COMPANY PROFILE -Palantir Technologies
Business Sector :Information Technology, Analytics
Operating Geography :United States, North America, Global
About Palantir Technologies :
Palantir Technologies Inc. is a public American company that provides software platforms for various institutions. It was founded in 2003 and headquartered at Denver, Colorado. It specializes in big data analytics which are integrated, managed and securely saved on large scales. The collected data is layered with applications for human driven analysis. The company was founded by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp. The company initially had a difficult time finding investors, but gradually over time the company was known for its distinguished belief in artificial augmentation of data. This helped the company become noteworthy. The company today operates in two segments namely – governmental and commercial. It deals with clients like the CIA, US federal government, US allied governments abroad etc. as well as private companies like Airbus, Ferrari, etc.
The company aided the NHS (National Health Service, UK) with its COVID-19 efforts in 2020. Other countries have also used Palantir’s software to track the virus and found ways to contain it as well. The company has three basic products known as Palantir Gotham, Palantir Foundry and the most recent addition Palantir Apollo. Palantir Technologies’ software platforms are used across 40 industries located in more than 150 countries. The company has 2,439 full-time employees as of early 2021.
Palantir Technologies’ USP or unique selling proposition is its pioneering technology in the field of software development. Its interface permits people with varied technical skills to make optimum use of its software to collate and integrate its data in an organized manner. Timely access, safe storage and continual services across time zones catapulted the company to the market’s top preference.
Palantir Technologies Revenue :
$ 1.1 billion - FY ending, 31st December 2020 (y-o-y growth 47%)
$ 742.6 million - FY ending, 31st December 2019
Competitive Analysis of Palantir Technologies
The SWOT analysis for Palantir Technologies is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Their software is used in over 40 industries across the world with the healthy mix of government and commercial agents.
2. Substantial investment in research and development has given a competitive advantage.
| 1. Failed to declare a profit since inception in 2003.
2. Customer base concentrated so top 3 clients account for 25% of revenue.
3. A history of burning through operating cash very quickly.
4. Owners criticized for hoarding company control even after going public.
|
Opportunities | Threats |
1. Increasing trend of businesses exploring or implementing Artificial Intelligence.
2. Partnership with Amazon Web Services (AWS) will increase list of clients.
3. Investment in Western Innovation likely to lead to major gains.
4. New deal with Rio Tinto will considerably expand influence in the mining industry.
| 1. Palantir faces substantial controversy over privacy abuse claims.
2. Covid-19 continues to have a negative effect on operations.
|
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Detailed SWOT Analysis of Palantir Technologies
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Increasing trend of businesses exploring or implementing Artificial Intelligence: An IBM sponsored report revealed that 75% of businesses surveyed were exploring or considering implementing Artificial Intelligence in their business operations. 37% of the businesses said limited AI expertise was the main barrier in AI usage while 31% said increasing data complexities was barring them from adopting AI technology. Palantir specializes in data analytics and AI software. In February 2021, it announced a partnership with IBM. It consists of IBM's hybrid cloud data platform designed to deliver AI for business, with Palantir's next generation operations platform for building applications. The new product, Palantir for IBM Cloud Pak for Data, was scheduled for general availability in March of 2021.
Together they expect to serve businesses in a wide variety of sectors such as retail, financial services, healthcare and telecommunications. They want to push for the adoption of responsible and ethical AI while tackling any data analytics problems cropping up as a result.
2. Partnership with Amazon Web Services (AWS) will increase list of clients: Enterprise Resource Planning (ERP) is something that more businesses have started to invest in. Palantir has developed the ERP Suite a program optimized to run on Amazon Web Services (AWS) that enables rapid integration and analysis of data within the ERP landscape. This service will be available to all businesses on the AWS platform. The ERP Suite uses a data connector from Palantir Foundry and provides help with supply chain optimization, data discovery, democratize workflow creation and so on. This service has already been used by BP and LANXESS. BP was able to unlock approximately $50 million in working capital within two weeks of installing the ERP Suite. This development by Palantir and its collaboration with AWS is likely to see a high degree of demand owing to the ERP investment trend and AWS wide customer base.
The remaining section under "Opportunity"is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The SWOT analysis for Palantir Technologies is presented below in a matrix followed by the detailed analysis report:
Political | Economical |
1. Concerns over US Government not increasing defense expenditure by a substantial amount.
2. Increase in corporate taxes likely under Biden Government.
3. European government increase usage of US based data analytics firms.
| 1. Global Big Data market expected to grow to USD 229.4 billion by 2025 with North America leading the growth.
2. Payments in Bitcoin could go either way due to the volatility of the currency.
3. Investors hesitant to invest in potentially overvalued stocks.
|
Social | Technological |
1. Public holds an increasing level of distrust for companies working with governments globally. | 1. Increasing number of companies employing Artificial Intelligence to aid operations. |
Legal | Environmental |
1. Lawmakers raising concerns over the company’s privacy abuse allegations. | 1. Increasing focus on data integration to achieve net zero targets. |
On purchase the Palantir Technologies SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Palantir Technologies
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Increasing focus on data integration to achieve net zero targets: In recent years, businesses across sectors have set net zero targets i.e., achieving carbon neutrality. While these businesses have set goals and methods to achieve them, they have recently faced criticism for founding their plans only on carbon calculators that mis-identify the source of emissions and make it impossible to track them. Palantir believes net zero is a data integration problem i.e., failure to use the carbon data to make decisions at an individual level. Palantir Foundry is used to build a carbon-focused common operating picture that allows each part of an organization to collaborate on a net zero goal.
In January 2021, BP (a multinational oil company) announced it would be expanding its usage of Palantir Foundry’s data processing software to optimize its wind farms, electric charging networks and solar energy processing units.
Major Competitors :
- Splunk
- Tyler Technologies
- Verint
- Mu Sigma
- Cognizant
Major Brands :
- Palantir Gotham
- Palantir Foundry
- Palantir Metropolis
On purchase the Palantir Technologies SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Palantir Technologies SWOT & PESTLE Analysis Report
1. ANNUAL REPORT - fiscal year ended December 31, 2020 - http://d18rn0p25nwr6d.cloudfront.net/CIK-0001321655/97b89af1-0ad9-4daf-a411-6ca576744e7e.pdf
2. Palantir Technologies Stock Could Fall 17% - https://www.forbes.com/sites/petercohan/2021/04/11/palantir-technologies-stock-could-fall-17/?sh=6a6f6966857c
3. Palantir goes public but founders will have control for life - https://www.ft.com/content/27eddb59-1770-4ad8-a07f-6a940e20e00c
4. IBM and Palantir Partner to Help Businesses Easily Deploy Powerful and Open AI Applications; Unlock Valuable Data Across Hybrid Cloud Environments - https://investors.palantir.com/news-details/2021/IBM-and-Palantir-Partner-to-Help-Businesses-Easily-Deploy-Powerful-and-Open-AI-Applications-Unlock-Valuable-Data-Across-Hybrid-Cloud-Environments
5. Air taxi maker Lilium will rely on data software from Palantir - https://evtol.com/news/air-taxi-maker-lilium-palantir-data-software/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Palantir Technologies SWOT and PESTLE Analysis has been conducted by Medha Sinha and reviewed by senior analysts from Barakaat Consulting.
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