Here is everything you need to know about the recent Microsoft Intelligent Data Platform launch.
What Is This New Platform?
Have Palantir & Microsoft Competed Before?
How Does This Compare To Snowflake?
Is This A Governmental product?
The bottom line is, this product is slightly thinner than Palantir, however does reveal how the competitive landscape within the enterprise software space is heating up more aggressively.
What Is This New Platform?
Microsoft are building a platform to aid the fragmentation between databases, analytics, and governance via the “intelligent data platform.” This is an effort to bring the company’s existing database, analytics and governance services closer together.
“This is about bringing all of our data products together into one fabric so you as developers can shift focus towards creativity instead of spending time on governance”, said CEO Satya Nadella. Interestingly, this calls into question the focus on interoperability of third party solutions, in which is common within the Palantir OS. Microsoft seem to solely want to integrate all of their products together into one fabric, in comparison to enabling interoperability of third party solutions, like Palantir.
Furthermore, the product enables a seamless data platform, in which can empower organizations to invest more time into creating value rather than integrating and managing their data estate.
The 3 main principles that this product is focused upon is, integration of:
- Databases
- Analytics
- Governance
“This is about bringing all of our data products together into one fabric so you as developers can shift focus towards creativity instead of spending time on governance”, said the CEO.
Have Palantir & Microsoft Competed Before?
Microsoft & Palantir have competed beforehand for the SkyWise contract. Whilst Microsoft had the original contract with Boeing, for a platform analytics software in order to empower data to create insights, Palantir 2 years later managed to replace Microsoft as the dominant OS system for Skywise.
However, it seems that Microsoft are now competing more directly with Palantir. The initiative is far thinner than Palantir, however does evidently overlap within some regard.
How Does This Compare To Snowflake?
Snowflake offers individualistic, one-off tools and custom solutions. Furthermore, all of Snowflakes products are used to fit a specific, small use case. This is in comparison to Palantir whom offer an operating system, with 400 different tools, features and custom applications within.
Palantir is focused on “time to value”. Snowflake is focused on “simplicity”. Time to value meaning, PLTR is focused on efficiencies & reducing cost & time. “Simplicity” meaning the focus on creating a single truth – reducing the complexities of unstructured & structured data.
Snowflake offer a range of different products: “only charging customers for the resources they use.” However, Palantir is focused on “becoming part of the institution we serve”. “PLTR does not sell features, tools, or one off custom applications. When it comes to working with data, those approaches generally work only briefly, if at all”
Snowflake is playing within the data layer area. SNOW benefits from the low barrier to entry: as their products are less invasive. Whereas PLTR is playing within the OS layer – in which their products become the foundation for the business. Palantirs’ products are often viewed as more invasive and holistic.
Overall, Snowflake is offering solutions that are much thinner, and are focused on simplicity. Palantir on the other hand offers a holistic OS that includes 400 different tools, features and custom applications within.
Similarly to Palantir, this new Microsoft initiative seems to compete with Palantir to an extent. Instead of offering an individualistic tool, like Snowflake, Microsoft are offering a whole suite of products in which are available under a single interface. However, whilst stating this, the new MSFT product is not as invasive as Palantir, and therefore can be described as slightly thinner.
Is This A Governmental Product?
Thus far, it seems that this product is mainly based for the commercial space. This is in comparison to Palantir whom have deep competitive moats within the Governmental area – specifically the US GOV.
Interestingly, Palantir seems to have some sort of dominance within the GOV sphere.
Piper Sandler says, “Palantir should continue to see growth in its U.S. government business as it broadens its footprint across agencies and as its largest customer (Defense) is expected to grow further”. The investment firm state how, Palantir has gained more traction with agencies beyond defence, such as VA and DOE, which will provide ongoing upside.
Importantly to note, Microsoft does have Governmental solutions already in place for other products. Perhaps it seems fair to state, within the future, this commercial initiative will follow into the Governmental space too.
Products Microsoft offers to the Government include:
- Microsoft Sentinel.
- Microsoft Defender for Cloud.
- Microsoft 365 Defender.
- Microsoft Defender for Endpoint.
- Microsoft Defender for Office 365.
- Microsoft Defender for Identity.
- Microsoft Defender for Cloud Apps.
- Microsoft Defender Vulnerability Management.
Overall, this shows the competitiveness within the enterprise software space. This new product by Microsoft is a viable Palantir competitor. IT budgets within organisations are tight, & often within software, it can be very hard to identify the utility of a platform. This has called into concern the future competitive outlook for companies such as Palantir.
Whilst stating this, the MSFT product is far thinner than Palantir Foundry, however within some regards the products do overlap.
