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Unless there's a big skills gap, I'd look at the existing team for folks to lead on SRE or similar roles. I've always found someone on a team who wants to grow beyond their role.

Like Steve said, it does depend on what the skills gap might be. But you’re usually going to be better off with internals moves there imo. Someone who is already familiar with your systems and ways of working will have an easier time stepping up to that plate and piecing things together. Though I definitely don’t discount the power of bringing in outside knowledge and ideas, even just the impact of a fresh set of eyes on things can help a lot

What’s a “lateral” hire?

Another term for hiring externally