Will, I share your sentiment on the unsettled nature of the EO market such that we are facing a market with "too many pixels." I find that the EO providers have not determined how to productize all of the sensor data they are capturing and make it marketable. I sense that they are fine making their money form government projects but can not price any derivative product for fear of undercutting the price they charge to government entities. Would value your thoughts on this.
I think that may be true, but the US Government contracts are limited (EOCL etc), and we saw significant consolidation previously, mainly because of the limited pot. Now that the number of pixels flowing from LOE has increased significantly, the price has to drop (less scarcity), and the markets must broaden to account for a conceptual revenue gap. This has forced new space-oriented EO companies to look harder at commercially oriented analytics. But this is a much harder nut to crack; Defence comes with a built-in geo team; commercial/enterprise usually does not. Hence, there is a profound need for EO-derived analytics companies to act as intermediaries.
Will, I share your sentiment on the unsettled nature of the EO market such that we are facing a market with "too many pixels." I find that the EO providers have not determined how to productize all of the sensor data they are capturing and make it marketable. I sense that they are fine making their money form government projects but can not price any derivative product for fear of undercutting the price they charge to government entities. Would value your thoughts on this.
I think that may be true, but the US Government contracts are limited (EOCL etc), and we saw significant consolidation previously, mainly because of the limited pot. Now that the number of pixels flowing from LOE has increased significantly, the price has to drop (less scarcity), and the markets must broaden to account for a conceptual revenue gap. This has forced new space-oriented EO companies to look harder at commercially oriented analytics. But this is a much harder nut to crack; Defence comes with a built-in geo team; commercial/enterprise usually does not. Hence, there is a profound need for EO-derived analytics companies to act as intermediaries.