More on Gartner/META
By John Clingan-Oracle on Jan 07, 2005
I got the OK from a Clingan Zone reader to post the following item, which is related to an earlier Clingan Zone entry. Hey, this kinda feels like The Drudge Report by getting the scoop, minus the notoriety, less 1.5M daily web hits, minus the ad revenue and after the actual press release (me-thinks).
In Who Analyzes the Analysts the question is asked, and now we know. I wonder just how far this recursive approach goes before we over-run the stack?
All humor aside (or humour for the "real" english), this is an excellent read:
ITRG Predicts: “There is a .9 Probability that the Gartner-META acquisition is a pre-emptive strike to bolster its dominant position.”
London – We believe that Gartner’s META acquisition is a pre-emptive strike precipitated by the recent Forrester Giga acquisition and the ongoing consolidation of the research industry. The acquisition significantly reduces competition in the high end research market, Forrester now being the only viable provider of “qualitative” research and IDC the only quantitative “numbers” provider. The damage to Gartner of one of these two acquiring/merging with META far outweighs the benefit of Gartner acquiring the company itself.
ITRG expects the acquisition to have a near-term negative revenue impact as clients pare down their spending on a combined Gartner/META service offering – and divert spending to Forrester, IDC or others to obtain the critical “second opinion”. We believe the benefit of operating efficiencies from reductions in overlapping research, sales and administrative groups will be overshadowed by the revenue decline.
What does the acquisition mean to clients at large? Fewer competitors and less choice eliminates alternative viewpoints and ultimately hurts clients.
“In light of this acquisition, companies have to be even more careful acting on advice from Gartner,” says Frank Koelsch, EVP Corporate Strategy and Research of ITRG. “This is especially true for mid-sized, and large mid-sized, enterprises. Gartner’s research is oriented to the needs of tier 1 companies. Acting on it can actually hurt mid-sized enterprises,” says Koelsch.
ITRG predicts … No net near term benefit to Gartner stemming from the acquisition and a long term reduction in competition which will further erode the diversity and value of research available to large enterprises.
ITRG (www.infotech.com) is a research and professional services firm focused on providing premium research and advice geared to the specific needs of IT Professionals of mid-sized organizations.