Palantir (NYSE: PLTR) and IBM (NYSE: IBM) announced a major partnership today. With the agreement, IBM will offer Palantir’s technologies as part of its cloud data services, which could dramatically increase the sales reach of the new public data analytics business.
The Palantir share jumped 10% today and closed up 5.9%. IBM’s stock increases from the announcement were more subdued, with Big Blue’s share price rising 1.5%.
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IBM launches new product offering using Palantir’s Foundry analytics platform to complement its IBM Cloud Pack for Data, Watson and Red Hat OpenShift services. Big Blue plans to reinvent itself after acquiring Red Hat, and IBM senior vice president of software, cloud and data Rob Thomas believes partnerships like the one he struck with Palantir will play a driving force for IBM’s cloud and artificial intelligence. business. However, it is not surprising that the market is more excited about what the deal could possibly mean for Palantir.
Lizette Chapman, Bloomberg, writes today about the announcement of the partnership and describes the deal as giving Palantir access to a sales team of more than 2,500 people, a dramatic jump from its current sales force of 30. Palantir was primarily focused on landing of large companies, but it has also experimented with its product offerings and price levels to reach a wider audience. By working with IBM, the company can reach a wide base of potential customers who can use its data software services.