Gartner has a flawed model for the magic quadrant
Gartner has a flawed model for its magic quadrant. Disclaimer: We have used and I think are still using Gartner services. But I wanted to highlight a basic flaw in their approach.
One of the primary qualification criteria for the magic quadrant is revenue. For example, look at the magic quadrant for CCaaS, our domain. What do you see? All the companies will be from North America. There is one outlier, but thats also from the UK. This is not by chance. This is simply because of the power of the dollar. So you cannot be in the magic quadrant unless you serve the US market. Plain and simple. Just like the NBA has a competition in the US and they call the winners as “world” champions, the magic quadrant will have a North American tinge always.
I will tell you why it is wrong. Consider our case. We serve more than 100,000 agents on our single hosted CCaaS platform. But because most of our client base is in India, we charge anywhere from $30-$50 in India. For same features and support and everything else, in the US the agent cost is $150-$200. So all things considered, just because we are in a different market we will not be considered for the magic quadrant. If we were in the US market we would be a $150-$200 million ARR company. But by not considering SaaS companies like ours(they are many many more in other domains as well) Gartner is not showing the best options in the market. Just a thought. Please share and comment your thoughts as I think this is gap in the current market.
