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Screaming in the Cloud
Summer Replay - Cutting Cloud Costs at Cloudflare with Matthew Prince
Jul 30, 2024
Matthew Prince, Co-founder and CEO of Cloudflare, shares insights about the complexities of cloud pricing, particularly critiquing AWS's high egress costs. He discusses the value of Cloudflare R2 as a cost-effective alternative for clients. The conversation also touches on how Cloudflare is evolving from CDN to a comprehensive service provider, emphasizing the importance of transparency in billing. Matthew reflects on the necessity of aligning product development with customer needs and how admitting mistakes can strengthen a business.
45:23
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Quick takeaways
- Matthew Prince discusses Cloudflare's initiative to eliminate egress charges through the Bandwidth Alliance, promoting transparency and cost reduction for customers.
- The introduction of Cloudflare R2 demonstrates the company's strategy to offer data storage solutions that align with real user needs, reducing reliance on traditional pricing models.
Deep dives
The Pricing Dilemma of AWS Egress Fees
Egress pricing by AWS has been criticized for being excessively high compared to the actual costs associated with bandwidth. Matthew Prince, CEO of Cloudflare, highlights the economic principle that bandwidth costs tend toward zero as traffic scales up, a perspective that contrasts sharply with AWS's fixed pricing model. This disparity has led to customer frustrations, with many companies exploring alternatives to avoid crippling egress charges. Among these, Netflix's use of its own CDN rather than AWS for streaming services provides a clear example of how businesses are adapting to minimize costs.
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Discover
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