Infrastructure Analytics believes that the way most analyst firms do market segmentation is just plain wrong.

Almost 30 years experience working with companies ranging from early-stage startups to the Fortune 100 clearly demonstrates that while revenues, headcount, and even nodes in-service are useful data points when it comes to aligning a sales force and field support teams, all these metrics miss the mark when vendors are trying to fine-tune their go-to-market strategy.

Why? Because while all companies defined as "enterprise", "mid range" or "commercial" clearly share some important characteristics, their differences in key areas are often profound, and invariably outweigh the similarities. Because of this, market segmentation and go-to-market strategies based on the broad criteria of revenues or headcount will always be inexact and wastefully inefficient.

So why do other analyst firms look at markets this way?  Institutional inertia:  they do it that way because they have aways done it that way.  Plus, it's sooo easy. 

Besides, when you run a big firm being inexact is something you can live with if the report is leverageable.

Just as significantly, the "SMB" (small and medium business) segment is also poorly defined both by vendors and by most of the analyst firms that service them. Worldwide, there is very little understanding of what SMB means; in North America, most marketing managers are hard pressed even to make a distinction between "SMB" and"SME" (small and medium enterprise).

Don't believe us?  Ask three colleagues to define SMB and SME as your company sees them.

All of which begs the question: 

How useful is market understanding based on non-significant criteria, on wishy-washy definitions, or on business assumptions that simply don't map well to the realities of the marketplace?

Are you really comfortable basing your future on bad assumptions such as those?

If any of this sounds familiar, and if you have revenue responsibility for a product, product line, or business unit, this ought to be of interest to you.

Want to know more? Set up a briefing and find out what we have to offer.

We all know that the longest journey starts with a single step.  But if you don't know where you are going, how will you know when you have really arrived?

Infrascruture Analytics: an alternative

Startups are often long on ideas and potential, but short on cash. Talk with IA about structuring a set of affordable services that enable newer companies to compete with the big boys from day one.

Want to help the direct sales team and your channel partners make their numbers?  Click here.