Recently we all saw Alex Karp announce an increase in Palantir’s TAM from a little more than $100 billion to “north of $900 billion”. Obviously that’s as impressive as it can get, as the $119b DPO TAM was roughly 2 years ago.
Gotham has been the crown jewel for as long as Palantir has existed. And Foundry hasn’t had such a growth in clients as to justify an 8x increase in their market, right? In those 2 years we’ve seen a change from 139 total customers to 337 (even if DataBase has a considerable amount more)… So what changed? Why the 8x increase in TAM?
Those who argue instability in the world is the big reason [especially in Ukraine and the US - China relations that will probably develop into another war in Taiwan] are missing the whole picture. War doesn’t increase customers, but they can turn into a frenzy of contracts to guarantee Western security and our interests. No one should bear this into consideration when thinking of a long term revenue stream. That’s the job Foundry needs to deliver. Let me explain a part of my reasoning here.
Checking for links every day for almost 1 year has taught me Palantir has a way of getting into almost every aspect of an organization that seriously wants to respect data and get insights from it. I’ve dedicated articles to Foundry’s stickiness and how it works, along with some examples. And I think that’s a big fat part of the reason Palantir is increasing their TAM.
One example I want to talk about is IBM. You all remember HSBC, RBC and Fujitsu as companies with more links than when they started using Foundry, a primary example of stickiness inside the institutions using Palantir’s software. Well, now IBM is the new example.
A new variation has appeared in Foundry and that is “IBM-SERVICES”. It didn’t exist a week ago, and as I said before, new links equal new capabilities the companies use within Foundry and that means more revenue for Palantir (one might hope!).
Also, (my little plug here) you can see every new codename and variation and my own insights using all the data I store in DataBase by subscribing to it!
And finally, let’s add one more thing on this topic. And that is if there are more capabilities companies are using within Foundry… Then the more functions it has to offer. It means that in 2 years Foundry is more powerful than ever, with new functions that were not there before. The silent but consistent way of Palantir… Not flashy announcements but taking care of customers and innovating to deliver the needs of their tomorrow.
Relentless consistency, I’d say is the best phrase when talking about Palantir and what Foundry offers to their clients..
Love the link with links! Great job 👏