Should Infobip prioritize expanding its SMS API features or focus on improving the reliability of its existing Voice API service?

Introduction

The trade-off we're examining today is whether Infobip should prioritize expanding its SMS API features or focus on improving the reliability of its existing Voice API service. This decision involves balancing growth through new features against enhancing the quality of current offerings. I'll analyze this trade-off by considering market demands, technical feasibility, resource allocation, and potential impact on Infobip's business objectives.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Infobip might be facing pressure from competitors in the SMS space. Could you share any recent market shifts or competitor moves that are influencing this decision?

Why it matters: Helps understand external pressures and market positioning Expected answer: Increased competition in SMS, with new players offering advanced features Impact on approach: Would emphasize the importance of feature parity in SMS API

• Business Context: Based on typical API business models, I assume SMS API contributes significantly to revenue. What's the current revenue split between SMS and Voice APIs?

Why it matters: Helps prioritize based on financial impact Expected answer: SMS API generates 60-70% of API revenue Impact on approach: Would influence resource allocation towards the higher revenue stream

• User Impact: I'm guessing different customer segments rely on SMS vs Voice APIs. Can you outline the key user segments for each and their relative importance?

Why it matters: Ensures we consider impact on various customer groups Expected answer: Enterprise clients heavily use Voice API, while a broader range of businesses use SMS API Impact on approach: Would tailor solution to maintain satisfaction of high-value enterprise clients

• Technical: Considering the nature of Voice APIs, I suspect reliability issues might be more complex. What are the primary technical challenges affecting Voice API reliability?

Why it matters: Helps assess the effort required for improvement Expected answer: Network latency and call quality issues in certain regions Impact on approach: Would influence the timeline and resources needed for Voice API improvements

• Resource: Given the dual focus on SMS and Voice, I'm curious about team structure. How are engineering resources currently allocated between SMS and Voice API teams?

Why it matters: Helps understand current priorities and potential for reallocation Expected answer: 60% SMS, 40% Voice, with some shared resources Impact on approach: Would inform feasibility of shifting focus without major restructuring