City drew 2-2 at West Ham during Saturday's late Premier League kick-off and Pellegrini's changes late on suggested he was happy to take a point.
The Hammers led on both occasions and had also beaten Manchester City at the Etihad Stadium earlier this season.
That may have prompted Pellegrini into a more defensive approach - something Collison believes is a sign of West Ham's progress.
COLLISON: "Is Pellegrini happy with a point? If so, that just shows how far West Ham have come."— West Ham United FC (@whufc_official) January 23, 2016
The former West Ham midfielder also reflected on the 2-2 draw at full-time, suggesting it was a fair result for both the Hammers and Manchester City.
COLLISON: "Cracking game. Both teams wanted to win. Two real quality sides. At the end of the day, the draw was a fair result."— West Ham United FC (@whufc_official) January 23, 2016
The point leaves City three behind current Premier League leaders Leicester City, leaving Arsenal with the chance to once again leapfrog them in the standings.
Tottenham are now just two points behind Manchester City, while the draw leaves West Ham sixth, two points above Liverpool and one behind Manchester United.