In a recent article, Phil Fersht, founder of HfS Research, laments about the decline of the “rock star analyst” model, once used by big ticket analyst firms. He notes the recent “succession of high-profile analyst stars making vendor moves.” He also believes that the shift of firms away from this model is due to the emergence of analyst blogs and the ability of analysts “to nuture their digital infamy.” Basically “it’s all about the analyst firm brand, not the individual analyst,” according to the new model. Mr. Fersht gives a few reasons why the demise of the rock star analyst is depressing for the analyst industry:
- Clients value relationships with individual analysts more than written research.
- People want to trust with whom they share their confidential information.
- Analyst firms are caught in a Catch-22 between their corporate brands and their individual analyst brands.
- Rogue analysts of varying quality are setting up their own “boutiques.”