Palantir: Morphing into an SAP-Type Outfit: Intelware Is a Minor Component
February 23, 2026
Another dinobaby post. No AI unless it is an image. This dinobaby is not Grandma Moses, just Grandpa Arnold.
Palantir Technologies has been around a couple of decades. I wrote about the firm’s system in my book “CyberOSINT: Next Generation Information Access.” Like the other intelware vendors’ systems, Palantir used open source, home brew code, an interface twist (see illustration from one of the older versions), and moxie. Palantir used “forward deployed engineers” who would go to a prospect’s office, set up a system, and show the staff how to use the system. At the time, most of the Palantir bells and whistles were already in systems developed originally by i2 Ltd. I was a consultant to i2 Ltd, and my legal eagles told me long ago I should make that point.
A senior forward deployed engineer explains that the Palantir system is indeed a “seeing stone.” It can provide its licensees with unparalleled insight. Those in such presentations often believe that Palantir has the same magic that infuses “The Lord of the Rings.” Thanks, Qwen. Close enough.
In terms of the longevity of intelware companies, Palantir has kept on trucking. Many of the companies I profiled in CyberOSINT in 2015 have been acquired, merged, or folded up their tent and focused on selling ad agencies. The core functions of these systems included at that time:
- User point-and-click interfaces
- Some control over data added to a system by the user
- Relationship diagrams
- Easier cross tabulations
- Report generation tools.
In the intervening decade, the current crop of intelware systems have bolted on smart software. These functions are useful because the volume of data for an investigation or an analysis for intelligence purposes involves a lot of data.
What’s going on with Palantir Technologies now? The main developments are:
- Big visibility. Most people cannot name an intelware company, but quite a few know about Palantir or have some name recognition. Palantir has won the PR battle. Too bad Light House and Sixgill.
- Big contracts. Palantir is not in the $5,000 a month range. The size of the publicized contracts are big.
- Big capabilities. Palantir makes clear in its marketing that it has the biggest, best intelware system anywhere. (I am not sure I agree with that, but that’s not germane to this post.)
Why am I writing about Palantir on February 20, 2026? Answer: I read “DHS Awards Palantir up to $1B to Deploy AI and Data Analytics Platforms.” The number is big or seems big. There is that “up to” caveat. The article states:
The U.S. Department of Homeland Security has awarded Palantir Technologies Inc. a five-year blanket purchase to expand the department’s use of artificial intelligence and large-scale data analytics platforms across its agencies.
From my point of view, the most important factoid in the news story is this one:
The agreement, which is valued at up to $1 billion, allows multiple DHS agencies to acquire Palantir platforms without initiating separate competitive contracts for each deployment. The blanket purchasing agreement deal establishes pre-approved pricing and terms, with funding distributed through individual task orders over the five-year period rather than as a single upfront award.
As I interpret the passage, it seems that other intelware vendors may have a more difficult time selling or licensing their systems to DHS. Some of those systems are better than Palantir’s system, but that’s normal in the world of intelware. No one system does everything. Larger systems exhibit innovation friction. The bigger the outfit, the more difficult it becomes to integrate in a slick way the latest and greatest twist for law enforcement and intelligence professionals conducting investigations. That’s why larger intelware outfits acquire small, more fleet of foot start ups.
This is a screenshot of the right click wheel selector. The idea is that this right click method is more functional for an investigator. I believe the interface has been updated since I snagged this in 2006 or 2007 in a demo at a trade show. I assume the entire image is copyright protected, trademarked, and super proprietary. Anyway, it is definitely a Palantir “innovation.”
Several observations:
- The contract suggests that standardization makes it easier to train authorized users of a system like Palantir’s
- Personnel can move more easily from one unit of DHS to another without having to deal with different intelware products. (Some will find their way into specialized units anyway.)
- DHS has, in theory, one throat to choke if the system or the customized instances of Palantir’s software does not meet the specification for that implementation.
I won’t mention names, but there was a similar “let’s just pick one and go” approach a number of years ago. The company promised a range of specific capabilities, asserted flexibility, and described easier customization than other approaches. What happened? In this particular intelware instance, the multi year agree was on the rocks within nine months. The time required to train and develop the custom applications for the use cases converted intelware into a more inefficient deployment than SAP or similar “workflow” system. The costs of implementation soared as engineering change orders and supplemental specifications were developed and pushed forward. In a short time, money ran out and these fixes had to be integrated into the next fiscal year’s budget.
I did not work on this particular project. I was engaged in an equally large and even more visible project related to government-wide search and retrieval of digital information. I didn’t think about one agency. We were struggling with the entire airport van of agencies, departments, and related entities.
Nevertheless, we learned about the issues that a Swiss army knife poses when one or more of the tools doesn’t open or breaks upon use. I hope that the Palantir solution does not create a similar set of issues for DHS. I want to be optimistic. I know that descriptions like this are very appealing to government executives, and I quote from the news story:
DHS is expected to use Palantir’s platforms to support investigative case management, threat identification, logistics coordination and operational planning. The platforms apply machine learning models and rules-based analytics to information from enforcement databases, biometric systems, financial records, travel data and other sources to generate risk assessments, link analyses and operational dashboards.
Palantir’s system, if this paragraph is accurate, is no longer intelware. It is smart software doing what SAP-type systems do. Believe me, intelware is a tough enough niche. Expecting Palantir to be enterprise integration and automation software looks like an even more complex undertaking.
Can Palantir deliver? Sure, anything can be done with money, time, and appropriate knowledge resources (people, folks). The problem is that in DHS and other enforcement-type entities time is a problem. Changing priorities is a constant. Pressure is high and unrelenting. Small intelware vendors are, as I said, speedy. Big outfits aren’t.
Just a thought. (Oh, the CyberOSINT book is still available for free for law enforcement and intelligence professionals. Just write us at kentmaxwell at proton dot me.)
Stephen E Arnold, February 23, 2026
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