Why Analyst Backing Matters

Why Analyst Backing Matters

Analyst opinions form the background of many industries, whether it’s the famous Standard and Poor’s or Moody’s ratings for government bonds or Gartner and Forrester for companies, notably tech. But how much stock should we put into these analysts? And should MSPs care whether their vendors are important enough to be analyzed by these companies?

Understanding Analysts

The analyst role is to act as a trusted adviser, helping companies make decisions and guide businesses in improving their processes and products. For UCaaS, the most important ones are:

These analysts consider a range of data, usually obtained from the vendors themselves.  In addition, they may take into account third-party reviews, such as Gartner Peer Insights. After multiple meetings and presentations, the data is analyzed and then put into a report that other companies can use to make business decisions.

“Analysts have the privileged position of looking at the market without the bias and noise of vendors, customers and investors,” said Emiliano Tomasoni, CMO of Wildix. “As a result, they generally have a more objective viewpoint than anyone else, and it’s this viewpoint that is so valuable for everyone involved in the tech world. By understanding how others see us, Wildix can move forward with a plan to grow and get even better.”

The Importance of Analyst Backing in UCaaS

Of course, there are plenty of firms who survive in the tech world without being backed by any analysts whatsoever — and for many years, Wildix did not have that backing, either. “When we were a smaller solution,” stated Emiliano, “it was much harder to gain traction in the market. We were competing against established brands, and sometimes analyst backing was a major differentiator between them and us.”

All that changed when Wildix became recognized as a key player by multiple companies. “The Gartner and Forrester recognition in particular were among the biggest achievements for us as a company,” noted Emiliano. “The Magic Quadrant [Gartner], the UCaaS Landscape Study [Forrester] and FrostRadar [Frost & Sullivan] all meant that we are an active part of the market, and they also gave us an open dialog with them to help us guide our internal strategies. The data that analysts provide to customers also supports them in their decision process, helping them see the value of our solutions and how they stack up against others.”

Limitations and Cautions

One of the core criticisms of analyst companies, however, is their overreliance on market share as an indicator of which solution is leading. Few would argue that MS Teams, for example, is actually the best solution for many businesses — especially MSPs who are looking to gain actual value for their customers. Yet it consistently appears at the top of many lists, primarily because it has a very large market share.

“Every proposal has its place in the market,” said Emiliano. “No one can be everything to every customer, and customers must ask themselves this: ‘What objectives do I need to realize?’ They then must choose the solution that actually works for them, not just because it appears in a certain place in the analyst’s rankings.”

Analysts also make assumptions as well, based on their knowledge of organizations. Not every organization functions in the same way — and when you’re the only company in an analyst’s group that is debt-free, for example, you don’t have the same price-driven considerations that others might have. “Wildix is a very efficient organization,” noted Emiliano. “We aim to provide value to our MSPs and their end-users without the inflated cost associated with large shareholders.”

Balancing Analyst Insight With Practical Considerations

The big question, then, is how companies should balance practical considerations with analyst opinions. “Ratings are helpful, and they’re often accurate,” stated Emiliano. “But what matters is not just the product but how the product is delivered. Plenty of companies will sell you a product, but how many companies will sell you something that will improve the value of your business? What companies must look at is who is delivering that product, how it improves your business’s processes and what the outcome should look like. A flexible solution such as Wildix delivered by a trained MSP with all the integrations and additional add-ons that you need is usually much more effective than a simple MS Teams installation.”

What analysts do cover is the overall competitive landscape. And for many businesses, that’s critical. “But it needs to be the start of practical considerations, not the end-point,” added Emiliano.

Future Trends and Analyst Perspectives in UCaaS

Overall, analyst rankings will continue to play an important role in the UCaaS landscape. Their information will be broadly up to date, and businesses know they can rely on them. Yet with more businesses needing UCaaS solutions, not everyone will be able to afford the reports that these analysts deliver. More and more are relying on peer insights provided for free by Gartner and review websites, such as G2.

“One of the recurring challenges for smaller vendors is getting a good number of reviews for solutions,” noted Emiliano. “And if you’re channel-only, it becomes even harder, as customers don’t buy from you directly, increasing the distance between you and the eventual user. However, it’s a small price to pay for being a small but agile vendor who can respond to market requirements far quicker than many traditional giants can.”

Yet the future is bright for Wildix. “We’ve been recognized by the Gartner Magic Quadrant for the third year in a row,” stated Emiliano. “And that means a lot to us.”

If you’d like to read more, why not check out our article on the cost of living and how MSPs can still sell in tight economic situations.

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