Can Palantir's Federal Advisory Board Grow It's Government Business?
Palantir's governmental business grew 47% YOY in 2021 compared to 2020, but the number of new government clients stayed flat at 90.
When I saw this news last week, I immediately realized the company is trying to put them self in a strategetic position in regards to landing more government deals.
From their press release,
This board reaffirms Palantir’s commitment to the US Government and puts first class advisors at the intersection of Palantir and its government customers. This group of experts have first-hand experience facing America’s most urgent threats. As pioneers and innovators, they know that the institutions charged with protecting the United States can no longer do so adequately without the kind of readily deployable emerging technology that companies like Palantir offer.
I began asking myself what was the point of creating this board - how could it actually help Palantir's business?
With a new board comes new responsibilities, new people you have to pay, and new perspectives you have to care about in order for the business to move forward. If anything, it should slow things down.
However, there are two main benefits I see to this board: guidance on the government business in terms of product and go to market strategy & the ability to actually land more deals.
Members of The Board
First, take a look at the members of the board:
The Honorable Christine H. Fox, Former Acting Deputy Secretary of Defense, and Former Assistant Director, Policy and Analysis, Johns Hopkins University Applied Physics Laboratory
General Carter F. Ham, USA (Retired), Former Commander, United States Africa Command, and Former President and CEO of the Association of the United States Army
The Honorable Deborah Lee James, Former Secretary of the United States Air Force
Admiral William H. McRaven, USN (Retired), Former Commander, United States Special Operations Command, and Former Chancellor of the University of Texas
Vice Admiral Peter V. Neffenger, USCG (Retired), Former Vice Commandant of the United States Coast Guard, and Former TSA Administrator, United States Department of Homeland Security
This is an all-star cast of decorated individuals who understand the government inside and out. When Palantir is creating a new product or trying to have a strategetic go to market angle for their Gotham platform, these people will be priceless in terms of the consultations they can provide to advance the efficiencies of the product.
Second, I do believe these board members will help Palantir land more deals.
If I'm a governmental agency and I have to pick between Palantir and another company, the federal advisory board is not going to be the tiebreaker, but it definitely will have an influence.
If you want the best product and service, it would make sense to go with the company that has the strategetic vision of veterans who have served in the highest levels of the US government. It doesn't mean they always will, but it adds layers to Palantir's ability to close deals.
And that's how I really see this board. It's another tool in the tool box for Palantir to close deals because they now have a board that is interconnected between the company and the government. The resources the people on the board can provide should be able to advance Palantir's products from a strategy perspective and from a closing perspective.
“From the outset, Palantir has built software to solve the most critical problems facing the United States and its allies abroad,” said Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc. “We invited these national security leaders to join our first government advisory board because of the exceptional contributions they have made to this country in their years of public service, as well as the expertise and unwavering integrity they have brought to addressing the most significant national security challenges we collectively face.”
Time will tell, but this federal advisory board is looking like it can set a strong foundation for more government growth.