Frost & Sullivan

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Frost & Sullivan
IndustryMarket research, Consulting
Founded1961; 60 years ago (1961)
FounderDan L. Sullivan & Lore A. Frost
United States
Key people
David Frigstad (Chairman)
Darrell Huntsman (CEO)[1]
ServicesManagement consulting (growth strategy) and market research
RevenueUSD 0.18 billion
Number of employees

Frost & Sullivan is a business consulting firm involved in market research and analysis, growth strategy consulting, and corporate training across multiple industries. It is headquartered in Mountain View, California, and has 40 offices on six continents.[2]


Frost & Sullivan was founded by Dan L. Sullivan and Lore A. Frost[3][4] in New York City in 1961.[5] The company initially focused on research related to new technologies, distribution channels and business trends. In 1972, it started a corporate training division. Also in the 1970s, the company started sponsoring conferences and industry meets, and also expanded outside the US in the 1970s by opening an office in London.[5]

In 1982, Frost & Sullivan was publicly traded, and had annual revenues of $9.1 million. By 1987, the revenues had grown to around $17.5 million, with $290,000 in net earnings. Theodore Cross acquired 53% of the company's stock in the mid-1980s.[5] In January 1988, the company was merged with a subsidiary of FAS Acquisition Co., a company formed by Theodore Cross and Warburg Pincus Capital, making it a private firm once again.[6] In 1993, the company was acquired by David Frigstad.

The company expanded into Asia in the 1990s and opened offices in China, Japan, India and Singapore. In 1997, it entered into a joint venture with M.A.I.D. (later acquired by Dialog) for electronic distribution of its material.

In 2001, it acquired Technical Insights. The same year, Frost & Sullivan lost its New York sales office in the September 11 attacks.[7] The following recession forced the company to lay off 10% of its 700-strong staff, before it made a recovery.[5] In 2002, it further expanded its alliance with Dialog.[8]

Conflicts of interest[edit]

Frost & Sullivan participates in an equity research service scheme. The scheme provides equity research for a company who funds the research. The researched company is permitted to correct the report before the report is published.[9] Frost & Sullivan published a paper about the benefits of the scheme in the European Scientific Journal,[10] a predatory journal.[11] Researchers and asset managers see an inherent conflict of interest in research sponsored by the company being researched.[12]

Frost & Sullivan issues industry awards based on research using a proprietary methodology, which is sometimes based on a single article produced by the receiver of the award. Organizations which receive a Frost & Sullivan award must pay a fee to communicate the outcome to the public.[13][14][15][16] This conflict of interest is similar to that of a vanity award.


  1. ^ "Frost & Sullivan, Inc". Bloomberg Businessweek. Retrieved 2011-11-17.
  2. ^ "Our Offices". Frost & Sullivan. Frost & Sullivan. Retrieved 14 September 2016.
  3. ^ "Rest in Peace Fellow Yalie". Yale Club of Nevada. Retrieved 18 September 2018.
  4. ^ Frost & Sullivan - Starting - Lore A. Frost, Founder on YouTube 14 April, 2017
  5. ^ a b c d Thomas Derdak; Tina Grant, eds. (2003). International Directory of Company Histories. 53. St. James Press. p. 142–146. ISBN 978-1-55862-483-2.
  6. ^ "Company Briefs". The New York Times. 1987-11-23. Retrieved 2011-11-17.
  7. ^ "Frost & Sullivan lost office in NYC attack". San Antonio Business Journal. 2001-09-17. Retrieved 2011-11-17.
  8. ^ "Dialog Expands Alliance with Frost & Sullivan". Information Today. 2002-05-01. Retrieved 2011-11-17.
  9. ^ Equity Research Service SchemeGeneral Terms and Conditions (PDF), Tel Aviv Stock Exchange, archived from the original (PDF) on December 10, 2019
  10. ^ Tiran Rothman (March 2019). "The Equity Research Program's Effect on Technology Investors: The Tel-Aviv Stock Exchange Case Study". European Scientific Journal. 15 (7). doi:10.19044/esj.2019.v15n7p121.
  11. ^ Stefan Eriksson (May 2, 2018), Where to publish and not to publish in bioethics – the 2018 list, archived from the original on July 31, 2019
  12. ^ Justina Lee (September 28, 2018), This Stock Research Is Paid For By the Company. Do You Trust It?, Bloomberg, archived from the original on December 10, 2019 Alt URL
  13. ^ John Honovich (June 20, 2019), Briefcam Buys Frost Award, I can confirm that, at least in my own case, the research consisted of public domain material obtained from a single article written by ourselves.
  14. ^ Sean Moolman (August 18, 2017), Frost & Sullivan Awards: Recognition of Excellence or Cargo Cult?, The disillusionment culminated in the actual awards banquet held in honour of the recipients. Still being under the impression that the actual award is handed out even if the ‘copyright’ has not been paid for, I attended this event. As it turns out, only ‘paid’ awards are handed out (or, as Frost & Sullivan staff members prefer to call them, “licensed” awards).
  15. ^ Research Methodology, Best Practices Award, Frost & Sullivan, archived from the original on December 16, 2019, Upon licensing, company is able to share Award news with stakeholders and customers
  16. ^ Anette Schwenzer (August 7, 2006), Promega to refuse Frost and Sullivan Award, archived from the original on January 10, 2014, retrieved August 24, 2020, We clearly regard the fact that the publication of obtaining a prize is associated with costs for the prize-winner as ethically very questionable