Why The Palantir Cloudflare Partnership Is A Big Deal
The Development of the Cloud
Palantir announced a partnership with a really interesting company, a company a lot of you guys probably know about which is Cloudflare.
Cloudflare is a global network built for the cloud that secures website APIs, internet applications, corporate networks, employees, and devices while enabling you to write and deploy code that runs on their Network Edge.
I use Cloudflare in my own startup. My startup is an audio based startup, which contains a lot of content and the way we load certain parts of that content is through Cloudflare. For example, people upload audio clips to our website as well as thumbnails for those clips, we host the audio component, the Audias, on S3 and AWS and the thumbnails on Cloudflare. Cloudflare lets us pull the thumbnails much quicker than if everything was stored within AWS and S3.
Many companies are migrating to follow similar models, rather than stay locked into specific pricing models to host everything on one server, mixing cloud providers might present a less expensive solution.
“Today's modern application stacks are a collection of many services running on different clouds, Legacy Cloud providers shackle customers with restrictive pricing models, making it untenable to use multiple Cloud vendors or switch providers.” Said Dane Knecht, SVP of Emerging Technology & Incubation and Cloudflare. “We're excited to work with Palantir to bring greater visibility to customers around their Cloud spend and Solutions on how to reduce it”
As organizations transition more of their workloads to the cloud, the complexity and cost of these workloads have increased. What's more, organizations often struggle to achieve granular visibility over their Cloud spend.
Cent By Cent
How much are you spending cent by cent In all these different areas of your business on all these different clouds?
A company like Netflix probably spends God knows how many hundreds of millions of dollars per year on AWS, because obviously a lot of people are streaming video and all that video is stored in the cloud.
For my Start-up Audia, we're spending two or three hundred dollars a month on AWS because we don't have as many users as Netflix.
“Our partnership with Cloudflare provides an avenue for Palantir Foundry to drive down multi-cloud costs, Palantir Apollo to reduce the burden on DevOps and improve customers’ gross margins, and Cloudflare to provide a modern cloud architecture that doesn't restrict customer choice and delivers a meaningful cost savings.” Sean Sankar COO of Palantir states, “Stitching together a patchwork of cloud contracts and evaluating them across teams, workflows, and internal stakeholders is fundamentally a data integration challenge.”
The entire goal of this partnership, the way I see it, is for Palantir Foundry to be implemented within Cloudflare in a way that allows clients that are using Cloudflare to manage their delivery network at the intersection of Foundry. Understanding all of the cost data and making sense of it. To figure out where their efficiencies and inefficiencies are and how those efficiencies might lead to better gross margins.
Additionally, Palantir Apollo, one of Palantir’s back-end infrastructure systems that allows you to send over-the-air updates simultaneously across entire organizations, is primed to be put to good use in this type of partnership. Dealing specifically with businesses that have fragmented cloud services is an ideal spot for Apollo
DevOps have to be able to implement updates over the cloud immediately. In order for that to be able to happen a lot of that has to be synchronous towards the cloud infrastructure you're using or something like Cloudflare.
But that costs a lot of money.
Especially when you're issuing a new update across multiple parts of the business in different sectors.
Apollo to optimize your updates and Foundry to be able to optimize the data that's being stored and understand the elements of your cloud costs. Companies that now are using Cloudflare have access to some of the most advanced tool sets to make sense of what's going on in your business.
The strategic partnership will provide organizations with the ability to quickly generate meaningful cost savings from their existing Cloud bills and transition to a more cost-efficient Cloud infrastructure for the long term.
It's one of those partnerships that's a B2B partnership that allows Palantir to work with varying Cloudflare clients. Clients that might be significantly smaller than Palantir’s traditional deal size.
By leveraging Cloudflare's workers platform and R2 storage solution, customers from the largest Enterprises to small businesses are further able to build, deploy and manage their workloads seamlessly at a global skill and with greater flexibility and cost efficiency.
A really interesting thing about this partnership is Cloudflare, which is a pretty well respected industry leader in the IT management software space, recognizing Palantir's operational workflows. Having this partnership in place just like pound chair's partnership with AWS and just like pound chair's partnership with GCP that was announced back in June it's good to have these people recognize Palantir as an industry leader because it gives Palantir as a growth company a lot more credibility.
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