Is Palantir Foundry Worth It?

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Palantir recently commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Foundry. The purpose of this article is to summarize the Forrester report below. This gives readers a framework to evaluate the potential financial impact of Foundry on their organizations.

Before using Foundry, organizations used a mix of homegrown and legacy-licensed solutions for their data and analytics needs. However, this environment yielded limited success: They have complex data to manage, understand, or gain meaningful and actionable insights. These limitations resulted in high costs, missed revenue opportunities, and employee inefficiencies.

With Palantir Foundry, organizations can cut costs, grow revenue, save employee time, and make better data-driven business decisions. The key findings of the Forrester report are as follows:

Key Findings

• Cost savings from better supply chain and inventory management by 30%

  Empowered by Foundry’s abilities to integrate and visualize data across the organization, generate insights and what-if analyses, and provide optimal and actionable recommendations.

• Cost savings from improved procurement process by 30%

  Organizations use Foundry to cut costs related to their high-priority procurement cycles, enabled by Foundry’s holistic examination of all the relevant data and ability to provide optimization options, among other features.

• Decommissioned legacy systems by 100% within three years

  Foundry allows organizations to decommission their legacy data and analytics systems, including a mix of licensed and homegrown solutions. Fifty percent of the legacy environment is decommissioned in Year 1, and 100% by Year 3.

Forresters representative interviews and financial analysis found that a composite organization experiences benefits of more than $345 million over three years versus costs of over $83.2 million, adding up to a net present value (NPV) of more than $262 million and an ROI of 315%

Before using Foundry, organizations noted how they struggled with these common challenges:

• Time was spent managing data rather than analyzing and gaining insight from it

• Lacked a holistic understanding of data

• Ineffectiveness in using data to make optimal decisions

• Need for a comprehensive solution that can tackle significant and diverse business challenges

Foundry served as a comprehensive data and analytics platform for interviewees’ organizations. Organizations were thus able to decommission various legacy licensed and homegrown data and analytics solutions. These legacy systems are decommissioned over time. In Year 1, 50% are decommissioned; in Year 2, 75% are decommissioned; in Year 3, 100% are decommissioned. Forrester’s estimated savings by switching to Foundry to eliminate legacy systems is a 3-year PV of ~$24M alone.

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