For Riverbed Technology's NetProfiler, should we focus on expanding cloud monitoring capabilities or enhancing on-premises network visibility features?

Introduction

The trade-off we're examining today is whether Riverbed Technology's NetProfiler should focus on expanding cloud monitoring capabilities or enhancing on-premises network visibility features. This decision is crucial for the product's future direction and market positioning. I'll analyze this trade-off by considering market trends, user needs, technical feasibility, and business impact. My approach will involve clarifying the context, understanding the product, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

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

Why it matters: Helps understand current market position and potential growth areas Expected answer: 60% on-premises, 40% cloud Impact on approach: Higher cloud percentage would lean towards cloud expansion

• Considering user segments, I assume we serve both enterprise and mid-market customers. What's the breakdown of our customer base, and are there differences in cloud adoption between these segments?

Why it matters: Identifies which user groups might be most impacted by this decision Expected answer: 70% enterprise, 30% mid-market; enterprises slower to adopt cloud Impact on approach: Would influence feature prioritization based on segment needs

• From a technical perspective, I'm curious about our current cloud monitoring capabilities. How mature is our cloud offering compared to our on-premises solution?

Why it matters: Assesses the level of investment needed for cloud expansion Expected answer: Cloud offering is 2 years old, lacks some advanced features Impact on approach: Less mature cloud offering might require more resources for expansion

• Regarding resources, what's our current team structure? Do we have separate teams for cloud and on-premises development?

Why it matters: Determines if we have the right skills and capacity for either option Expected answer: One unified team with more on-premises expertise Impact on approach: Might need to consider hiring or training for cloud expansion

• Looking at timelines, is there a specific market event or customer demand driving the urgency of this decision?

Why it matters: Helps prioritize short-term vs. long-term considerations Expected answer: Major cloud provider partnership opportunity in 6 months Impact on approach: Could push towards accelerating cloud capabilities