Strategy question

You are a platform PM for AWS. There is a new third party platform that is becoming really popular in integrating with existing cloud platforms to improve the load balancing of app traffic. What metrics and goals would you consider in the build/buy decision?

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What this question tests

Whether the candidate can apply a structured build versus buy (or partner) framework using both financial and strategic considerations.

How to approach it

  1. Clarify the decision criteria: cost of building in-house versus licensing or acquiring, time to market, and strategic control over a core infrastructure capability.
  2. Assess strategic importance: load balancing is close to AWS's core competency, so building or acquiring likely protects long-term differentiation better than depending on a third party.
  3. Evaluate the third-party platform's traction as a signal: rapid adoption suggests real unmet customer need, which is valuable data regardless of the build/buy decision.
  4. Weigh options: acquire the platform for speed and to remove a competitive threat, partner for lower risk, or build in-house if the technology isn't highly differentiated.
  5. Recommend based on a concrete metric threshold, for example if customer demand data shows adoption growing over 20 percent quarter over quarter, lean toward acquire or build fast; otherwise partner.

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