Palantir & Network Effects

Their most powerful tool may not be Foundry of Gotham, but rather the power of connections and the networks between clients.

Ever heard of Palantir’s stickiness? I bet you have. I’ve spoken about that here before. And that’s just one of the big drivers of value the company has, pushing their products to new limits. Not only because of their capabilities, but more importantly because they can scale and create value inside an already established client.

Imagine an auto company, or any airline. They decide to adopt Foundry and base their business on top of the platform, achieving the natural advantages it provides. Naturally, competitors and (especially) partners wonder and wander around the Data processing world of companies, looking for the same benefits but wanting to pay less. They will end up choosing Palantir, and not because they want to, but because they need to.

Luckily for them, teams at Palantir have every intention of retaining their clients, and they will take care of them. How? By establishing standardization/processing of language between datasets, so they don’t need to completely overhaul their already existing (and expensive) systems.

And, as our dear Codestrap mentioned yesterday, companies who want to buy another company are the primary beneficiaries, and so is the entire business resulting of the operation. This whole approach is not casual, but rather it is conceived as the main soul on which the company develops their platforms. That’s what is being done with Pipeline Builder. A win-win scenario.

The happy companies remain being Palantir customers, paying for access to Foundry, building entire industries on top of it, with SkyWise as the golden example. Palantir keeps pumping out new functions, making their software sticky and also making the companies crave (and pay) for these new features, relying more and more on us.

So, at last, these companies talk to their partners and distributors about the miracles this platform called Foundry does, while proudly sharing their employees have Foundry certificates on LinkedIn. Every new client turns into a Palantir ambassador without them knowing. And every new client added has the ability to add a few more, it’s the definition of exponential.

I think we can end this by saying it’s a symbiosis of the world’s most powerful commercial software, rock solid values, a results-driven mission and a customer satisfaction that acts as sales people. And I’m here to watch it all unfold!