ServiceNow Competition Against Palantir:
What does an Operating System actually mean within the context of data?
ServiceNow CEO On The Future Of Software:
Industry 4.0:
ServiceNow Competition Against Palantir:
ServiceNow is a leading provider of cloud-based solutions to automate IT operations.
Within a similar manner to Palantir, ServiceNow states how: “Our service includes a suite of applications built on our proprietary platform that automates workflow and integrates related business processes.”
Organizations deploy our service to create a single system of record for enterprise IT, to lower operational costs and to enhance efficiency. Additionally, our customers use our extensible platform to build custom applications for automating activities unique to their business requirements.
Within a similar manner to Palantir, ServiceNow seem to provide “time-to-value” within some regard. This means that, through certain software solutions, organisations can achieve productivity improvements and enhance overall efficiencies. However, unlike Palantir, ServiceNow does not deploy a holistic operating system. Instead, ServiceNow offers a suite of applications including, workflow automations, notifications, assignments, and integration of third party solutions.
Importantly, and to highlight a major weakness of Palantir’s invasive business solution, ServiceNow mentions how their platform can be deployed within a more modular light, therefore enabling companies to solve immediate business needs and issues. This is often a major criticism of Palantir, namely their inability to successfully modularise or breakdown their platform. Concerningly, CEO Alex Karp stated that this has led towards an inability to encapsulate all customers needing potential solutions.
Whilst it can be stated that Palantir and ServiceNow are not competing with Palantir within a direct manner, there is an indirect level of competition. This is because, similar to Snowflake & other individualistic products, ServiceNow is competing against Palantir within the scene of IT budgets scene.
Often, organisations within society are less inclined to adopt a holistic and sometimes invasive software solution. Perhaps it can be argued, that due to bureaucratic natures of organisations and the large cost association with Palantir Foundry, companies are likely to adopt less powerful, yet less invasive solutions when it comes to software.
What does an Operating System actually mean within the context of data?
When it comes to Palantir as an Operating System, this means that the company operates within all of the big data layer architecture principles. This is in comparison to companies such as Snowflake, in which operate within a sole layer – namely the data lake house or Wearhouse layer.
The graph below indicates the breakdown of each layer within the Palantir OS.
Within the scene of Big Data, there are 5 layers for the architecture of big data processing and analytics. This includes, data visualisation, data analysis, data collection and processing, and the ability to gain all structure and unstructured data formats. Palantir operates within each of these layers, in comparison to one individualistic layer. This reveals the holistic OS that is provided within the context of Palantir.
An OS is broken into 4 main areas by management.
1) Firstly, through Palantir software, one can “drag & drop” certain tools, features, & partnered applications onto the project. This can be done fluently, meaning that the tools, features & applications communicate & work in conjunction with each other. As well as Palantir having innate tools (data visualization, AI, ML, ontology) within their platform, one can also leverage these innate tools, & use them in conjunction with partnered features & tools in order to derive the most value.
2) Orchestrate & bind the IT landscape together. This means that, instead of replacing old data systems & tools within the organisation. Through Palantir, organisations can intertwine their own bespoke data systems & tools, in conjunction with more modern tools & applications – & overall use these in communication with each other.
3) Network effects refers to the low code, no code environment of Palantir OS. This enables anyone & everyone in the organisation to use the platform, create new applications & features, regardless of technical ability. Changes can be shared across the organisation, revealing how the product becomes more useful as more people use it.
4) Contextual data. Data is transformed into people, places, & things – which makes the data come to life.
ServiceNow CEO On The Future Of Software:
“We believe we are in a sustained demand environment. We believe our customers need us now more than ever. We don’t believe a price increase in the way to gain share and the increase of business results.”
We are clear that we deliver business impact for our customers. Customers are not buying software, these customers are buying business outcomes.
The CEO mentioned how, “companies are investing with a sense of urgency in technologies that get them to the right outcomes, fast. We’re now in a tech‑to‑compete world.”
Interestingly, ServiceNow exceeded high end guidance across all Q1 2022 metrics, leading to 41% growth Y/Y. Moreover, the company stated how we “delivered another outstanding performance that beat expectations across the board. We are in a sustained demand environment.”
Overall, this indicates towards the necessity for organisations to adopt software solutions that create time-to-value & productivity improvements.
- Industry 4.0:
The necessity for software solutions shows how paradigms within society are shifting and organisations need results now. This perhaps is a reason as to why Palantir is facing more indirect competition from other software providers. Whilst, it is fair to state that ServiceNow offer a less invasive and skilled product, still there is evidence to show that the market is positive in regards to their software offerings.
Within the past 10 years, there has been an unprecedented, and previously unpredictable move towards digitalisation. This trend is often referred to as the inception phases of industry 4.0 – or also known as the next industrial revolution.
Taking a glance at previous industrial revolutions:
- First revolution: emphasis on steam power, weaving and steel treatment. 1780 to 1890.
- Second revolution: emphasis on electricity, chemistry, combustion, engine usage and linear production. 1980 to 1990.
- Third revolution: focus on nano-technology, bio-technology, new materials, and recycling. 1990 – 2020.
Often, within the innovative software solutions – such as Palantir Foundry – there is an ability for exponential growth curves to occur.
Interestingly, modern example that demonstrates the non-linear progress is the field of human genome sequencing. The Human Genome project, aimed to determine and map the set of nucleotide base pairs that make us human DNA. As reported by NHGRI Genome Sequencing Program, the cost of sequencing DNA bases has fallen majorly (more than 700,000 fold) since the first sequencing project.
These are non-trivial innovations, that presented unprecedented and exponential spurts in efficiencies and disruption. Getting in early and identifying not just only the right waves of innovation, however also the correct companies, can lead to exceptional returns.
A link to the full report on Industry 4.0 can be found here: https://darntons.com/2022/04/09/introduction-to-innovative-investing/
