Gartner Inc IT

Gartner Still Needs to Learn the Ropes About Navigating an Uncertain Economic Environment

Gartner is many IT professionals’ go-to source for the latest industry insights. With over 2,400 experts and 13,000 customers, the company’s size is significantly larger than its direct competitors, which leads to economies of scale. In the IT research and advisory world, providing comprehensive coverage across different areas of interest requires the company to assemble a team of experts that comes with fixed salary expenses. However, the marginal cost of delivering an extra copy of the research report to a new client is close to zero. Therefore, when a company like Gartner has amassed a large customer base that can effectively spread out its fixed costs, the unit economics would look more attractive than those of its smaller counterparts. Over the past five years, Gartner has established a consistent margin advantage of at least 10 percentage points relative to its next-largest competitor. We expect this trend to continue, given Gartner’s unparalleled scale in IT research and advisory.