Should Fastly prioritize expanding its global network or enhancing existing point-of-presence capabilities?

Introduction

The trade-off between expanding Fastly's global network and enhancing existing point-of-presence capabilities is a critical decision that will shape our company's future. This scenario involves balancing geographical reach with performance optimization at current locations. I'll analyze this trade-off by examining its impact on our business, users, and technical infrastructure.

Step 1

Clarifying Questions (3 minutes)

• Based on our current market position, I'm thinking network expansion might be crucial for competing with larger CDN providers. Could you share our current market share and how it compares to our main competitors?

Why it matters: Helps determine if growth or optimization should be prioritized Expected answer: We're a mid-sized player with room for growth Impact on approach: Would lean towards expansion if we're significantly behind competitors

• Considering our revenue model, I assume we charge based on data transfer. Is this correct, and are there any plans to change this model?

Why it matters: Affects the financial impact of network expansion vs. optimization Expected answer: Primarily usage-based pricing with some value-added services Impact on approach: Would focus on metrics tied directly to revenue generation

• Looking at user segments, I'm curious about the distribution of our client base. What percentage of our traffic comes from large enterprise clients versus smaller businesses?

Why it matters: Different client segments may have varying needs for global reach vs. performance Expected answer: Mix of enterprise and SMB clients with growing enterprise segment Impact on approach: Would tailor solution to needs of fastest-growing or highest-value segment

• From a technical standpoint, I'm wondering about our current network utilization. What's our average utilization across existing points of presence?

Why it matters: Indicates whether we need more capacity or better efficiency Expected answer: Moderate utilization with some high-traffic locations nearing capacity Impact on approach: Would influence decision between adding new locations or optimizing existing ones

• Regarding resources, can you give me an idea of our current team structure and capacity for either expansion or optimization projects?

Why it matters: Determines feasibility of different approaches based on available resources Expected answer: Balanced team with some flexibility for new projects Impact on approach: Would align recommendation with team strengths and capacity