In July 2012, the cofounders of CloudFlare, a Silicon Valley startup that protects websites and accelerates their traffic, are considering the implications of five employees' resignations over the prior three months. Was this natural attrition for a high-tech venture with a staff of 35 experiencing explosive growth, or were the resignations symptomatic of bigger issues with CloudFlare's culture and management processes? After describing CloudFlare's early history, business model, organization structure, and human resources policies, the case presents first-person accounts from employees regarding their reasons for resigning, and then asks whether CloudFlare's cofounders should take any corrective actions.

Discussion Questions

What business is CloudFlare in?
What was Prince’s and Zatlyn’s take on leadership structure (hierarchical titles, managers, etc)?
How have Prince, CEO, and Zatlyn, cofounder, personally influenced company culture?
What is driving CloudFlare's operating principles to spend less money on hardware and staffing, and more time creating software solutions?
What problems do you see in CloudFlare that can be attributed to the structure and leadership style?
What are the challenges facing CloudFlare as it prepares to go IPO?