What service do European Analyst Firms bring to the equation. Can they really offer insights on IT that aren't available elsewhere for free?

Perhaps, perhaps not. In general terms, they might provide an overview of a particular market that can't be seen by individual companies (because they're too engrossed in what they're actually doing to see 'the big picture'). As to whether they can specifically advise you about how to run your company, I have my doubts.
Alex