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Product Management Trade-off Question: AWS infrastructure expansion versus optimization strategy

The AWS team is debating: should we add more Amazon AWS regions with higher costs, or optimize existing AWS infrastructure?

Product Trade-Off Hard Member-only
Strategic Decision Making Data Analysis Cost-Benefit Analysis Cloud Computing Enterprise Software IT Infrastructure
Product Strategy Cloud Computing AWS Market Expansion Infrastructure Optimization

Introduction

The AWS team is facing a critical decision: should we expand our infrastructure by adding more Amazon AWS regions, despite higher costs, or focus on optimizing our existing AWS infrastructure? This trade-off involves balancing geographical expansion with operational efficiency. I'll analyze this scenario using a structured approach, considering business objectives, user impact, technical feasibility, and resource allocation.

Analysis Approach

I'd like to outline my approach to ensure we're aligned on the key aspects we'll be exploring in this analysis.

Step 1

Clarifying Questions (3 minutes)

  • Business Context: I'm thinking this decision might be driven by increasing global demand. Could you share insights on our current regional distribution of customers and their specific needs?

Why it matters: Helps determine if expansion is necessary to meet customer demands. Expected answer: Significant growth in underserved regions. Impact on approach: Would prioritize expansion if growth opportunities are identified.

  • User Impact: Based on our customer feedback, I'm assuming latency is a key concern. Can you provide data on current performance metrics across different regions?

Why it matters: Identifies whether optimization or expansion would better serve user needs. Expected answer: Varied performance across regions, with some experiencing higher latency. Impact on approach: Would focus on expansion if latency issues are geographically concentrated.

  • Technical Feasibility: Considering our current infrastructure, I'm curious about our capacity for optimization. What's our current utilization rate across existing regions?

Why it matters: Determines if there's room for improvement without expansion. Expected answer: High utilization in some regions, lower in others. Impact on approach: Would lean towards optimization if significant unused capacity exists.

  • Resource Allocation: Given the potential scale of either option, I'm wondering about our budget constraints. What's our current investment allocation for infrastructure projects?

Why it matters: Ensures the chosen strategy aligns with financial resources. Expected answer: Specific budget range for infrastructure projects. Impact on approach: Would tailor the strategy to fit within budgetary constraints.

  • Timeline Pressure: Considering market dynamics, I'm thinking about the urgency of this decision. Are there any upcoming events or competitor moves that might influence our timeline?

Why it matters: Helps prioritize short-term vs. long-term solutions. Expected answer: Potential market shifts or competitor expansions on the horizon. Impact on approach: Would accelerate expansion plans if market pressure is high.

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