Has Ovum’s influence diminished?
Ovum, my former employer, finally succumbed to the lure of cash, when it agreed to be acquired by Datamonitor. There is a near universal condemnation of this move by the Analyst Relations industry – read the backlash here.
It’s nearly four years since I worked at Ovum, and it has clearly changed in this time as it headed towards its IPO this year. But its internal organisational changes have been mirrored by a rapid increase in the firm’s influence, especially in the telecoms sector. It even makes KCG’s list of Deal Makers/Breakers (but only in Europe). Ovum was identified by IDC (another former employer of mine) as a prime competitor, again in Europe.
I’ll leave the wisdom or otherwise of the acquisition to emerge over time. No predictions here. But is Ovum’s influence impacted by this transaction? And where does this leave Ovum’s customers?
Clearly, Ovum’s geographic reach is strengthened, especially in the US. The US has been somewhat elusive for Ovum, and it has sought for over ten years to become an established player “across the pond.” It now has broad access to this market, but I suspect that much of the analysis (and analysts?) will have to be reorientated around the US market for it to be purchased there. This will take time, money and "restructuring."
I’m worried, too, about Ovum’s status as a respected and independent voice. Among the plethora of analyst firms, those that had no tint of vendor pay-to-play were few indeed, and Ovum headed the list. Being integrated into Datamonitor and Butler will be a major culture clash, in personalities but also in market position. There will be tears along the way.
Ovum’s analysts always aimed for the highest standards of research and opinion, even if this conflicted with commercial opportunism. While Ovum has had to become more business-focussed recently, I still think that analysis processes will have to change. And this can only be to the detriment of customers.
I have no doubt that the new entity will strive to counter such concerns, and I genuinely wish the ex-Ovum staff well – I have great respect for Chris, Fiona, Fash and the rest. But if you’re an Ovum customer, perhaps you should defer your renewal until the dust settles.
influencer marketing
It’s nearly four years since I worked at Ovum, and it has clearly changed in this time as it headed towards its IPO this year. But its internal organisational changes have been mirrored by a rapid increase in the firm’s influence, especially in the telecoms sector. It even makes KCG’s list of Deal Makers/Breakers (but only in Europe). Ovum was identified by IDC (another former employer of mine) as a prime competitor, again in Europe.
I’ll leave the wisdom or otherwise of the acquisition to emerge over time. No predictions here. But is Ovum’s influence impacted by this transaction? And where does this leave Ovum’s customers?
Clearly, Ovum’s geographic reach is strengthened, especially in the US. The US has been somewhat elusive for Ovum, and it has sought for over ten years to become an established player “across the pond.” It now has broad access to this market, but I suspect that much of the analysis (and analysts?) will have to be reorientated around the US market for it to be purchased there. This will take time, money and "restructuring."
I’m worried, too, about Ovum’s status as a respected and independent voice. Among the plethora of analyst firms, those that had no tint of vendor pay-to-play were few indeed, and Ovum headed the list. Being integrated into Datamonitor and Butler will be a major culture clash, in personalities but also in market position. There will be tears along the way.
Ovum’s analysts always aimed for the highest standards of research and opinion, even if this conflicted with commercial opportunism. While Ovum has had to become more business-focussed recently, I still think that analysis processes will have to change. And this can only be to the detriment of customers.
I have no doubt that the new entity will strive to counter such concerns, and I genuinely wish the ex-Ovum staff well – I have great respect for Chris, Fiona, Fash and the rest. But if you’re an Ovum customer, perhaps you should defer your renewal until the dust settles.
influencer marketing
Labels: influencer marketing, influencers
posted by Duncan Brown at 8:44 pm
1 Comments:
Hi Duncan,
Ovum's not going to be integrated into Butler and Datamonitor as a brand or as a research, consulting and advisory business. I think that will forestall some of risks you discuss. I've spoken to managers at both firms, and posted by thoughts at http://analystrelations.blogspot.com/2006/10/ovum-smart-buy-that-needs-careful.html.
Duncan.
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