Could you discuss why $FSLY has been more of a disappointment? I am aware their view is having fewer POPs but more throughput but other than that, never know why that's less of a value prop.
Perhaps, that architectural approach is just less useful for a DDoS use case?
Excellent writeup! I still struggle to understand the moats around Cloudflare with the hyperscalers seemingly expanding their edge networks. Would be great if you can dive in on how they would encroach on Cloudflare's services and how Cloudflare can defend its position? Also, does the falling NDBRR concern you?
In my view the barrier to competition is on the software side, Cloudflare is extremely strong in DDoS and also now SASE where the hyperscalers are not competing. But even if they do in the future, software tends to be a very sticky business and as customers prefer multi-cloud, it makes more sense to use Cloudflare as you don't want to have your apps solely running on AWS or Azure.
Falling NDBRR - we know that cloud spending is cyclically weak now, but it also falls naturally over time as businesses scale, i.e. the ever growing large customers won't keep increasing their spend at 30% per annum..
-DDoS and SASE, thank you, got it! Have they been good mousetrap for new clients?
-NDBRR rate, that's very helpful! Still impressive considering it might accelerate if they keep growing new modules like CRWD lately (120% NDBRR levels at a $3B ARR rate).
-Where do you see Cloudflare in 2033? Would they be a leader in any particular vertical?
- DDoS is really the core business, 30% of Fortune 1,000 uses this. SASE and networking security is starting now really, but they are winning big contracts here, e.g. on the Q2 call: "A Fortune 500 technology services company expanded their relationship with Cloudflare, signing a 3-year $7.2 million contract for Zero Trust. That brought their annual spend with us to over $5 million."
- Agreed, CROWD is a very impressive company as well.
Excellent writing and post. I am a fan and long Cloudflare. 🔥
Could you discuss why $FSLY has been more of a disappointment? I am aware their view is having fewer POPs but more throughput but other than that, never know why that's less of a value prop.
Perhaps, that architectural approach is just less useful for a DDoS use case?
The only other thing I've come across is that Cloudflare is much user friendly
I see, thanks for the work and responding!
Excellent writeup! I still struggle to understand the moats around Cloudflare with the hyperscalers seemingly expanding their edge networks. Would be great if you can dive in on how they would encroach on Cloudflare's services and how Cloudflare can defend its position? Also, does the falling NDBRR concern you?
In my view the barrier to competition is on the software side, Cloudflare is extremely strong in DDoS and also now SASE where the hyperscalers are not competing. But even if they do in the future, software tends to be a very sticky business and as customers prefer multi-cloud, it makes more sense to use Cloudflare as you don't want to have your apps solely running on AWS or Azure.
Falling NDBRR - we know that cloud spending is cyclically weak now, but it also falls naturally over time as businesses scale, i.e. the ever growing large customers won't keep increasing their spend at 30% per annum..
-DDoS and SASE, thank you, got it! Have they been good mousetrap for new clients?
-NDBRR rate, that's very helpful! Still impressive considering it might accelerate if they keep growing new modules like CRWD lately (120% NDBRR levels at a $3B ARR rate).
-Where do you see Cloudflare in 2033? Would they be a leader in any particular vertical?
- DDoS is really the core business, 30% of Fortune 1,000 uses this. SASE and networking security is starting now really, but they are winning big contracts here, e.g. on the Q2 call: "A Fortune 500 technology services company expanded their relationship with Cloudflare, signing a 3-year $7.2 million contract for Zero Trust. That brought their annual spend with us to over $5 million."
- Agreed, CROWD is a very impressive company as well.
Great piece!
Cloudflare is a company I struggle to grasp, your great article truly helps!