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What does Cloudflare do?

Cloudflare provides networking tools that help companies distribute their apps globally and securely.

Last updated Jun 18, 2026cybersecurity
Justin Gage
Justin Gage
Read within learning track:Analyzing Software Companies

The TL;DR#

Cloudflare provides networking tools that help companies distribute their apps globally in a secure way.

  • To make sure your apps and sites are fast no matter where your users are, developers put copies of their site in data centers across the globe, called a CDN
  • Cloudflare provides a giant, super fast CDN with built in security features to prevent attacks on your site
  • Over time, they’ve added adjacent products like serverless workers, load balancing, video streaming, and serverless storage

Cloudflare IPO'd back in 2019, and has grown to generate over $1.67 billion in annual revenue in 2024 [1] Revenue $1,669,626 (Year Ended December 31, 2024) with nearly 238,000 paying customers [2] From Cloudflare's most recent 10-K filing: The number of paying customers was 237,714, 189,791, and 162,086 as of December 31, 2024, 2023, and 2022, respectively. - so they're doing something right. Let's figure out what it is!

Terms Mentioned

HTML

UI

JavaScript

Distribution

Serverless

Server

Infrastructure

Networking

API

Cache

CSS

Script

Database

DNS

Companies Mentioned

AWS logo

AWS

AMZN
Cloudflare logo

Cloudflare

NET

Why developers and product teams use Cloudflare#

To understand Cloudflare, you need to understand a Content Delivery Network (CDN). It's a network of geographically diverse servers across the world where you can store your static assets – like website pages, photos, etc. – instead of building data centers yourself. You just put your static assets there, and they take care of serving users from the data center that's closest to them. Which means faster apps.

Cloudflare's core product is just that - a big, fast CDN. The kicker, though, is that they implement it in a kind of funky way - via a middleman tactic.

Instead of giving Cloudflare direct access to your static assets - like you might do with Netlify or Vercel - you use them as a DNS, or a Domain Name System. That means that you trust them to route your domain - something like technically.dev - to your actual servers. The first time someone makes a request from their browser to your site, Cloudflare acts as a middleman, and forwards that request to your servers. They then cache the response (i.e. the static files) in their network, replicate it across their hundreds of data centers, and deliver that the next time a user asks for it.

Why investors care about Cloudflare#

Perhaps the most interesting part of Cloudflare's CDN is that while the core responsibility is to serve static assets to users really quickly, they've also added a few killer features on top that make the product more compelling - the basis of which is security. Cloudflare's CDN protects your site against DDoS, or Distributed Denial of Service attacks, where attackers try to take down your site by hitting it with a ton of requests.

Over time, they've added adjacent products like serverless workers, load balancing, video streaming, and serverless storage. Cloudflare has proven there's massive demand for their platform approach to networking infrastructure.

The basics: a Content Delivery Network#

Every website or app can basically be broken down into two pieces:

  1. Static assets - things that don’t change
  2. Dynamic assets - things that do change

Static assets tend to include things like images (logos, product images, etc.), fonts, and the skeletons for most pages on the site - these things change very infrequently, hence the “static” denomination. 

Dynamic assets, on the other hand, are things that are constantly changing - and usually differ from user to user. To quote from the What’s a Web App post:

Think about your Twitter homepage:A lot of things here don’t change much. The order and the text of the tabs on the left, the logo, the search bar – all of this is the same for everyone. But what shows up in the feed, the little picture of me next to “profile” on the left, and the trending tweets on the right – those are all dynamic. If I had to guess, this is what the Twitter page looks like before the dynamic content gets put in:Once you log in, Twitter adds your profile photo (they stored it in their database) to the two little gray circles, and populates your feed with the right tweets and trending topics based on what they think you’ll want. 
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The separation between static assets and dynamic assets is very important - because it dictates how fast you can make your site or app. Static assets are cheap and easy to distribute - you can put copies on servers across the world, and when a user visits the site, send them the assets from whatever server is closest to them - be it in Singapore or Virginia. Dynamic assets, on the other hand, are much harder to distribute geographically, and tend to sit on one or a few centralized servers. Dynamic content is backed by an API, which probably sits on top of a database, i.e. it’s much more complex than a bunch of HTML or CSS. 

🔍 Deeper Look

The fact that content can be dynamic doesn’t necessarily mean it gets generated away from the server - different types of apps can use server side rendering or client side rendering. The debate goes back and forth, but server side rendering is coming back into vogue.

This is where the Content Delivery Network (CDN) comes in. It’s a network of geographically diverse servers across the world that you can store your static assets to instead of building data centers yourself. If that sounds like public cloud, that’s because it is - AWS has their own CDN product (Cloudfront), as well as GCP and Azure. You just put your static assets there, and they take care of serving users from the data center that’s closest to them. Which means faster apps.

The core Cloudflare product: CDN#

Cloudflare’s core product is just that - a big, fast CDN. The kicker, though, is that they implement it in a kind of funky way - via a middleman tactic. 

Instead of giving Cloudflare direct access to your static assets - like you might do with Netlify or Vercel - you use them as a DNS, or a Domain Name System. That means that you trust them to route your domain - something like technically.dev - to your actual servers. The first time someone makes a request from their browser to your site, Cloudflare acts as a middleman, and forwards that request to your servers. They then cache the response (i.e. the static files) in their network, replicate it across their hundreds of data centers, and deliver that the next time a user asks for it. 

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In layman’s terms (as we are all laypeople), it’s a bit like a franchise. The head office for McDonalds (the server) decides what the branding and product suite looks like, and all of the franchises (the servers on the CDN) copy that. When the head office wants to make a change, like adding the McRib (please god), all of the individual stores need to take down their menus and update them. That’s what it means to invalidate the cache - it tells Cloudflare’s servers that the static assets have changed, and they need to re-request them. 

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If you’ve ever seen the above screen, you’ve used Cloudflare. While the core responsibility of Cloudflare’s CDN is to serve static assets to users really quickly, they’ve also added a few killer features on top that make the product more compelling - the basis of which is security. Cloudflare’s CDN protects your site against DDoS, or Distributed Denial of Service attacks, where attackers try to take down your site by hitting it with a ton of requests. This is a notoriously high profile method of hacking, and Cloudflare even has a list of newsworthy DDoS attacks on their site.

The Cloudflare product suite#

Aside from a DDoS-protected CDN, Cloudflare offers a lot of other stuff in the networking space. There’s too much to cover here, so we’ll tackle a few illustrative examples:

Cloudflare Workers#

Cloudflare Workers let you go beyond static assets, and write scripts (think: Javascript, C+, etc.) that run on Cloudflare’s distributed network. This is similar to AWS’s Lambda, and represents a lot of promise for having developers skip infrastructure entirely and just worry about application code. As of recently, Cloudflare also supports storing persistent data via a key-value store.

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Video Streaming#

Cloudflare Stream Delivery lets you stream video to anywhere in the world quickly, using Cloudflare’s CDN. This is actually a pretty difficult problem, especially if you remember the early days of HQ Trivia. 

Rate Limiting#

The same technology that Cloudflare uses on their CDN to block DDoS attacks can also be used (at a price, of course) to prevent other types of attacks, and in general be specific about who can access your site. 

Load Balancing#

If your website has too much traffic for one server to handle (🤞), you might have multiple. Load balancers act as an intermediary between your user and your servers - every request hits the Load Balancer, and it decides which server to send the request to, usually based on a round robin sort of thing. Cloudflare provides this as a service, as does AWS and co.

Few of these products are super compelling in of themselves, but aggregated together in the same UI and billing platform, they start to make sense as an ecosystem.

One of Cloudflare's biggest advantages comes from their scale — because they handle so, so much internet traffic, they can negotiate good deals with Internet Service Providers (ISPs) to place equipment directly in their data centers [3] From Cloudflare's most recent 10-K filing: Given the large customer base we have and the immense amount of Internet traffic that we manage, we are able to negotiate mutually beneficial agreements with Internet service providers (ISPs) that allow us to place our equipment directly in their data centers, which drives down our bandwidth and co-location expenses.. Doing this dramatically reduces Cloudflare's bandwidth and hosting costs, which, you know, is good for the bottom line, and making new products that can operate on thinner margins.

---

Cloudflare is in an interesting spot, strategically. I’d generally consider them a boring company - everything in networking is boring, of course - but they’ve found themselves with a product suite that’s actually pretty compelling. This quote from @sperand_io sums it up well:

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Nothing about Cloudflare is particularly exciting by itself, but they’ve set themselves up in a position where they own distribution (i.e. the CDN), and so adding serverless (Cloudflare Workers) on top actually worked pretty well (and the product is popular, from my experience with engineering teams). Keep an eye out. 

Further reading#

  • The Cloudflare S-1 has good contextual information on how they view the business, and more financial info
  • Cloudflare has an entire learning section on their site dedicated to explaining what they do!
Up Next
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What does Vercel do?

Vercel builds a frontend-as-a-service product – they make it easy for engineers to deploy and run the user facing parts of their applications.

Breakdown: the cloud infrastructure market

How developers decide which *type* of infrastructure to use, and which (usually giant) cloud provider to buy it from.

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