11From Product to Platform
“Customers have a line item in their budget for a data warehouse.”
—Chris Degnan
EARLY IN THIS book we stated that our founding engineers realized they were building a data platform that could handle different types of data workloads, including cloud data warehousing. As a startup, Snowflake leadership made a strategic decision to position Snowflake as a data warehouse built for the cloud. Any prospect intent on analyzing their data had a data warehouse and had the budget to maintain their existing product and possibly upgrade to something new. Our exercise to determine our market position confirmed that Snowflake should be a cloud data warehouse. This decision served our customers and Snowflake well for about three years.
Two significant market forces caused us to rebrand Snowflake to what it really was—a cloud data platform, which is a solution that has many uses. The first market force is common with all products that are technologically diverse. Customers use your product based on how you position it. But their lens is not product-based, it’s problem- and opportunity-based. They buy solutions to solve data problems and create new business opportunities that never stop emerging. It makes sense they will leverage their existing solutions in ways beyond their malleable boundaries set by SaaS vendors’ product positioning. During our first few years, customers applied our product to workloads other than data warehousing. The product was already able ...
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