Earlier quoted context omitted.
The author is just spitballing in their role as a Cloudflare shill. They don’t actually know jack shit about public cloud netops or pricing strategy. The so-called “bandwidth alliance” they spruik so hard is a negotiating vehicle for Cloudflare, intended to improve their position when haggling over peering, to support profitability of their DDoS protection service.
Where’s the profitability in the DDoS service? Even free accounts have had massive DDoS attacks mitigated - for free. There is no pricing anywhere in their portfolio for DDoS mitigation or bandwidth. Cloudflare sells a lot of products but DDoS protection isn’t one of them. It’s a hook to get users on the platform to potentially upsell later but if all you need is DDoS protection they provide it for free.
Read the 10-K before spouting off about what value creation a middleman provides, and how it captures that value as revenue. Consumer services are last on their list and given little space. Large customers are explicitly stated as Cloudflare’s sales focus. And the entire top of the list of their disclosed competitors is everyone who sells a WAF or network protection apparatus to that segment.
> they provide it for free
This is naive. As ever, if it’s free, that means you’re part of the product. For social media, as is well understood, that’s your eyeballs sold to advertisers. In the case of Cloudflare, it’s consumer traffic that they pass as a middleman, used to build peering leverage through sheer volume. The clearest confirmation of this, however, is still Cloudflare going to all the time and trouble to wrangle together an industry collective - the so-called “bandwidth alliance” - for the express purpose of driving down settlement-based peering fees.
They are not altruists. This is the architecture of their competitive advantage.