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Palantir Pricelist (page 27) [pdf]

gsaadvantage.gov

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Re: Palantir Pricelist (page 27) [pdf]

#21
post #7

For folks who've never seen one of these. 132-33 - Price for a Palantir server, priced per core. $141k per core. Includes 1 year of "maintenance" (support and software upgrades). 132-34 - This is the maintenance for second year on. $28k per core. How many users can a core support? I dunno. But let's say you can serve 50 people off of a 4-core system (you can redo the math for the number of users). You initial purchas…

The question I am asking is, do they really have the demand to make $1.5million a customer pay (or look like one day it could pay) for their expenses?

My guess is your estimates are really conservative.

Re: Palantir Pricelist (page 27) [pdf]

#22
132-51 CONS CONUS FSR Support hourly rate. CONUS rates will be billed for Services performed outside the continental U.S. unless in a warzone. Normal business hours are defined as an 8-hour work day (rate is 15% more outside of normal business hours). $ 146.60

132-51 OCONS OCONUS FSR Support hourly rate. OCONUS rates will be billed for Services performed in a warzone. Normal business hours are defined as a 12-hour work day (rate is 15% more outside of normal business hours). $ 195.47

Re: Palantir Pricelist (page 27) [pdf]

#24
post #7

For folks who've never seen one of these. 132-33 - Price for a Palantir server, priced per core. $141k per core. Includes 1 year of "maintenance" (support and software upgrades). 132-34 - This is the maintenance for second year on. $28k per core. How many users can a core support? I dunno. But let's say you can serve 50 people off of a 4-core system (you can redo the math for the number of users). You initial purchas…

Not that out of line for what much other enterprise software costs. A Bloomberg terminal runs about $24k/user/year: http://qz.com/84961/this-is-how-much-a-bloomberg-terminal-co... When I was doing enterprise financial software it wasn't uncommon for contracts to run in the millions per year.

Yeah it kind of depends how you look at it. Is it specialty software that provides some critical function they can't get elsewhere? Or is it Microsoft Office, everybody gets it and it should really be like $150/seat.

I should have also added to my original post, this is their GSA schedule. For these specific line-items, the government considers this the "prenegotiated lowest price". This simplifies purchasing. So if somebody in the government wants buy another core (item 132-33) they just ring up Palantir or their GSA schedule VAR (reseller) and ask for a 132-33 volume:1 and they know that it'll cost $141k and be good for 1 year of O&M.

The downside of being on the GSA schedule is that it means that there are limits on your ability to change prices year to year to reflect a change in business environment. Say next year you want to drop the price by 50%. That's not allowed, since it would basically mean that you weren't selling your software at the lowest possible prenegotiated price. Similarly if you want to increase it, you're limited in that as well. I think the +- variance can't exceed 10% in a single 12 month period, but I might be wrong. The other downside is that this basically provides your prices in public so your competitors can see what you charge, which can be critical information in contract bids.

There's always a loophole. For example, convince your customer to not buy off of the GSA and sell them a "package" at some discount off of GSA. That "package" counts as a different SKU and the GSA doesn't apply. So for example, you could make a Palantir "starter kit" composed of

   2 core license (normally $282k)
   1 extra year of O&M maintenance for both cores (normally $56k)
   500 hours of Ninja Services @ $150/hr (normally $98k)
   500 hours of CONUS FSR Service @ $120/hr (normally $73k)
all for the grand total of $350k or some such, instead of the normal price of $510k. A $160k discount.

Any government purchaser would fall over themselves to try to make this happen since it's a >30% discount off of the normal GSA schedule prices (which they can refer to and are governed by various rules). This looks fantastic on their yearly performance eval "-saved government $160k on purchase of Palantir package deal"

This is the crack model. When the O&M runs out in two years and they come asking for more, well, there's no deal anymore, and the GSA schedule prices on O&M and people have gone up 20% in that time.

edit keep in mind that this company has raised almost a billion dollars and is valued at something like $9 billion dollars.

Re: Palantir Pricelist (page 27) [pdf]

#25
post #22

132-51 CONS CONUS FSR Support hourly rate. CONUS rates will be billed for Services performed outside the continental U.S. unless in a warzone. Normal business hours are defined as an 8-hour work day (rate is 15% more outside of normal business hours). $ 146.60 132-51 OCONS OCONUS FSR Support hourly rate. OCONUS rates will be billed for Services performed in a warzone. Normal business hours are defined as a 12-hour wo…

I'm actually surprised how cheap their OCONUS warzone rates are. Many contractors will pay hazardous bonuses, time in theater bonuses and living condition bonuses on top of the CONUS base pay. Added up it can far exceed this kind of rate.

But this is probably helpful for people getting into consulting to see what hourly rates are for this kind of work. In my experience these rates are actually fairly cheap. I'm used to seeing $170-200 for most things billed to the government.

But I've also heard Palantir has fairly conservative pay caps, that might account for the low rates.

Re: Palantir Pricelist (page 27) [pdf]

#27

So what exactly do you get for those prices? Some data munging and analytics? Just hire a few data scientists and give them a map/reduce cluster. But this is the government so that might be more expensive than forking over the cash to Palantir.

It's less automated data analytics and more chart drawing and semantic knowledge base management tied to a federated search system.

Their principle competitor is http://www-03.ibm.com/software/products/en/analysts-notebook

They used to have a free trial you could run via java webstart on their website, but they've taken it down.

Here's a video https://www.youtube.com/watch?v=f86VKjFSMJE

It's big data in the sense that using google's search box is big data. But from my time using their demo a couple years ago, the actual tool is fairly small in focus. I don't even think the chart view can show more than a few hundred things.

Re: Palantir Pricelist (page 27) [pdf]

#28
post #26

How do they get such precise prices? If I was selling something for 140k, I would sell it for 140k. But they sell it for $141,015.42.

It's GSA price. My guess is the retail price is somewhat rounder, and after tax and other specific discounts it comes down to that.

Re: Palantir Pricelist (page 27) [pdf]

#29
post #14

Pretty affordable considering many other things on the GSA don't work once you buy them!

Luckily for Palantir whether or not it works is classified. I have my doubts. I'm sure it "works", but I'm also sure it's a giant waste of money and Americans are not safer because we're funneling millions of dollars to Palantir.

I messed around with the demo they used to have on their website. It seems to be very much an answer to the 9-11 failure to connect the dots problem.

Unify search, build semantic links.

It was a very manually intensive tool based on what I saw. Very little automation, more like those pictures and strings you see in crime shows on TV...but on a computer.

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