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Meanwhile, AWS holds 41% of the entire marketspace, with $14.8 billion USD in revenues per quarter. Extrapolating that a bit, $60 billion USD in revenues... $50

by gzer0 5y ago

Meanwhile, AWS holds 41% of the entire marketspace, with $14.8 billion USD in revenues per quarter. Extrapolating that a bit, $60 billion USD in revenues... $500 million is peanuts compared to this [1]. What Cloudflare is trying to do is remarkable considering what they are up against. [1] https://www.cnbc.com/2021/07/29/aws-earnings-q2-2021.html https://www.cnbc.com/2021/07/29/aws-earnings-q2-2021.html

nuerow 5y ago
> What Cloudflare is trying to do is remarkable considering what they are up against. I repeat, Cloudflare is already the world's leading CDN provider, ahead of AWS by a long margin. This is not a David vs Golias story. At most it's a CDN Golias vs a all-in Golias. It's disingenuous to compare Cloudflare and it's CDN offering to AWS at face value based on gross revenue. AWS offers everything from build pipelines to satellite ground stations, and even provides backup services comprised of a big truck with armed guards. Cloudflare is impressive and very successful, but it's by no means a small upstart, specially when it serves a market where it eclipse all competitors, including AWS.
- tw04 5y ago
  Perhaps you meant Goliath? In any case, it kind of is a David vs. Goliath. Cloudflare currently employs ~1800 people and has revenues of under a billion dollars. They don't qualify as a large enterprise by anyone's definition. They aren't a 2-man shop but they are very much a David in the broader market. Amazon is an absolute monstrosity in comparison.
  - chucksmash 5y ago
    Golias is used in some other languages. See, e.g., http://www.bibliadinamica.comunidades.net/o-gigante-golias http://www.bibliadinamica.comunidades.net/o-gigante-golias
    - imwillofficial 5y ago
      Interesting read!
  - didibus 5y ago
    I think OP is correct, I'm not sure a judge would say that the "market" here is the entire set of cloud offerings. If the market is CDN, Cloudflare is the current market leader. I think this is generally how things are seen. For example, in the Apple vs Epic lawsuit, the judge said the market was "mobile gaming", and that in that space Apple was not a monopoly. Amazon total revenue adds up, but in each of the cloud categories they operate in, are they the leader?
streetcat1 5y ago
So AWS as well the other public clouds are being dis-integrated by small startups - see snowflake for DW and now cloud flare. Note that cloud flare is not fighting against AWS or Amazon but only against the S3 team inside AWS.
- lkbm 5y ago
  At this point they're competing with CloudFront, S3, and Lambda, but it is still a a long ways away from all of AWS.
  - nuerow 5y ago
    > * At this point they're competing with CloudFront, S3, and Lambda, but it is still a a long ways away from all of AWS. * Cloudflare's offering does not compete with Lambda at all. They have completely distinct usecases. Cloudflare Workers at best compete with Lambda@Edge, which in spite of its name is actually a CloudFront feature. https://aws.amazon.com/lambda/edge/ https://aws.amazon.com/lambda/edge/
    - aynsof 5y ago
      I'd say that CloudFront Functions was a closer functional fit (and likely created in response to Cloudflare Workers). Lambda@Edge, despite the name, doesn't actually run at edge locations, but CloudFront Functions does.
    - kentonv 5y ago
      Cloudflare Workers competes with both Lambda and Lambda@Edge. Workers is a general-purpose compute platform that happens to run on the edge; it is not a platform intended to be specific to things that need to run on the edge. (Disclosure: I'm the tech lead of Workers.)
      - yazaddaruvala 5y ago
        It's probably better said as, "CF Workers competes with Lambda's synchronous use-cases". Based on what I understand, there are still a few things missing to compete with Lambda's asynchronous use-cases. e.g. Step Functions, 15 min time limits, non-cron events (i.e. events for every CF product), batching events into the same execution, etc. While some of these are technically "not part of Lambda", to compete with Lambda CF needs the ecosystem as well. Disclosure: 1. I'm an AMZN investor, therefore calling out that the ecosystem is worth keeping in mind. 2. I'm a NET investor, therefore calling out that I'm looking forward to seeing the ecosystem develop :)

by gzer0 5y ago

nuerow 5y ago

> What Cloudflare is trying to do is remarkable considering what they are up against. I repeat, Cloudflare is already the world's leading CDN provider, ahead of AWS by a long margin. This is not a David vs Golias story. At most it's a CDN Golias vs a all-in Golias. It's disingenuous to compare Cloudflare and it's CDN offering to AWS at face value based on gross revenue. AWS offers everything from build pipelines to satellite ground stations, and even provides backup services comprised of a big truck with armed guards. Cloudflare is impressive and very successful, but it's by no means a small upstart, specially when it serves a market where it eclipse all competitors, including AWS.

tw04 5y ago
Perhaps you meant Goliath? In any case, it kind of is a David vs. Goliath. Cloudflare currently employs ~1800 people and has revenues of under a billion dollars. They don't qualify as a large enterprise by anyone's definition. They aren't a 2-man shop but they are very much a David in the broader market. Amazon is an absolute monstrosity in comparison.
- chucksmash 5y ago
  Golias is used in some other languages. See, e.g., http://www.bibliadinamica.comunidades.net/o-gigante-golias http://www.bibliadinamica.comunidades.net/o-gigante-golias
  - imwillofficial 5y ago
    Interesting read!
- didibus 5y ago
  I think OP is correct, I'm not sure a judge would say that the "market" here is the entire set of cloud offerings. If the market is CDN, Cloudflare is the current market leader. I think this is generally how things are seen. For example, in the Apple vs Epic lawsuit, the judge said the market was "mobile gaming", and that in that space Apple was not a monopoly. Amazon total revenue adds up, but in each of the cloud categories they operate in, are they the leader?

streetcat1 5y ago

So AWS as well the other public clouds are being dis-integrated by small startups - see snowflake for DW and now cloud flare. Note that cloud flare is not fighting against AWS or Amazon but only against the S3 team inside AWS.

lkbm 5y ago
At this point they're competing with CloudFront, S3, and Lambda, but it is still a a long ways away from all of AWS.
- nuerow 5y ago
  > * At this point they're competing with CloudFront, S3, and Lambda, but it is still a a long ways away from all of AWS. * Cloudflare's offering does not compete with Lambda at all. They have completely distinct usecases. Cloudflare Workers at best compete with Lambda@Edge, which in spite of its name is actually a CloudFront feature. https://aws.amazon.com/lambda/edge/ https://aws.amazon.com/lambda/edge/
  - aynsof 5y ago
    I'd say that CloudFront Functions was a closer functional fit (and likely created in response to Cloudflare Workers). Lambda@Edge, despite the name, doesn't actually run at edge locations, but CloudFront Functions does.
  - kentonv 5y ago
    Cloudflare Workers competes with both Lambda and Lambda@Edge. Workers is a general-purpose compute platform that happens to run on the edge; it is not a platform intended to be specific to things that need to run on the edge. (Disclosure: I'm the tech lead of Workers.)
    - yazaddaruvala 5y ago
      It's probably better said as, "CF Workers competes with Lambda's synchronous use-cases". Based on what I understand, there are still a few things missing to compete with Lambda's asynchronous use-cases. e.g. Step Functions, 15 min time limits, non-cron events (i.e. events for every CF product), batching events into the same execution, etc. While some of these are technically "not part of Lambda", to compete with Lambda CF needs the ecosystem as well. Disclosure: 1. I'm an AMZN investor, therefore calling out that the ecosystem is worth keeping in mind. 2. I'm a NET investor, therefore calling out that I'm looking forward to seeing the ecosystem develop :)