The Six Five team discusses Oracle & Palantir Foundry & AI Platform.
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Transcript:
Patrick Moorhead: Yeah, so two very interesting companies. You have Oracle that is growing like crazy as an IaaS provider, complimenting their SaaS and PaaS capabilities. Oracle has deals with Microsoft, they have deals with OpenAI. I mean it’s crazy how competitive that they are on IaaS with this Gen 2 OCI and then doubling down on all of the GPUs. And then you have Palantir. It’s interesting, Palantir formed in 2003. Peter Thiel founded and created and it really specializes in big data analytics for big defense, big government and also commercial interests out there. And they have three main product lines. They have Gotham, which is used by defense and intelligence agencies. They have Foundry, which is all about for commercial enterprises. And then Apollo, which is essentially one step underneath that that is managing the CI/CD pipeline for these companies. And it’s funny, you really had to look at the press release to see what was going on here.
Hey, we’re certifying Palantir’s platforms on OCI. Palantir is moving Foundry workloads to Oracle to OCI. And my question, everybody is from where? Nobody wants to say where Palantir was doing this before, but this looks like an absolute net add for OCI and a net lose for another IaaS provider or that they were doing it at a colo or something like that. The other thing we found, and this makes sense with Gotham, think defense and intelligence agencies, that application and AI platform is distributed across all Oracle cloud regions, dedicated regions, Alloy, Oracle, government, Oracle Roving Edge, pretty much everything, air-gapped for defense and intelligence implementation. And this just seems to me so classic Oracle and right in their sweet spot. So to me the TLDR is another big IaaS provider, another big IaaS win, and then a distribution of applications, in this case Foundry and Gotham available to Oracle customers.
Daniel Newman: Yeah, I’m going to hit this one quickly, Pat, because I think you made some good points. I don’t think there’s a ton of meat on this bone, but what is the meat on the bone here is there is such a symbiotic relationship between one of the rising stars of being an intelligence and data platform to government, to top secret, to your highest security agencies and clearances being Palantir and of course Oracle, which is basically the database that’s run every government entity on the planet. So the go-to-market motion here makes a ton of sense. It’s so logical that this is a build on, build up. And of course Oracle, while they are building AI capabilities and databases, and obviously they are not building out as expansive of an infrastructure or a software platform as some of the competitors.
So Oracle’s approach using partnering and best of breed to be able to corner a market like the intelligence market, the government defense market, so successfully makes sense. I mean, Pat, there’s an argument that at least within most sovereign and government that this is going to become a de facto standard. And I don’t know who else is going to be able to crack this from both a clearance, a certification and an already an existing platform within these different agency models, so –
Patrick Moorhead: Yeah, I looked across AWS, Google and Azure and all three of those companies have certain alignments. Google is more about commercial applications that you can run out of their marketplace. This was the most like, hey, defense, air gapped, intelligence. Just in your face and proud.
Daniel Newman: And I mean, look, that’s a big market. It’s a stable and sturdy market. Remember there’s a company that has 74% more predictable revenue at any given time with a big cloud growth, big infrastructure growth.
Patrick Moorhead: Yeah. I said this gosh, two, three years ago. They have the most straightforward private cloud and sovereign cloud offering out of anybody. It’s just straightforward. Their on-prem cloud as essentially, you take a copy of what’s in the public cloud and you paste it on the customer’s premises or colo and you put a chain link fence around it and Oracle manages it for you. And then Sovereign Cloud is a different building in a different… There’s no, oh, oh, wait a second, wait a second. And I think from a market timing, Oracle got a jump on Sovereign over everybody.
Daniel Newman: They did. It’s sticky. And this is a good partnership. And by the way, Pat, I don’t know if you know this, but Palantir quietly saw its market cap exceed Snowflake.
Patrick Moorhead: Interesting. And it’s crazy that Snowflake what formed in, I don’t know, 2020 or something, and Palantir’s 2003.
Daniel Newman: Yeah, they’ve been at it a long time, but nobody has really seen them as a big, fast riser. They’ve been big, fast riser and their growth is much faster than other software companies right now. And their logos have been really significant and the growth of companies that are running its platform. So it’s a good win, good partnership.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
