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Open Sources | Rodrigues & Urlocker » Other Underreported Stories: Analyst Integrity?

December 31, 2007 | Comments: (0)

Other Underreported Stories: Analyst Integrity?

My previous posting was about InfoWorld's underreported stories for the year. As I mentioned, we had quite an interesting email thread about other stories that were suggested. Items ranged from Microsoft's end-run on open standards, Microsoft's gradual but steady entry into open source, programming language trends, convergence of Web 2.0 with Enterprise, Software as a Service (though I think that one may have been overreported!), portable devices ranging from the iPhone to the Nokia N800 and others.

But the topic that got the most discussion and the most emotion going was about the role of IT industry analyst firms. As one blogger put it:

The persistent rumor (although nobody will go on record for it in fear of retaliation)... that the major research firms exhcange better-than deserved positions for cash in the form of subscriptions to their expensive services.

There was a pretty interesting discussion with views on both sides. Some felt that the rumors have been so persistent that, well, where there's smoke there's fire. Others saying they have heard from someone who heard from someone that once they started paying their exposure improved. Others saying it's just like the rumors that magazine advertisers get better reviews, an accusation that has been levied to Ziff-Davis publications, as well as photography and stereo equipment magazines for years.

My view is that while there are some low-end firms that engage in questionable research, the big firms have a very distinct separation of sales and editorial, just as reputable magazines do. While some might wish that a good analyst report could be "bought" it just doesn't work that way. And in 20 years, I've never had an analyst or sales rep from top firms like Gartner, DataQuest, Forrester, Meta, Ovum, IDC, The451 Group, or others imply anything to the contrary. But that's just my experience.

In the end, the editors felt the story didn't really fit the bill; it went beyond the scope of an end-of-year story. For those interested, there was a similar story published at InformationWeek about a year ago. Maybe its time for an update.

What do others think? Has anyone felt that analyst firms have crossed the line by selling positive coverage? Do you think analyst firms are credible? Do you use analyst reports or services to help you make your IT decisions? Is there a story here you want to read in InfoWorld? Let me know your thoughts.

And also, Happy New Year!

Posted by Zack Urlocker on December 31, 2007 10:26 AM


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Hi Zack, nicely provocative headline. Of course, the rumors, really urban legends, about pay-for-position or pay-to-play have been around forever. In general, these rumors are just that. The easiest way to dismiss them? Common sense. Why would an analyst firm put at risk the vast majority of its revenues, which for Gartner and Forrester come from end users, to get a few incremental dollars out of some poor vendor by selling their integrity? Well, common sense tells me that while there might be a desperate firm employee or so over the years that might try this gambit to make their sales quotas, the firms' executives and analysts would never be so stupid.

The real issue is one of perception caused by analysts that are not sensitive to vendors' feelings. I wrote SageNote AR114 “What You Heard versus What They Said" to address how analysts accidently give the impression that a timely subscription contract or analyst consulting day could solve the vendor' position problem in research. If you or your readers would like a copy of AR114, please drop us a line at info [at] sagecircle dot com.

BTW, I have a longer post on the SageCircle blog (www.sagecircle.wordpress.com) that addresses several issues on this topic.

Posted by: Carter Lusher at January 2, 2008 07:44 AM

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