The industry analyst is dead – good

by admin on May 26, 2007

in General

Brian Sommer’s devastating indictment of the analyst community will likely raise the hackles of a few people I know. It’s been a long time a-coming. I’m with Brian that it’s about time analysts delivered value. The landscape has changed and there is a much richer set of resources from which to poll advice.

So it was refreshing to hear from the CEO of a mid-range company that has decided it doesn’t need Gartner. It asked to be excused from participating in a Magic Quadrant analysis. Gartner’s response?

We’ll decide whether your company is part of the Magic Quadrant.

That’s interesting. If the company concerned does not wish to participate and therefore pass over the information Gartner seeks, then how can Gartner claim to have conducted an independent review of the market upon which it reports? What would happen if all companies declined?

I don’t know any single buying decision that hinged on the words of an industry analyst’s report. As a way of sanity checking the market, maybe. That means those $100K+ subscription fee line items in the marketing budget plus all the trips these folk get ferried around to are…a total waste of money. And buyers pay for it through inflated software prices.

I repeat – the best ways to understand software usage patterns is by speaking to users, discover their needs and then let the developers loose. Developers still have an important role in innovation. Where most software companies fail is in their attention to post implementation relationships. Some are trying and it is here that analysts could re-invent themselves as community facilitators. But they will need to be much more business focused than they are today. And demonstrably independent. If they cannot, then they are merely marketers and should be described as such.

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I think you are correct. Describing certain groups as analysts will become more difficult as the enterprise apps players attempt to reach the SMB market - of which they have no clue.

As to T&Cs - I would not agree to such terms. It either works or not and I want the vendor to take responsibility. If not then I go elsewhere. As an aside - with saas apps, I casn vote with my wallet - every month if I need to.

You're spot on with post-implementation relationships being out of wack. Take the support forums of most products you can buy - more often than not you'll see "peer-support" or "users supporting users".

It's one aspect - user support - where organisations tend to leave users high & dry.

As an aside - something that has been burning at the back of my mind for the past year or so - have you noticed the text in the average license agreement over the past few years. In essence licenses say: 'Thanks for buying the software, please note however that we have no responsibility in the case that the software: Doesn't work, looses all your information, breaks your machine, exposes your machine to security issues, abuse or raises your blood pressure to such an extent that you suffer a heart attack."

Now I understand that this is a litigious (you might want to spell-check that for me ;)) world and people sue at the drop of a hat - but it's still... has the world reached such a state that integrity & professionalism has been burried under Mount Etna?

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