Very interesting Rahkeem. I like your analysis of their cost structure and its scalability. Another point to consider is that other big tech companies, like Facebook, own their data centers instead of leasing them which I think would be viewed as CAPEX instead of operating costs. Do you know if this is the case of their partnership with Equinix? If so, I wonder how the partnership will change as LinkedIn grows and the upside of owning the IT structure becomes bigger.
This is my favorite post Nate, thank you!
Palantir is clearly positioning itself as a data analytic company on the website, which says “The first important thing to note is that we don’t actually do the analysis ourselves. We don’t devise winning trading strategies and we don’t catch terrorists. We write software that enables other people to pull off these feats”. I can see why they might want to enforce they don’t do the actual work on their sensitive government contracts for legal and ethical reasons, however I wonder how they are viewing this positioning on the private sector. Traditionally big consulting firms have gone beyond the data analytic and helped management on the decision making process/implementation planning. Palantir’s positioning might be leaving money on the table by not targeting these steps and I wonder why they are doing this. Is it temporary, because they are still refining their products/service model, or are there skills they feel they cannot replicate?
This is very interesting. To be honest I didn’t know Pixar had a significantly different positioning to other movie producers, but I did love most of their movies. The different areas you described reminded me a lot the Design Thinking process we learned in the IDEO case, with teams brainstorming and converging during the day and then use the Incubator Team, Shared Dailies and the Creative Brain Trust to validate and/or generate new ideas. I wonder whether they do something similar with the target audience or if this limited to employees within the company.