Feeds

Gartner CEO gets Darwinian

Shrinking IT biz gene pool

  • alert
  • submit to reddit

Internet Security Threat Report 2014

If it's an IT company and your mum's heard of it, chances are it won't exist "in its current form in three years".

That's what Michael Fleisher, chairman and CEO of Gartner, the IT analyst firm, reckons. The HP-Compaq combo is simply the first of many mega-mergers that will be seen in the next few years, he predicts.

Speaking at Gartner Symposium/ITxpo 2001, Fleisher pronounced that CEOs and CIOs need to anticipate "incredible consolidation - both in your own industry as well as in your suppliers. Your most trusted partner may suddenly be subsumed by another company that you chose not to do business with."

This is a fairly commonplace observation; household-name companies - as opposed to brands - rarely survive too long. They get bought or broken up by the survivors - the Shells, the IBMs, the GEs, the Nestles.

In times of economic stress/market contraction/market maturity this process accelerates. We all know this: The clever thing is to work out which are predators and which are prey. Aside from one Bear Stearns analyst at the start of the year, no-one predicted that Compaq was in the latter camp.

Active Buyer: Screw the Supplier

One of the things we like about Gartner is its focus on the user. It is unafraid to diss vendors in public - as its recent spats with Microsoft over licensing fees and IIS demonstrate. This is rare for an IT analyst firm.

In his speech at ITxpo, Fleisher called on business leaders will need to understand how their company not only generates revenue but generates cash flow.

"As we come into increasingly difficult times, understanding how your company generates and leverages cash earnings will be critical Your focus on changing the nature of your relationship with suppliers and customers is so important because those are the only places where you are going to increase your company's cash flow."

Sounds like a call to arm to us. With KPMG this month releasing a report last month, showing that the companies waste £17bn a year on IT - in the UK alone, and that's because of crap purchasing practice only - think what could be achieved by getting a bit strategic.

"If you are a CIO, 100 percent of your strategic focus needs to be on using IT to change the nature of your relationship with your suppliers and your relationship with your customers," Fleisher says. "You must completely delegate nonstrategic business processes. This is the only way CIOs can be sure to use their intellect and horsepower on strategic business issues." ®

Related Stories

Ditch Microsoft IIS now, says Gartner
Upgrade your MS apps before 1 October - Gartner
UK plc wastes £17bn a year on IT

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.