Cloudflare's competitive advantage

Bear and others have (understandably!) expressed concern over Cloudflare’s lofty valuation as compared to most of the other companies followed here. This article by From Growth to Value, while not addressing valuation directly, helped me understand the sheer vastness of the opportunity ahead of the company.

The gist is that:

  1. “Edge computing could become, over time, as big as cloud computing now,” and

  2. Because of its inherent design superiority, Cloudflare will dominate this market.

If these assumptions prove true, the size of the potential opportunity seems staggering.


(long NET 10%)…


The gist I read is how and where they make the network traffic routing and data manipulation decisions. Their decisions are made closer to the data source that needs the decision made.