The problem with Palantir is the following: Three letter agencies are paying and will continue to pay for Palantir consulting and products. However Palantir has been unable to fully productize their solution (it is still pretty much consulting). Thus they have hard time convincing Fortune 500 companies to pay due to the costs and depending too much on human interaction.
> unable to fully productize their solution In my experience with this type of problem, it happens due to a failure of vision and leadership. The software company focuses a vast majority of resources on POCs and "consulting" revenue (really, rent-a-coder revenues) and these "consultants" end up failing as product innovators (i.e. they contribute practically nothing to the productization or even harnessing of institut…
Wow, that's a good summary. It's a trap that companies fall into and can never get out of:
1. Company has Product X and a bunch of smart engineers excitedly working on it.
2. The sales process ensues. No customers actually want Product X, but a few whales say "We don't want that, but you have smart people, we will pay you for this sorta-related ABC custom solution for us!"
3. Company tries to stuff ABC into Product X. They think they are improving their product AND getting the customer to pay for all the NRE! Woohoo! But in reality they've just turned into a contract engineering company and don't know it.
4. Steps 2 and 3 repeat until Product X is a franken-product that has so many features in it, nobody knows what it is supposed to do, customers still don't want it, and the engineers eventually realized that they are no longer working on the product they were so excited about.