The Palantir business model was born from the necessity to combat modern-day terrorism, without compromising citizens’ fundamental rights. The company was designed to support United States intelligence services in the analyses of data, preventing possible threats, although, during recent years, it started to offer its services to private companies.
Nowadays, the company has four consolidated products.
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The main software of the company is focused on providing analytic services to the government security system, such as law enforcement departments, detecting activities that could represent possible threats to society. The focus is on stopping these activities in their origin and avoiding their development.
Created for private enterprises, this software is especially used by finance corporations, so that they can detect employee acts and words that could lead to misbehavior and potential crimes against its institution, such as robbery and conspiracy, by checking their emails, GPS, and browsing histories.
It also helps those clients to build graphics about their sales and performance, in order to facilitate the decision-making concerning their business in real-time.
Software that specializes in building data pipelines, so the clients can run a massive volume of information without the necessity of creating line codes. Within days, they can process an amount of information that would usually take weeks.
For those companies that need to combine the Foundry system with applications of Gotham, Apollo is the tool that links both ends, allowing the client to control in real-time these systems in the same frame.
Founded in 2004 by 5 entrepreneurs, including Peter Thiel, co-founder of PayPal, with the injection of US$ 30 million from Thiel personal finances and another US$ 2 million from the Central Intelligence Agency (CIA), with the purpose of creating a solution to stop internal and external threats against the US, including those perpetrated by terrorist groups and rogue countries.
Thiel considered the mind behind all the projects, possess a mix of libertarian and liberal visions, with a focus on individualism over community, so, he devised a program that would help the government fulfill its objectives, protecting the community and managing resources without compromising its citizens’ rights.
By adopting a proactive stance that detects hazardous behaviors in their origin and acts to suppress them, they avoid the necessity of adopting arbitrary methods to face these risks and, consequently, preserve individual rights.
Initially, the firm was confined to offering services exclusively to the CIA and minor U.S. law enforcement agencies, but, with their high rate of success in detecting threats, it led them to collaborate with other major agencies, such as the FBI and NSA, and also with the intelligence department of the U.S. Navy and Air Force.
This expansion also represented a major boost in its finances, with the increasing funding offered by the American government, and also by raising capital and providing its services to private companies. By the end of the year 2020, the company went public on the exchange market.
Palantir Technologies Inc. is still today owned by its founders, with Peter Thiel being the Chairperson and Alex Karp as the company’s CEO.
“We go where we’re needed most”
Palantir was designed to work together with governmental agencies, through a public founding process, and only recently it became dependent on private sources, therefore, public investment is still a big part of the firm’s income.
The Palantir business model depends on contracts to close deals, in which the duration, acquired services, and prices are stipulated. Since the company works with big data analysis, an ocean of delicate content passes through its channels, therefore, its contracts with clients contain non-disclosure clauses, and getting basic information about them is impossible.
What is known about Palantir’s finances is that they have a revenue of close to US$ 1 billion per year, with contracts that range from US$ 1 million to US$ 100 million. What is known about those deals is that Palantir offers its analytic programs, plus support and tech specialists, but each contract is unique because the company model adapts to its clients’ needs.
The U.S. Intelligence and Military sectors are the main customers of Palantir services, but they also provide its software to civil organizations, such as the Centers for Disease Control and Prevention (CDC) and the United Nations initiative World Food Program.
Their private clients are mostly made of banks and financial institutions, but also include great brands, such as Ferrari and Airbus, to gather data about the level of satisfaction of their consumers, and which points they can improve in their machines.
Let’s take a look at the Palantir Business Model Canvas below:
Palantir’s customer segments consist of:
Palantir’s value propositions consist of:
Also, it helps to detect sensitive points in a country or in the world, through demographic data, in order to solve crises like food shortages in a certain country or control vaccination in a precarious region of the planet, so that the civil authorities get to know the issue and develop the right answer to it.
Palantir’s channels consist of:
Palantir’s customer relationships consist of:
Palantir’s revenue streams consist of:
Palantir’s key resources consist of:
Palantir’s key activities consist of:
Palantir’s key partners consist of:
Palantir’s cost structure consists of:
Below, there is a detailed swot analysis of Palantir:
Palantir’s business model is certainly unique, with a rare mix of private and public investments, although the latter remains its principal source of revenue. What we know for sure is that every major company in the world works with data science, and plans their moves based on the information given by this kind of data analysis.
What we know for sure is that Palantir’s intentions to diversify its list of clients and offer its services to the private sector are certainly a smart move. It’s also worth mentioning that their initiative to acquire small labs and studios and some startups is another great idea.
They not only buy the physical structure but also the knowledge and know-how of their employees, not to mention the fact that they can also continue the development of ongoing projects without having to start it from the very beginning.
Considering this, Palantir has a bright future in this segment, being able to play a great role in the businesses future, but first, it needs to free itself of the pattern of being a quasi-government agency and also surpass the distrust that was caused around its business and their dealing of private data.
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