The SageNote Forward-Looking Analysis (FLA) Report from August 26, 2024, examines the divergent Q2 2024 financial results of Gartner and Forrester, two leading IT research and advisory firms, and their implications for vendor analyst relations (AR) teams and the tech industry.
Gartner’s Q2 2024 results demonstrate ongoing growth in the enterprise IT advisory market, with increased Global Technology Sales (GTS) contract value and a recovering tech vendor segment, despite a decrease in Research Non-subscription revenue and a slight reduction in quota-bearing headcount (QBH). Conversely, Forrester’s results show a sixth consecutive quarter of decline, with a decrease in research contract value, a drop in client companies, and flat retention rates from low levels, alongside a significant reduction in sales headcount and event attendance.
The report suggests that Gartner’s influence on enterprise IT buying decisions is robust and potentially expanding, while Forrester’s influence, especially in tech purchasing decisions, may be diminishing. Both firms face challenges in the tech vendor segment, but Gartner shows signs of recovery.
The analysis considers economic uncertainty, tech vendor market dynamics, sales strategies, enterprise IT spending patterns, and competitive positioning as key factors affecting the firms’ performance. It predicts continued growth for Gartner in the short term, with potential strategic shifts for Forrester. In the medium term, Gartner may increase its QBH focused on enterprise clients, while Forrester could face pressure to restructure. Long-term, Gartner’s influence on enterprise IT strategy and spending is expected to grow, with Forrester possibly repositioning in niche areas and both firms evolving their service offerings.
For tech vendors, the report recommends prioritizing Gartner-focused AR activities, critically evaluating Forrester engagements, diversifying AR strategies, collaborating with sales teams, monitoring firms’ coverage areas, and potentially reallocating resources if Forrester’s influence declines.
The report also explores alternative future scenarios, including Gartner’s continued dominance, Forrester’s resurgence, the entry of a disruptive new entrant, market fragmentation, industry consolidation through acquisition, and the democratization of analysis. It advises AR professionals to maintain flexible strategies, diversify analyst relationships, monitor emerging players and technologies, develop internal capabilities, and regularly reassess the ROI of analyst firm engagements.
In conclusion, the report underscores the importance of adaptable AR strategies in the face of a changing analyst firm landscape.
The report is available to SageCircle clients.
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