• Recent Posts: Influencer Relations

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    Vendors’ five key thoughts about analyst firms

    Vendors’ five key thoughts about analyst firms

    Five things stand out from vendors’ responses to a survey we conducted after our Analyst Relations roundtable at the English Speaking Union. Analysts (including analysts who call themselves consultants or advisors) are often thought to have bias, especially if most of their revenue comes from vendors. Sometimes the effort put into staying informed makes analysts seem very process-driven but less […]

    Join us for the Forum in San José on November 17

    Join us for the Forum in San José on November 17

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    Take the 2016/17 Analyst Value Survey

    Take the 2016/17 Analyst Value Survey

    The Analyst Value Survey is open! Each year several hundred users of analyst research tell us which analyst firms they use, and which are most valuable. In exchange, they get access to our results webinar, where they discover which firms are delivering the most value in key market segments. You can take part too. Go to AnalystValueSurvey.com and click on […]

    Guess Who’s Looking for Top Talent in Analyst Relations?

    Guess Who’s Looking for Top Talent in Analyst Relations?

    Looking for a new direction in your Analyst Relations career? October is a time when new opportunities pop up in the field. From IBM to Google, we gathered the top US Analyst Relations firms with vacancies needing to be filled. If you’d like to learn more about the opportunity and to schedule an interview, contact these firms directly. However, if […]

So, how much money did the US Federal Government spend with analysts firms?

Well, it was a pretty fair amount.   And the lion’s share went to Gartner of course. Gartner got at least $121,000,000 in the last four years. See below for a table of spending by firm.

logo-usa-spending-gov The information came from www.USAspending.gov, which is an interesting resource for market research.  BTW, the numbers below should be considered the minimum amount the firms received in US Federal contracts because not all agencies are required to provide data. In addition, there are a few major agencies that have not submitted their 2008 numbers yet so the contract numbers could go up for all the firms in 2008. Also, there might be purchases (e.g., tickets to analyst conferences bought with credit cards and expensed) that are not associated with the firm’s DUN number. Besides the summary numbers we list below, you can also drill down to determine spending by agency and some contract details.

This is not just a fun exercise in trivia. The amount of contracts a firm has with a client can be used as an indicator for the amount of influence with that client. Using the 2007 contract amount and assuming the GAO drives a hard bargain so each Advisory seat costs $11k, Gartner could have approximately 2,700 IT manager clients inside the Federal government it is advising on technology purchasing issues. As a consequence, Gartner could be influencing tens of billions in IT spending because it has the ear of thousands of decision makers.

SageCircle Technique

  • AR professionals at companies that target the US Federal Government should incorporate this data into analyst list management
  • AR can conduct inquiries with analysts to ask about the volume and nature of inquiries they conduct with relevant Federal agencies
  • AR should communicate insights about relevant analyst Federal contracts to their sales colleagues and how to utilize these insights

Bottom Line: AR managers whose companies sell to the US Federal Government should use data from www.USAspending.gov as a data point for their analyst list ranking methodologies. Of course, analyst firms can influence the US Federal spending in ways not related to client status. However, contract status is an easily acquired, hard number that can provide valuable insights.

Gartner

  • 2008 – $23,558,453
  • 2007 – $30,680,378
  • 2006 – $34,544,716
  • 2005 – $32,267,738

Forrester

  • 2008 – $1,406,028
  • 2007 – $1,463,435
  • 2006 – $1,247,101
  • 2005 – $1,605,754

Burton Group

  • 2008 – $793,372
  • 2007 – $561,472
  • 2006 – $702,468
  • 2005 – $577,554

IDC

  • 2008 – $197,575
  • 2007 – $124,850
  • 2006 – $  96,000
  • 2005 – $187,990

Here is a random sample of other firms, all of which received zero dollars in federal contracts: Aberdeen, AMR Research, Redmonk, Yankee Group

4 Responses

  1. Very useful infomation. Wonder what % this represents of the overall analyst market? Think you might have dropped a “zero” in your original number in first para.

  2. Hi Bob, Thanks for the comment.

    Relatively tiny. the 2008 aggregate purchases represpent about 2.4% of Gartner’s revenues. When you start getting into individual agencies then the percentages drop even lower.

    Not that 2.4% is anything to sneeze about.

  3. great insight. Is there any breakdown between syndicated research and consulting purchases?

  4. Great stuff, and very helpful with a current client I am dealing with.

    Not to nit pick because the bigger point still holds, but I get a bit different figures when I look up each analyst. For example, for Gartner last year I get nearly $9M higher ($32,047,517). Not sure why the discrepancy.

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