Monday, January 24, 2011

Industry Analysis Transparency

@jyarmis asks Should analyst organisations who advise clients on technology purchases be transparent about who pays for their research?

Analysts may trouser cash from vendors for various services - commissioned work, consultancy, membership, sponsorship, webinars, white papers. But we should also be aware of the many non-financial ways in which vendors can influence analysts. Some vendors put a lot of effort into flattering analyst egos, making them think they have privileged access to senior management, giving them exclusive previews, showing enormous respect for their strategic insights; such flattery pays off when the analyst perceives these vendor as brimming with vision and ability to execute. Vendors can also influence analysts by making their job easier, giving them lots of free material that can be reworked into their reports.

See my previous posts on Industry Analyst Coverage and A Value Proposition for Industry Analysis.

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