Should VAST Data prioritize enhancing its AI and analytics capabilities or focus on improving core storage performance for its enterprise customers?

Introduction

The trade-off between enhancing AI and analytics capabilities versus improving core storage performance for VAST Data's enterprise customers presents a critical strategic decision. This scenario involves balancing innovation with fundamental product strength. I'll analyze this trade-off by examining product understanding, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market trends, I'm thinking AI capabilities might be a key differentiator. Could you share more about our competitors' AI offerings and how they're positioning themselves?

Why it matters: Helps assess the urgency of AI enhancements vs. storage improvements Expected answer: Competitors are rapidly advancing AI features Impact on approach: Would prioritize AI capabilities if we're falling behind

• Considering our revenue model, I'm assuming enterprise storage is our primary revenue driver. Can you confirm our current revenue split between storage and AI-related services?

Why it matters: Determines the financial impact of focusing on either area Expected answer: 80% storage, 20% AI-related services Impact on approach: Would lean towards storage improvements if it's the dominant revenue source

• Looking at user behavior, I'm curious about the adoption rate of our existing AI features. What percentage of our customers are actively using our AI capabilities?

Why it matters: Indicates demand and potential growth for AI features Expected answer: 30% active usage of AI features Impact on approach: Low usage might suggest focusing on education or improvement of existing AI features before expanding

• From a technical perspective, I'm wondering about the scalability of our current storage architecture. How well can it support increased AI workloads without significant upgrades?

Why it matters: Assesses if storage improvements are necessary to support AI growth Expected answer: Current architecture can handle 2x current AI workloads Impact on approach: Might prioritize storage improvements if it's a bottleneck for AI expansion

• Regarding our development resources, what's our current split between storage and AI teams?

Why it matters: Determines our capacity to execute in either direction Expected answer: 70% storage, 30% AI Impact on approach: Might influence which area we can more quickly improve