Posted on January 16, 2009 by SageCircle
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.
Filed under: Analyst industry, News | Tagged: analyst relations, analysts layoffs, AR, CEO, Dom Pannell, Emily Green, layoffs, Yankee, Yankee Group | Comments Off on Kudos to CEO Emily Green for transparency about latest Yankee Group job action
Posted on August 27, 2008 by SageCircle
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
Filed under: Analyst industry, News | Tagged: analyst relations, analysts, AR, Coffee Talk, Forrester, Gartner, layoffs, SageCircle Coffee Talk, Yankee, Yankee Group | 8 Comments »