Getting the Most From Industry Analysts
Former analyst and software/outsourcing negotiator extraordinaire, Vinnie Merchandani, recently penned a short little number over on Deal Architect in which he suggests that industry analysts may be "too conservative for their own good" when it comes to covering vendors. As an example, he mentions AMR’s coverage of SAP’s recent quarterly results. Vinnie suggests that there’s not much in it for users: "I asked what a CIO or another buyer reader could take away from that piece. Really not much -- it's aimed at investors and vendors. No tough questions on whether SAP's planned maintenance will stick? Their executive turnover? Their position on SaaS and clouds? Forget internal IT -- what about spend on R&D in a recession?"
What's the upshot? Bruce Richardson, who wrote the piece, probably knows more about SAP than any other analyst or individual on the planet. But he and his firm are not going to spill the beans in writing because SAP represents a large revenue stream and as important, a giant time-suck should AMR go too negative in writing (trust me, I've been on the receiving end of vendor furor myself). So we should take Vinnie's ultimate advice to heart: "Ignore what analysts say in print. Schedule a call. Or even better schedule a visit and get them to talk without attribution." That's how you'll get the real scoop on the vendors they cover and know.
- Jason Busch
What's the upshot? Bruce Richardson, who wrote the piece, probably knows more about SAP than any other analyst or individual on the planet. But he and his firm are not going to spill the beans in writing because SAP represents a large revenue stream and as important, a giant time-suck should AMR go too negative in writing (trust me, I've been on the receiving end of vendor furor myself). So we should take Vinnie's ultimate advice to heart: "Ignore what analysts say in print. Schedule a call. Or even better schedule a visit and get them to talk without attribution." That's how you'll get the real scoop on the vendors they cover and know.
- Jason Busch
Bloggers theoretically face the same constraints, but have so far managed to resist this pressure. It will be interesting to see whether they can continue to do so.
http://www.forrester.com/Research/Document/0,7211,43689,00.html
Sure Oracle wanted to argue every line with us, but at the end of the process they respected my right to express my view, even if they didnt agree with it all.
Where you do have a point is in questioning the value of a document if it is not clear for whom it was written. Our output is targeted at specific roles (e.g. sourcing and vendor management) so we ensure we know before we start if it is aimed at potential investors, competitors or buyers.
So talk directly to us, by all means, but please keep reading our stuff!
Thanks for chiming in. I think that you are an exception given your dual role on technology negotiations and covering this sector. Moreover, I think some firms are more careful with what they write (vs. what they say) than others. But having been on the analyst side of the fence a long time ago, you've got to tacitly acknowledge that when an Oracle or SAP that spends $1 million+ with an analyst firm starts making threats, that you would be more inclined to be careful with words than not (at least in print). You can always twist the knife in -- and sometimes they deserve it !!! -- on the inquiry calls. I have been told so much that this happens by some still in the market ... ;-)
Hope you're well, BTW. Given the fact that the pound and dollar are nearing parity (I say God save the queen, but save the greenback first), I might get over to your country for some R&R in the next month or so. Would be great to connect.
I recall you ran numbers as an undergrad, that's not sitting on the industry analyst side of the fence.....
truth be damed
First real job ... analyst at NCRI (northeast consulting). Consulted on network and systems management, enterprise software. Covered web site management tools and related initially as an industry analyst (wrote monthly on vendors in Internet Week). 2-3 vendor briefings weekly, and served vendor clients in an analyst capacity. Then from a writing and coverage standpoint, migrated more to the role of a columnist which eventually got me into talking about trade, sourcing, reverse auctions, etc. And that's how I landed at FMKT.