This blog is written in response to Gideon Gartner's blog "Advisory Industry, a future redesign: the “Payment” Model". As I called out in two blogs in 2007 Gartner is now a small fish in a big pond as it attempts to compete in the larger management consulting market.

As such neither it nor Forrester or IDC can achieve organic growth and catapult themselves into the 10’s of billions of dollars of revenues (and higher profit margins) that the wider industry commands. For that reason I completely agree with Gideon that the required changes to existing pricing models in the ICT analyst advisory market are unrealistic in today’s environment. However, the “king of change” as Gideon called it in one response is well within reach of the firms that stand capable of changing and re-educating the industry.

I believe that the future of the large ICT analyst houses is inextricably tied to the innumerable boutiques that exist in every market that is geographically and economically relevant to the ICT industry. To maintain relevance as the global benchmarks, Gartner and Forrester must follow the lead of major banks and airlines and address a different business model that will include the addition of lower cost subsidiaries that offer either changes in service, pricing and delivery structures to companies that represent a larger and more diverse demogrpahics. Let me elaborate.

The Art of Corporate and Industry Reinvention

In the month when we launch our industry trends for the year ahead (check the website next week) I thought it appropriate to take a look at our little part of the industry and one possible sceanrio for what we may feasibly look like in the next 10-years.

Back in June I wrote about Gartner's exit from the Australian ICT consulting environment. To save you re-reading the blog, the basic premise was that demand (what the customer was willing to pay) was not the reason. It was merely an inadequate depth of financial relationship with its Australian customers that alluded the Connecticut-based advisory firm. Of course the local dichotomy to that was the perceived lack of relationship heaped upon those same Australian clients.

For the last few years I have always held that Gartner isn't the real competition to the likes of IDC, Forrester, and Ovum ? and yes even us and the other 15 tech research companies in Australia (did I get the numbers right Len?). Now that's not to say that we don't pursue the same client-base with similar product and service. What I have meant is simply that Gartner has changed direction. They have entered a new pond. But it hasn't been all on their own terms...

While it was never our intention to strike out along the competitive path against the likes of the "almost" billion-dollar companies such as Gartner, perception in the local market was confirmed early thanks to an article that appeared in the Australian Financial Review last year. I won't repeat the headline lest it re-offend the wrong people.