What goes around isn't coming around

Consolidated firms in particular are hampered in the modern IT sales cycle, says Gartner

Newly acquired IT companies are struggling to maintain momentum as the technology buying cycle continues to become more fluid and dynamic, according to Gartner.

Todd Berkowitz, research director at Gartner, said the job of selling technology has already become more complicated for various reasons – but firms that have recently been through a merger or an acquisition, in an increasingly consolidated IT sector, have more trouble than average.

"Provider salespeople, especially those selling more complex or higher-value solutions, already deal with the realities of the new technology buying cycle," he said.

"Adding the complication of an M&A event to this already-disruptive buying cycle shift can make a difficult job even harder, especially if acquisitions are larger or are likely to force salespeople out of their comfort zones."

Gartner has indicated that the advance of social networking, as part of the growth of information availability and flow generally, is one disruptive force on sales cycles with which IT providers struggle. Newly acquired, expanded firms can be unwieldy and their employees can be wary of putting their heads above the parapet and taking risks.

But the research firm also says that early and ongoing engagement with salespeople, marketers, and customers can minimise any confusion and resulting sales slow-down.

"Sales and marketing leaders from both companies in the transaction must proactively engage with a broad constituency, to capitalise on opportunities and prevent competitive disruption," it suggested in a research note out today.

However, haste can make waste. Integration must be done carefully as well as in a timely manner, according to Berkowitz.

"Time is needed to ensure synchronisation between the buying and selling cycles, and extra time is needed to do this properly when newly acquired solutions are added to the mix," he said.

"Providers on the acquisition side of the transaction should spend time looking at the sales model of the company they acquired and determine if there are some elements worth adopting into their own sales process. A rushed sales integration makes it much more difficult to take advantage of this opportunity."

Maintaining the momentum of sales post-acquisition can have a major impact on the long-term success of the new company, according to Gartner. Meanwhile, a desire for confidentiality can mean input from stakeholders and feet on the ground may be restricted.

"While the head of sales and the chief marketing officer are critical to this process, they are, by design, further removed from the prospects and customers," according to Gartner's note.

Company strategy meetings in the first 90 to 100 days after the announcement need to expand beyond senior management, with lines of communication planned then and eventually opened up further – partly to get people thinking longer term.

"In theory, the faster the sales forces can sell each other's solutions, the more quickly revenue goals can be achieved. But in reality, faster does not always mean better, and in some cases, the risks significantly outweigh the benefits," the research firm said.

Gartner's research is part of a new special report The Future of IT Sales.