>> Having read Gartners Magic Quadrants on Cloud, I really question Gartners competency on understanding
I think you can replace "Cloud" with whatever technology Gartner or most analysts write about.
These firms are little more than uninformed hype producers that fuel the enterprise software spend cycle through marketing (webinars, "research", tap-my-back-events and 3k€ "reports") that tell CIOs/CTOs what they should already know, by definition of their function: what technologies to consider for their business problems, why and how.
On the other hand, they provide a nice scapegoat when someone needs to offload responsibility, a bit like the "no one ever got fired for buying recommended by Gartner".
PS: wish I could find Zed Shaw's video on "calling bullshit" (or related), as it includes a nice anecdote on dealing with industry analysts.