Company: NET
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001477333-25-000043
Chunk: 28

Company: Cloudflare, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 28
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 positioned favorably against these vendors with our cloud-based, multitenant approach that is better suited to an increasingly cloud-based world and that allows customers to treat our services as operational as opposed to capital costs.

•Point solution vendors, which provide cloud-based products and services to address a single use case or challenge, in various categories including application and network security vendors, content delivery network (CDN) vendors, domain name system (DNS) services vendors, email security vendors, and SD-WAN vendors. Providers in these categories are all focused on delivering cloud-based point solutions. However, customers are increasingly looking for an integrated infrastructure platform offering security, performance, and reliability through a single vendor.

•A subset of services provided by traditional public cloud vendors. We believe customers want the ability to manage a consistent policy across their on-premises, cloud, hybrid, and SaaS vendors, and be able to enforce that policy through an independent and integrated services provider. Customers are concerned about being locked in to any one public cloud provider. Our ability to efficiently and inexpensively move data between multiple clouds allows our customers to pick and choose the best from any cloud provider without fearing lock-in. Furthermore, unlike some public cloud providers, our business model aligns fully with the interests of our customers. We do not sell user data. We do not aim to compete with our customers.

In addition, we believe we are increasingly competing with public cloud vendors for storage and compute workloads as more third-party developers utilize our serverless platform. Because of the efficiency of our Cloudflare Workers product, we are able to offer it at prices that are highly competitive with public cloud vendors, and because it is distributed across our entire network, it enables the development of applications that were not previously possible on the traditional public cloud.

The principal competitive factors in the markets in which we operate include:

•breadth of network and product features and continued innovation;

•integrated solutions across security, performance, and reliability;

•unified control plane across on-premises, cloud, hybrid, and SaaS infrastructure;

•performance, availability, and effectiveness;

•network scalability;

•total cost of ownership;

•ease of adoption and use;

•global network coverage;

•quality of customer support;

•programmability and extensibility of platform; and

•independence, reputation, and trust.

We believe that we are positioned favorably against our competitors based on these principal competitive factors.

Human Capital Resources

17

As of December 31, 2024, we had 4,