Technology

Gartner and Meta on the analyst`s couch

The rival research giants could be getting together because they foresee their market shrinking.

01 February 2005

The pending purchase by research group Gartner of its smaller rival Meta Group for $162 million offers a rare glimpse into the IT analysis market - one that is difficult to measure as these experts spend all their time analysing other markets. On the face of it, the merger makes sense. The companies share a common customer base, and both offer fairly similar services. Why Gartner is paying a premium for Meta is up for conjecture. But there are clues in the way the IT wind is blowing.

One reason could be a conviction that the market the two compete in is shrinking and a perceived need to do the deal quickly and smoothly. As IT becomes more of a commodity, and systems and processes are standardised, so too become the problems and issues faced by CIOs and the like. Furthermore, a new generation of IT executive is appearing, one weaned on a diet of acronyms and "new" technologies that confounded many of there predecessors.

A pointer to this reasoning comes from a Gartner research note titled Telcos Should Take a Bottom-up Approach to IT Services. While the note gives ad-vice on how telecommunications companies should approach the IT services market, it also offers a glimpse of the issues facing consulting firms.

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