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The valuation is based on hyper-aggressive growth expectations that compound over time. If you shave even a few percent off the growth projections stock takes a hit.

It’s hard to switch your CDN provider in the short term, but it’s feasible that Amazon, MSFT or Google could bump them out of every large enterprise in the long term.



> It’s hard to switch your CDN provider in the short term, but it’s feasible that Amazon, MSFT or Google could bump them out of every large enterprise in the long term.

That's what I'd worry about, too: for a large company, there's a fairly large cost to dealing with each new vendor. Once Amazon, Microsoft, Google, etc. has a CDN which is competitive for your needs someone is going to ask whether the extra benefits are greater than the cost of managing a contract, security, training, etc.


So next step for cloudflare is to provide a cloud.


They’re already starting that with Workers & similar but it’s a LONG way from what enterprise customers want. Even if they have some modern stuff they’ll almost inevitably ask for the ability to run some old Windows 2008 server they’ve been meaning to get rid off.


It’s a huge investment. Look at how hard it’s been for Google and Oracle.




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