Yankee Group has initiated a round of analyst layoffs. At this time the exact number of staff and coverage is not known, but we have heard that 10% might be the size of the action. AR teams need to hope for the best for their favorite Yankee analysts, but plan for the worst.

    Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    The stark reality is that an analyst firm will not admit that they have pushed critical intellectual property out the door. Because none of the major analyst firms – including Yankee – have knowledge management Continue reading

    IDC lays off eight analysts and 15 additional staff

    logo-idc.gifTips started coming into SageCircle last night. Over the last twelve hours we have identified five six of the eight analysts. Out of respect to the analysts we will not publish the names.*

    In an e-mail exchange with SageCircle, IDC Corporate Communications Director Michael Shirer released the following statement:

    • On May 20, IDC reduced its U.S. headcount by 23 — this represents 1% of IDC’s 1,680 employees worldwide.
    • Most of the staff reductions came from Continue reading

    What to do when analyst firms lays off analysts

    SageCircle has learned that IDC has initiated a round of analyst layoffs. At this time the exact number of staff and coverage is not known. AR teams need to hope for the best for their favorite IDC analysts, but plan for the worst.

    Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

    The stark reality is that an analyst firm will not admit that Continue reading

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