Snowflake - the melting point

Persistent challenges with customer retention and cyberattacks expose the company to vulnerabilities.

Our ongoing coverage of Snowflake's difficulties has involved discussions with additional customers, insiders, and analysts. The following picture based on these conversations is concerning both Snowflake's board and its investors.

• Leadership and Strategy Challenges: Snowflake, led by CEO Sridhar Ramaswamy, is confronting notable challenges such as customer discontent with pricing and security concerns, particularly after a recent cyberattack. The company's reaction to these issues seems sluggish when contrasted with the promptness once shown under the former CEO and now Executive Chairman Frank Slootman. The board is facing investor pressure to alter leadership before it becomes too late.

• Customer Retention Challenges: Databricks sees blood in the water. Six out of the top ten customers intend to reduce their billing next year. Two of the top ten customers are considering a complete transition away. A significant drop in customer retention has been observed, with leading customers pla…