Deltek buys Wash Mgmt Group/Fed Sources- Take 2

The news of Deltek purchasing Washington Management Group and Federal Sources created quite a stir in the contracting community. Here are my thoughts on my previous post, which was only posting the Deltek press release.

Deltek, under Kevin Parker (who joined Deltek in 2005) there have been several acquisitions, including Input and GovWin (formerly MySBX). Mr Parker discussed these and other issues on my radio show last October - http://www.federalnewsradio.com/?sid=2075743&nid=58&_hw=Kevin+parker .
During that interview, Mr Parker stated that Deltek's push into offering more services to the contractor community was far from over.

I still don't think Deltek is done, but I would be hard pressed to figure out what would be next. No insider info here.

What this means to the contracting community is that Deltek/Input/FedSources offer a comprehensive suite of paid information and consulting services. Add in GovWin for the small contractors and you has an impressive array free and paid services.

For those companies that used to use both services, you will pay less. For the companies that used to try to negotiate a better price by playing Fed Sources off Input, well, that is probably over.

Are there other sources available for the contracting community? Yes, but they are mostly smaller providers, with the exception of Bloomberg Government, BGov.

I am still not certain BGov is a direct competitor to Deltek. If they are, with the acquisition of Federal Sources by Deltek, BGov will find it more difficult to compete directly with Deltek.

This is a relationship driven market and between Deltek, Input, WMG and Fed Sources, most of the major contracting community is well covered. Factor in the Colaition for government Procurement and you have the GSA  Schedules covered too.

It will be interesting to watch the ripple effects from this.

BGov Rumored to be making another purchase

Yet another rumor emerged through the grapevine this week: BGov is looking to purchase a contract service in the state and local space.

True or not, the move would make sense given the purchase of Eagle Eye for federal data, and the recent hiring of skilled editorial talent like Allan Holmes.

I have also spoken to a few (very few, this is no scientific sampling) of the folks who have taken the "free 30 day test drive" of the BGov product. For the most part, they find it interesting but not useful enough to purchase. At least not yet.

If you hear of anything regarding BGov and its new moves, drop me a line at Mark FederalDirectnet. Confidentiality of sources is guaranteed.

INPUT sale(?)- day 4, take 3

So, here's what I've heard since Saturday:

- that Deltek was a potential buyer;

- that 3 companies were in the final bidding and there might be a deal to slice INPUT into pieces among the 3 (very strange, but I guess it's possible);

- that it could be Fed Sources (sorry, but where would they get the money?):

- that it is a private equity firm (makes the most sense);

- that a very senior person has left (only one source on this one);

- several people jumped in to tell me that INPUT has been "on the block" for several years (only partly accurate);

- that the likelihood of it being BGov is low (this from several reliable sources).

Please keep in mind that I am not getting anything from inside INPUT and I am not aware that I know anyone inside BGov. Even though I am connected to over 2,500 people in the government market on LinkedIn, I have no Bloomberg/BGov contacts.

SO, my post Saturday was probably off the mark in who the buyer was- if there was a sale.

I predicated my assumption/guess on several things I heard last week, most of which I cannot mention here. Suffice it to say, there was something going down Thursday and Friday that involved INPUT. Whether or not it resulted in a sale, well, we'll all find out about the same time. Maybe here.

Which leads me to conclude that I may be wrong about BGov/Bloomberg (expert witnesses are against me here), and that the final deal may still be in the works.

If that's the case, I was wrong on both fronts (buyer and sale) - but boy, it was fun thinking something had occurred!

But stay tuned- I will be watching INPUT, FSI and Bloomberg closely.... and news is coming very soon...

Input- Take Two!

While I always appreciate being in Bisnow, I never said BGov was the buyer- I said that's what I heard.

I have also heard that government accounting software firm Deltek was the buyer. And several people saying it is a private equity firm.

There have been several other rumors regarding key people leaving Input- all unverified.

If I had one major guess, it would be that I believe the company has been sold, but we are all waiting to see who the buyer is.

Bloomberg announces President for Bgov

Sean Callahan of BtoB magazine reports the announcement of a new president for Bloomberg's government division.

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100303/MEDIABUSINESS/100309960/1078

According to BtoB (direct quote from BtoB is in italics)- (Bloomberg) said Tuesday that Kevin Sheekey is rejoining the company as chairman of the government-oriented division. He will also oversee government relations and communications.

Sheekey, who most recently was New York’s deputy mayor for government affairs, worked at Bloomberg from 1997 to 2001.

“Kevin will oversee a service that applies Bloomberg’s unmatched capabilities in data gathering and analytics to a one-stop, integrated information source of government information. Bloomberg is ideally positioned to address the fragmented market for information about people, decisions and data in Washington that affect business,” Daniel Doctoroff, president of Bloomberg, said in a statement. Bloomberg, which has traditionally shunned acquisitions, has been aggressively expanding beyond its core terminals business. The company acquired BusinessWeek late last year.

Alright, let's deal with a couple of tidbits in here.

First, being a former Bloomie and Deputy Mayor of NYC apparently qualifies Mr Sheekey as 'the guy'. While there is sense in this, as far as knowing the Bloomberg method, there is no sense in it if they plan on his being the main BGov person in DC. This market requires an insider as the driver. DC is a relationship driven market and you need a Rolodex or LinkedIn connections with hundreds if not thousands of contacts and those people need to know and trust YOU.

The other point I wish to address is "the fragmented market for information about people, decisions and data in Washington that affect business." While this is a catchy phrase, it means very little.

People, decisions and data.

This implies that there is information worth paying for that is not currently available in DC, or at least not available in one place.- information that involves each of these elements.

This reminds me of a situation I faced in 2002, when I was called by someone from NY who wanted to start a publication in DC - The Federal Paper. I wrote an Amtower Off-White Paper about this (see below), but I advised him against moving ahead. the federal paper folded after 2 issues.

Here is the Off White Paper (and keep in mind I wrote this long before The Apprentice):

"Off-White Paper" #17 - News for the News Impaired: An Amtower "Off-White" Paper

In 1998, I wrote a second Off-White paper on trade shows (Off-White 3.1), about the soon to be ill-fated GovTechNet. The overall point of that piece was "where is the value-add" for this event – what’s the point? We already have two big events, and unless you’re targeting a strong niche, there is no need for this. Well, I pissed off a few people. Again.

And, the event folded in short order.

And now we have a similar situation. The Washington Post announced 9/23/02 what many of us already knew, that there was another publication being launched in the Federal market. The Federal Paper is to be a weekly targeting "senior executives, presidential appointees, and the Hill" (read: the already overworked, the learning impaired, & the otherwise unemployable) with news that apparently they aren’t getting elsewhere. A controlled circulation base of 30,000 of people who need yet another news source.

The breakdown:

- 7,000+ presidential appointees (deer-in-the-headlights syndrome);
the Hill, 1,000-2,000 (with news about the executive branch? They already know everything they want to know, which they get from The Idiot’s Guide to the Executive Branch);

- 5,000+ career SES people (my God, people who work!)

- and another 15,000 "senior" people (AARP?).

News in Washington, D.C. which they aren’t getting elsewhere?

Well, of course, there is no news for these people in Roll Call, Congressional Quarterly, National Journal, Government Executive, the Post’s Federal Page, FCW or GCN and a host of others, including paid newsletters, e-newsletters, web sites and gossip.

That being said, an experienced team has been assembled to pull this off, and it is led by someone with a publishing background.

But the premise remains weak, and when my clients and friends call (I get at least one a day on this one), my advice is "save your money, or if you have that much to spare, give it to me."

So here’s how they got there…

Market research: three sycophants and a rich person in a room with a case of Heineken and four straws.

Rich guy: "I think we can make a play in the public sector publishing market."
Sycophant 1: " Oohhh, it’s a great market."
Sycophant 2: "Aahhh, it’s a huge market."
Sycophant 3: "Yes, but aren’t there…"
Rich guy: "You’re fired."
Sycophant 1: "Decisive."
Sycophant 2: "Forceful."
Rich guy: "Adjourned."

Come to think of it, I am out of cat litter.

Not that I have an opinion on this….

Amtower

Copyright 2002, Amtower & Company
http://www.federaldirect.net/offwhite17.html

Bloomberg & BGov take 5 - what are they DOING?

These two posts are from January 27 FishbowlDC posts. FishbowlDC provides the inside scoop on DC media. You should subscribe if DC media is of interest to you (if you have PR responsibility or are just a media junkie, FishbowlDC is a great source). My personal thanks and kudos to FishbowlDC for following this so closely.

http://www.mediabistro.com/fishbowlDC/news_notes/new_bloomberg_initiative_takes_aim_at_hill_rags_150213.asp

1/27/10, 4:59 PM
"Sources tell FishbowlDC that an underground project, slated to put a hurtin' on NJ, CQ-Roll Call, The Hill and Politico is underway at the Washington bureau of Bloomberg News. Rumor has it that the project's aim is to specifically report and track Cap Hill news using a dashboard site similar to Bloomberg's existing technology. "

Few details about the initiative have surfaced but the competition has already begun in the HR department. Reportedly led by former CQ Editor and VP Mike Riley, we hear that recruiting efforts have already snagged several CQ folks including top salesperson Joanna Matthews.
At the time of this post, Bloomberg could not comment on the project or specific hires but a rep tells FishbowlDC, "We are hiring globally and Washington is increasingly important to our subscribers, readers, listeners and viewers. Naturally we are adding staff in the DC bureau."

http://www.mediabistro.com/fishbowlDC/news_notes/bloombergs_bgov_details_begin_to_surface__150240.asp

1/27/10
"Bloomberg News still isn't talking about the development of their new product, designed to take on The Hill, CQ-Roll Call and other Cap Hill pubs but details about the venture have started seeping out since FishbowlDC first reported this afternoon.
Sources at the organization say the initiative is being overseen by execs Chris Walters and Don Baptiste who have traveling to Washington on a weekly basis. Additionally, Chris Roush from UNC's "Talking Biz News" tells us that the project is expected to have a $100 million budget, will create 40-50 editorial positions and is being referred to as "BGov" internally."

Amtower analysis (see my previous posts on this over the last 10 days): Bloomberg is looking to become a major paid information provider on multiple fronts.

- On one front, they will take on the Capitol Hill pubs (National Journal, Roll Call, etc), which includes the Hill and K street (lobbying) audience.

- On another front they will apply their traditional market expertise (finance/investment) to the complex government contracting community and provide an investment service to Wall Street that focuses on Global One - selling to the government (Federal, state and local). Input already announced they were providing an investment tool, Government Investment Advisor (GovIA), providing. Frankly a product like this is long overdue. "

- On yet a third front, Bloomberg will compete against Input, Federal Sources, Onvia and others in providing emerging contract opportunity data to the contracting community.

An Napoleon and others found out, fighting wars on multiple fronts is not a winning proposition.

Bloomberg does have deep pockets and can buy some of the competition, and this is what I expect to happen. With their apparently aggressive growth goals, the "purchase the competition" method is most likely.

Stay tuned....

More on Bloomberg & BGov, take 4

This story gets more interesting every day.

www.Mediabistro.com has a couple interesting posts regarding Bloomberg's foray into the B2G marketplace

First-
"Ex-CQ CEO on Bloomberg BGov Board

The buzz is true and painful. Bob Merry, former CQ CEO, has accepted a position on the board of advisors for Bloomberg's BGov enterprise, FishbowlDC has learned."
http://www.mediabistro.com/fishbowlDC/the_revolving_door/excq_ceo_on_bloomberg_bgov_board__150783.asp

This post is from Feb 2, and predates my first post by over 2 weeks. If I had been reading my daily emails from Mediabistro/fishbowl every day, I'd have been on this sooner! I knew Bloomberg was interested in B2G late last fall, but didn't think much of it. With the addition of Bob Merry to the advisory board of BGov, we know there is now some adult supervision. It would be interesting to know who else they have for this board.

Second-
"CQ-Roll Call Group Freezing Out Bloomberg -
Relations are getting icy between Bloomberg News and CQ-Roll Call Group.
A source at Bloomberg is saying that the CQ-Roll Call Group has refused to renew Bloomberg's subscriptions to CQ's congressional reporting services because, according to the source, "they now consider us a competitor."
http://www.mediabistro.com/fishbowlDC/news_notes/cqroll_call_group_freezing_out_bloomberg__152434.asp

Now this is more interesting, as it indicates more of the breadth and depth that Bloomberg may be interested in pursuing, or at least the paranoia they are causing by entering the market.

The paranoia is legitimate. It is not yet known how broad a net Bloomberg/BGov will cast over the market, so anyone providing government information may have cause for some alarm.

Upside: If Bloomberg makes the market more popular, more companies may be interested in entering the market and investors will may find it a more attractive market segment. Bloomberg would not be the only beneficiary from this.

What is known is that budgets are tight, information sources abound on the web for much of this data (often in raw form, but it is there), and that the true value comes from the added value current information providers bring to the table. The value-add comes from the ability to make sense from the data, make it usable, then useful. This comes from being a proactive student of the market over a long period of time. You have to know what is important to the market and be able to bring those tiny nuggets to the surface and delveier them to the right audience.

There is a major difference between making data usable and making it useful. Technically, FPDS (Federal Procurement Data Service) data is usable, but it has not been made useful (actionable). In the more raw form, it requires analysis from someone familiar with the nuances of the market to add true value. Top flight talent with B2G contracting experience on this is not readily available. It is a small club.

It will be interesting to see

- if Bloomberg/BGov will make more purchases,
- what kind of products and services they roll out,
- who will drive the BGov group,
- how the BGov group will be populated
- who Bloomberg will add to the BGov Board,
- how the competitors respond.

This is a long-term market. Companies entering with visions of near-term market domination predicated on a "brand" name are not only disappointed, but often end up as chalk outlines on the sidewalk. Bloomberg and BGov may have a real play, but if they enter with attitude and visions of near-term radical growth, it will be interesting to see if BGov becomes BGone.

Bloomberg enters B2G, Input enters Wall Steet - take 3

Among others, Talking Biz News reported in January that Bloomberg was preparing to launch a competitor to Congressional Quarterly (aka CG, not to be confused with GQ, if that is still around). The other publications in that arena is the National Journal, The Hill and Roll Call.
http://weblogs.jomc.unc.edu/talkingbiznews/?p=13043

Each of these news services/publications is quite expensive, so the circulation base (# of subscribers) was never huge.

CQ is currently owned by the Roll Call Group. I had the opportunity to consult with the original owner, Congressional Quarterly, on the waning circulation of the publication several years back. When I went to my first meeting there, they were trying to grow the circulation base for the publication while it was shrinking. The web was providing much of the news previously not available to the general public. This was several years back: factor in now the use of all the web 2.0 tools and news sources and the ability to get the info without the expensive publications is very real.

My advice back then was to shore up the base rather than to look for new subscribers. The logic was simple: after many years of publishing, they had exhausted most of the sources for new subscribers. The best use of the marketing funds was to keep those who were already subscribers and try to get those back who had recently cancelled. These publications, while fun and interesting, are difficult to sell on a one-to-one basis.

The market for exclusive information sources is shrinking because the "exclusivity" of the information is disappearing - there are literally hundreds of web-based sources that are free or cheap providing similar information.

The key is adding value for the subscriber. Bloomberg will certainly be able to add value considering the number of information sources it has to draw on, including BusinessWeek and the other Bloomberg sources.

In the meantime, Input has not been idle. On February 8 they announced the launch of Government Investing Advisor (GovIA). Quoting form the press release, Gov IA is "a new research offering designed to deliver unique data and insights to the investing community on government spending and contractor activity. Available immediately to subscribers, GovIA provides hard-to-find information and insight on the largest, publicly traded companies serving government, as well as government market data, spending analysis and forecasts."

To focus on this market Input hired Julie Santoriello Chariell as Vice President of Financial Services. She is a financial industry analyst formerly of Morgan Stanley.

Federal Sources is not sitting and waiting either. In a conversation with Ray Bjorklund Friday afternoon, he indicates Federal Sources is focusing on the core business of making their clients successful in their pursuit of government business. Sounds like a good move.

Bloomberg buys Eagle Eye, take 2

So the news is official- Bloomberg is entering the government market by purchasing government contract & grant data publisher Eagle Eye Publishing.

Now the speculation is...... will they directly target Input and Federal Sources, or will they go after a different slice of the market? Where will marketshare occur?

Will they be able to differentiate themselves in a way that will appeal to whoever their audience is? Where will the value-add be?

Do they have someone or will they find someone of the caliber of Kevin Plexico or Ray Bjorklund to make the data (a truly vast trove at Eagle Eye) useful and usable?

I have heard from more than one source that Bloomberg has aggressive sales goals. But what are they selling and who is buying?

Those of us who have studied the market for more than a few years have all seen many companies come in with unrealistic expectations predicated on tea leaves and wishful thinking, the absolute knowledge that your brand will make the phone ring, and other equally unreliable forecasting tools.

This market is driven by relationships, and the relationships are backed by being able to deliver.

Watching what happens with Bloomberg over the next several months will be interesting.

http://www.federalnewsradio.com/index.php?nid=19&sid=1891514

Bloomberg Enters B2G Market

I heard rumblings late last year that financial news giant Bloomberg was looking for a play in the B2G market.

Today I heard that Bloomberg bought government contract and grant research firm Eagle Eye Publishers. While the details are blurry, here is what I hear:

1) Bloomberg bought the data, and left founder & owner Paul Murphy with the name;
2) Mr Murphy will stay as a consultant for 6 months;
3) Bloomberg may not be done buying stuff;
4) Bloomberg has very aggressive sales goals.

What this means to the B2G world:

1) Onvia, Federal Sources, Input, Carroll Publishing and others now have another competitor - well actually the same number, as Eagle Eye is gone. But Bloomberg will be better financed and more aggressive.

2) Contractors will be getting sales calls from a new player that will be merciless in its pursuit of marketshare.

3) Maybe Washington Technology and WFED will have a new advertiser!

What value does Bloomberg bring to the market? That remains to be determined, but suffice it to say they have the resources to be a real player. If they can jettison any attitude that might accompany their entrance ("We're Bloomberg and you're not" a la Chevy Chase on Saturday Night Live from the old days), they should do well.

If they come in with the attitude, many of us will be available to point it out.

Regardless, this will be fun to watch unfold.

FOSE reversal - expo is free to all

If somehow you have missed it, FOSE occurs next week at the DC Convention Center.

Over the last several weeks radio spots for FOSE were saying the expo was "free for DOD and Federal employees". The FOSE web site now says the expo portion is free for DOD, Federal employees and government contractors.

This is not the first time this reversal has occured. A few years back, under the previous owner (Post Newsweek Tech), FOSE did this when the contractor community balked at paying $50 to see exhibits. It seems overall attendance may be down again, and the last minute jolt might help. I understand the need to monetize the event in as many ways as possible, but charging contractors for the exhibits does not work and with fewer people in the exhibit halls, the show floor looks like a ghost town.

If you'd like to register, go to
www.FOSE.com

I will not be attending for the 2nd time in 25 years. I will be leaving the country on the 11th and will have several things to do prior to that. Even if I were in town, there are fewer reasons for me to attend. High among my reasons for not attending is the lack of parking in the vicinity of the DC Convention Center. I hate going there. Whoever designed this place had an obvious Metro bias which does not servve the best interests of the event producers.

Last year I was at FOSE to do a live radio broadcast from the show floor, and it was fun having several of my friends who were exhibiting as guests on the show. This year my radio station - WFED, www.FederalNewsRadio.com - opted not to go, as did some of the exhibitors who were on my show.

I would like FOSE to succeed, but the age for the mega-tech show may be passing. MacWorld and others are going away. Some tech trade pubs are folding. VAR Business just put out its last issue and will now be part of CRN.

If companies have marketing dollars, apparently they are looking for other places to spend them.

FOSE must reinvent itself if it is to survive. It would be great to have one big event that attracted the IT community (other than the Input holiday party), but it is going to take some radically new thinking.

End of Week Notes

The Meet/Network with the B2G Press event I referenced a few days ago now has a web site for registration - http://www.eventbrite.com/event/263857204. I would suggest registering early as this will sell out. If you attend, look for me.

My radio show Monday (2/2/09) will feature Bob Woods, CEO of Topside Consulting (www.topside-consulting.com). Bob is a former Federal CIO (GSA, VA, others) and we thoroughly discuss what the transition means to both senior Feds and the contractor community. This is a good interview. The show airs at noon Monday on 1500 AM in Washington, DC and is simulcast on www.FederalNewsradio.com, where it will also be archived. On Monday, Feb 9, my guest will be Kevin Plexico of Input.

I will be in the February issue of Washington Technology...comes out Monday.

At another 1105 media property, Wyatt Kash, editor in chief of Government Computer News (www.GCN.com , also takes the top spot at Defense Systems magazine (http://defensesystems.com) while retaining his role at GCN.

And in case you missed it, I was also featured at www.TheStreet.com
http://www.thestreet.com/story/10458382/1/the-government-as-a-rich-business-client.html

Have a great weekend!