Cloudflare Inc. SWOT & PESTLE Analysis

Strength

1. Global web infrastructure and security company with vast customer base: In recent years, the technology industry has undergone a significant transition from on-premise software and hardware to rented services in the cloud and various organizations find themselves at different points in this transition to cloud. This transition has further been fueled by the pandemic, which shifted work to online mode and made cloud service an essential service for all businesses. Cloudflare is a global cloud services provider, established in 2010 and run by CEO Matthew Prince since the founding. Cloudflare provides global cloud services which deliver a broad range of services to businesses in all geographies, enhancing critical business applications and making operations more secure. Cloudflare’s services also allow businesses to eliminate the complexity and cost of managing individual network hardware, serving as a scalable, easy to use, unified control plane which delivers high performance, security and reliability on-premise, cloud, SaaS and hybrid applications. The company has a vast customer case, serving more than 17% of the Fortune 1000 companies as of December 31, 2020. Cloudflare has paying customers in 200+ cities across 180+ countries and 99% of the internet-connected developed nation population is within 100 milliseconds of Cloudflare’s network. 48% of the company’s revenue is from outside of the US, with 3.5 million customers. Cloudflare saw a 68% growth in its large customers within 12 months of the first quarter in 2020.

2. Wide variety of flexible and scalable products and services offered by Cloudflare: Cloudflare provides a suite of integrated products that serve as a unified control plane for its customers and customers can easily and quickly join Cloudflare by using just one of the company’s products and expand product usage over time. The integrated suite of products consists of solutions to serve an organization’s internal resource such as internal networks and devices as well as external infrastructure issues such as apps and websites. Cloudflare also provides developer-based solutions as well as other consumer offerings. Cloudflare provides an integrated cloud-based security solution designed to secure any combination of platforms, including public cloud, private cloud, on-premise, SaaS applications, and IoT devices. Key security product offerings include Cloud Firewall, Bot Management, Distributed Denial of Service (DDoS), IoT, SSL/TLS, Secure Origin Connection and Rate Limiting. Cloudflare’s performance solutions reduce churn, improve conversions and improve visitor experiences by accelerating mobile and web performance, while keeping applications available. Key performance product offerings include Intelligent Routing, Content Delivery and Optimization, Mobile Optimization, Image Optimization and Mobile Software Development Kit. Other key offerings include Cloudflare apps and Analytics under developer-based solutions and various reliability and On-Ramps solutions such as DNS Resolver, IP connectivity and traffic acceleration among many others.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Rising trend of “Sustainable” Cloud: With the rising awareness of climate change, consumers now simply don’t just view organizations as providers for products but also expect them to represent values in favor of social and environmental good. Therefore, now companies have been increasing their ESG expenditure and investors have included ESG into their portfolios, and in fact, about 80% consumers listed sustainability as an important factor to consider when evaluating companies. While a shift to the cloud in itself is a sustainable move, reducing the waste generated by hardware and the carbon emissions generated during the production. However, cloud providers are becoming more sustainable by reducing their energy consumption and shifting to renewable energy, simultaneously reducing their carbon emissions by migrating areas of infrastructure to a public cloud. Public cloud migrations reduce carbon emission by millions of tons per year. This trend has been taken up by Cloudflare as well, providing public cloud, multi and hybrid cloud solutions.

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