Feeds

Gartner CEO gets Darwinian

Shrinking IT biz gene pool

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.