Honest question: I've never really understood the back of the napkin math of how Cloudflare functions economically, which I feel would go a long way towards my understanding of why/how they were able to become such an integral and generally positive part of the Internet. Did they have some crazy in to get cheap bandwidth? Did they bet big on bandwidth prices falling? Did they figure something else out that nobody saw…
Read our S-1, it's all in there. https://www.sec.gov/Archives/edgar/data/1477333/000119312519...
Market Opportunity
We believe our platform disrupts several large and well-established IT markets. The key markets that are addressed by our platform include VPN, internal and external firewalls, web security (including web application firewalls and content filtering), distributed denial of service (DDoS) prevention, intrusion detection and prevention, application delivery controls, content delivery networks, domain name systems, advanced threat prevention (ATP), and wide area network (WAN) technology. From our analysis based on IDC data, $31.6 billion was spent on those products in 2018, which is expected to grow to $47.1 billion in 2022, representing a compound annual growth rate of 10.5%. We also are actively developing new products to address adjacent markets including compute, storage, 5G, and Internet of Things (IoT) that are not included in the estimate of our addressable market.