Acquisitions continue to remake the analyst landscape – Looking ahead to 2010

icon-crystal-ball.jpgThis post is one in a series where SageCircle pulls out the crystal ball and looks ahead to what happens in the analyst ecosystem in 2010. See below for links to all posts in this series.

It does not take a magical crystal ball to predict that there will be acquisitions in the analyst market. Acquisitions have always been a business tool of analyst firms. However, there are some potentially interesting developments on the acquisition front for 2010 and beyond.

Roll ups to take on Gartner and Forrester – One of the ways that Gartner was able to achieve its market dominance was 60+ acquisitions in the 1990s under the leadership of then CEO Manny Fernandez.  Since then there has been only one serious attempt to use a roll up strategy to develop a competitor to Gartner and Forrester. That was by Monitor Clipper Partners in 2004, who attempted to buy META Group to combine with the earlier acquisition of Yankee Group to form the core of a new broad-based major analyst firm. This plan was derailed by Gartner CEO Gene Hall’s smart and strategic grab of META. In stark contrast to the last ten years, 2010 could see three firms use a roll up strategy: Corporate Executive Board, IDC (for Insights units) and Ovum-Datamonitor.

Mid-sized firms get gobbled up – As Gartner’s acquisition of AMR Research demonstrates, being a mid-sized firm with a price tag in the tens of millions dollars does not deter determined acquirers. There are a number of potential acquiring firms with the financial resources to buy a mid-sized firm. One firm likely being wooed by potential acquirers is the Burton Group, which has a solid reputation, desirable research coverage, a sales force, and a client base that includes enterprises and government agencies.

Forrester continues adding resources for marketing professionals – Forrester continued its push deeper into research and services relevant to marketing professionals with its recent acquisition of Strategic Oxygen. In 2010, Forrester is likely to continue adding assets for its Marketing and Strategy Professionals Client Group. While this strategy is certainly reasonable because it helps Forrester stay out of the path of Gartner, it risks diluting its Continue reading

Gartner surprised by new competitors that steal enterprise clients – Looking ahead to 2010

icon-crystal-ball.jpgThis post is one in a series where SageCircle pulls out the crystal ball and looks ahead to what happens in the analyst ecosystem in 2010. See below for links to all posts in this series.

 Gartner is the dominant player in the analyst market with more than a 40% market share according to information market research firm Outsell, Inc. When it comes to the enterprise technology product and services buyer market (typically IT managers), Gartner extends this dominance to approximately 70% to 75% according to SageCircle estimates. If Gartner continues to execute as it has the last four years it will see its market share grow, even as the total market grows as well.

Gartner has achieved this dominance through both hard work and dumb luck. Hard work as represented by making more than 70 acquisitions since 1994, doubling the sales force since 2004 to nearly 1,000 representatives, and creating mindshare with recurring research deliverables like the Magic Quadrant, Hype Cycle, and Gartner Symposium. The dumb luck comes in the form of competitors that focus on vendors rather than end users, fail to build sales and marketing functions, and/or are complacent to the point of being Gartner’s implicit junior partner even though they have the resources to invest in more effective competition.

While there are no signs that Gartner is going to get lazy or stupid next year, 2010 might see its luck run out when it comes to ineffectual or complacent competition. SageCircle sees firms that bring attitude, business attributes, and wiliness to invest to the game unlike others in the past decade. Some examples include:

  • Altimeter Group – While still tiny, with only four analyst/consultants, Altimeter Group has tremendous enterprise visibility and mindshare due to its principals’ exquisite exploitation of social media, conventional speaking opportunities, press quotes, and client contacts from their Forrester tenures. This market awareness should prove to be a significant lead generator that other more established analyst boutiques can only envy. It has made an important investment by starting to build a sales organization. Its current Achilles’ heel is that it is perceived as mostly a Continue reading

SageCircle AR Podcast for December 15, 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.

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

SCP 15: Table of contents. Numbers in parentheses refer to minutes:seconds when the article starts within the podcast.

[00:00]  Opening

[01:06]  News – Gartner acquires AMR Research

[09:10]  How likely is it that Gartner will retain AMR analysts and sales representatives

[14:37]  Interview with Datamonitor-Ovum Research Fellow Jonathan Yarmis about his role

[21:06]  How the new Datamonitor-Ovum will encourage collaboration between Continue reading

Ovum ups the ante in campaign to recruit AMR analysts and sales representatives

Tip o’ the hat to the tipsters who sent in information about this Ovum news

Updated 12/16/09 1:32 pm PT – Added photo of truck outside Gartner’s HQ

Here is the Ovum truck making the rounds around Gartner main offices on Top Gallant Road in Stamford, CT (click on the picture to enlarge). Carter’s office use to be on the second floor nearest Top Gallant Road. Carter says that this truck would be quite visible from any of the window offices.

Please read the comments below. A Guerilla Billboards staffer mentions that a member of Gartner’s legal team came out and told the driver to get lost. Interesting.

As SageCircle reported in Special offers for AMR Research’s clients, sales professionals and analysts Ovum is one of the firms that is making a play for AMR’s sales and analyst staff. This is a common tactic by competing firms immediately after the announcement of a sizeable acquisition. However, offers like these do not necessarily result in the pickup of key staff because there is little effort put into the campaign. Usually there is just an announcement on the poaching firms’ websites and maybe a few phone calls to staff at the targeted firm.

Ovum has demonstrated that it is willing to increase the stakes by actually investing in getting the attention of the staff at the targeted firm. SageCircle has received reports about the rolling billboard that Ovum put on the streets of Boston to circle the Gartner and AMR Research offices (see picture). While this technique is likely a modest expense it does demonstrate that Ovum is serious about expanding its presence in the US market where it has a relatively small presence. In addition, it is a nifty publicity stunt sure to get some notice.

This development could work to the advantage of enterprises and vendors looking to wrap up contracts before Continue reading

Special offers for AMR Research’s clients, sales professionals and analysts

Not surprisingly, the acquisition of AMR Research by Gartner is inspiring other analyst firms to launch campaigns to capture AMR clients, sales team members, and even analysts. 

Two firms that have already announced client switch campaigns include Ovum (see here) and Ventana Research (click here). For research consumers who are looking for market and product/services insights and advice, rather than access to a firm for influencing purposes, this could be an opportunity to purchase access to analysts at a very competitive rate. At a minimum, enterprises and vendors with AMR contracts coming up for renewal should talk to Ovum and Ventana, if these firms have research relevant to you.

Ovum is also interested in talking with AMR analysts and sales representatives. For more information, please contact Rosemary Masterson (email).

Any analyst firm with special deals for AMR or Gartner clients, sales representatives, or analysts should notify SageCircle at Continue reading

SageCircle AR Podcast for December 1, 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.

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

SCP 14: Table of contents. Numbers in parentheses refer to minutes:seconds when the article starts within the podcast.

[00:00]  Opening

[01:06]  News – hiring up in analyst ecosystem

[02:54]  Interview with Datamonitor-Ovum Research Fellow Jonathan Yarmis on the new strategy for Datamonitor-Ovum

[12:22]  Analysis by SageCircle of the new Datamonitor-Ovum strategy

[22:43]  Upcoming Continue reading

Panelists at the Ovum-Datamonitor Launch Event

From left to right,

  • Jonathan Yarmis, Research Fellow, Datamonitor-Ovum
  • Gideon Gartner, CEO-founder, Gartner Group and Giga Information Systems
  • Carter Lusher, Strategist, SageCircle

The panel was on the future of the analyst industry. It was an honor for Carter to be included on such an august panel. The event was the formal launch of the new Datamonitor-Ovum.

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