Stratechery Cloudflare's Disruption
Sep 30, 2021
Cloudflare introduces R2, a cloud storage service that aims to challenge giants like AWS by eliminating egress fees. The discussion delves into how disruptors like Cloudflare are reshaping the cloud landscape by addressing unmet needs and innovating services. Insights into the complexities of AWS's pricing structure reveal potential pitfalls for users. The evolution of cloud storage is highlighted, showing R2's compatibility with AWS and its advantages, marking it as a significant contender in the space.
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Cloudflare's Disruptive Start
- Matthew Prince, Cloudflare CEO, recalled the company's 2010 launch.
- He highlighted their disruptive strategy, targeting a different user base than larger incumbents, referencing Clayton Christensen's 'innovator's dilemma'.
New Market Disruption
- Cloudflare's initial success stemmed from serving a new market of long-tail websites.
- This aligns with Clayton Christensen's new market disruption theory, where disruptors initially target underserved customers.
AWS Transformation
- AWS revolutionized the industry by offering on-demand compute, solving issues of uneven usage, growth scaling, and infrastructure management.
- This eliminated the need for upfront server investments, fostering the startup ecosystem and shifting VC focus to customer acquisition.