Should Cohesity prioritize expanding DataProtect's cloud-native capabilities or focus on enhancing its on-premises features to cater to traditional enterprise customers?

Introduction

The trade-off we're examining today is whether Cohesity should prioritize expanding DataProtect's cloud-native capabilities or focus on enhancing its on-premises features for traditional enterprise customers. This decision is crucial for Cohesity's product strategy and market positioning. I'll analyze this trade-off by examining the product context, stakeholder impacts, metrics, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on market trends, I'm thinking cloud adoption is accelerating. Could you share our current revenue split between cloud-native and on-premises solutions?

Why it matters: Helps understand the current business landscape and potential growth areas. Expected answer: 60% on-premises, 40% cloud-native Impact on approach: Higher cloud revenue would justify prioritizing cloud capabilities.

• Considering our user base, I assume we have a mix of cloud-native and traditional enterprises. What's the adoption rate of our cloud solutions among existing on-premises customers?

Why it matters: Indicates potential for cross-selling and migration. Expected answer: 30% of on-premises customers have adopted some cloud solutions Impact on approach: Low adoption might suggest focusing on on-premises enhancements or improving cloud migration paths.

• From a technical standpoint, how modular is our current architecture? Can we develop cloud and on-premises features independently?

Why it matters: Affects the feasibility of parallel development tracks. Expected answer: Moderately modular, with some shared components Impact on approach: High modularity would allow for simultaneous development of both options.

• Regarding resources, what's our current team composition in terms of cloud vs. on-premises expertise?

Why it matters: Influences our ability to execute on either strategy. Expected answer: 60% on-premises experts, 40% cloud experts Impact on approach: Skill gap in either area might require additional hiring or training.

• Considering market dynamics, what's the projected growth rate for cloud-native backup solutions compared to on-premises over the next 3-5 years?

Why it matters: Helps align our strategy with long-term market trends. Expected answer: 25% annual growth for cloud, 5% for on-premises Impact on approach: Significantly higher cloud growth would support prioritizing cloud capabilities.