Cloudflare Channel and Alliance Business Revenue Accelerates 174% Over Two Years and Expands with Additional Paths to Revenue, Program Awarded 5-Stars by CRN
- Cloudflare reports a significant 174% increase in channel revenue over the past two years, showcasing strong growth in its partner ecosystem.
- The company's PowerUP Partner Program receives a prestigious 5-Star ranking from CRN, recognizing its excellence and effectiveness in driving partner success.
- Cloudflare's focus on cybersecurity solutions through its connectivity cloud suite aims to address the evolving threat landscape faced by organizations worldwide.
- The PowerUP Program offers partners clear paths to revenue by emphasizing modernization, platform consolidation, and data compliance to meet customer needs and drive business growth.
- Cloudflare's partnerships with industry leaders like IBM Cloud, Kyndryl, GuidePoint Security, Dicker Data, and TD SYNNEX highlight successful collaborations and the value of its solutions in the market.
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Insights
The announcement by Cloudflare regarding the growth of its channel revenue and the introduction of the Cloudflare PowerUP Partner Program is a strategic move aimed at leveraging its existing network to amplify sales and market penetration. The reported 174% increase in channel revenue over two years is indicative of a strong market demand for Cloudflare's services, which include cybersecurity, network optimization and edge computing capabilities.
From a market perspective, this expansion of the partner program could potentially lead to an increase in Cloudflare's market share and customer base, as partners are incentivized to promote Cloudflare's suite of solutions. The tiered benefits and simplified consumption pricing structure are designed to attract a diverse range of partners, from resellers to global system integrators, which could result in a broader distribution channel.
Furthermore, the emphasis on training and accreditations for partners suggests a commitment to quality and expertise in the delivery of Cloudflare's services. This could enhance customer satisfaction and retention, contributing to the company's long-term financial stability. However, the actual impact on Cloudflare's financial performance will depend on the execution of the program and the competitive response from other players in the market.
Cloudflare's expansion of its PowerUP Partner Program highlights the growing complexity of the cybersecurity landscape and the need for robust, distributed protection against a variety of threats. The program's focus on protection from one of the largest networks and the mitigation of DDoS attacks speaks to the scale at which Cloudflare operates, providing a significant value proposition for potential partners and clients.
The cybersecurity framework offered by Cloudflare, including its Data Localization Suite, addresses the increasing concerns around data compliance and regulatory requirements. By facilitating compliance with standards such as GDPR, CCPA, PCI DSS and HIPAA, Cloudflare is positioning itself as a go-to provider for organizations prioritizing data sovereignty and security.
However, the efficacy of these cybersecurity measures and the ability of Cloudflare's partners to effectively deploy and manage them will be critical in determining the program's success. The landscape of cyber threats is ever-evolving and Cloudflare's ability to stay ahead of these developments will be a determining factor in its business impact.
The announcement by Cloudflare of its channel revenue growth and the enhanced PowerUP Partner Program could have a positive impact on its financials, particularly if the program succeeds in driving sales and reducing the Total Cost of Ownership (TCO) for clients. The 50% reduction in TCO claimed by Cloudflare, if substantiated, could be a significant selling point for partners to leverage when promoting Cloudflare's solutions to potential customers.
From a financial analysis standpoint, the key metrics to watch following this announcement will be Cloudflare's revenue growth rate, partner acquisition rate and customer retention rate. The program's tiered structure and benefits could incentivize partners to increase sales efforts, which in turn could lead to higher revenue for Cloudflare. Additionally, the program's training and accreditation components could improve the quality of service delivery, potentially leading to higher customer satisfaction and retention rates.
Investors should monitor how these initiatives translate into Cloudflare's quarterly financial reports, while also considering the competitive dynamics of the industry that may influence Cloudflare's market position and pricing power.
Cloudflare PowerUP Partner Program offers partners clear routes to market, bolstering business opportunities and cloud innovation
With the rapid growth of interconnected applications, employees, and devices, comes new and more sophisticated attack vectors. Organizations with limited security and traditional network architectures are not only facing increased risk of attack, but are also hindered by the lack of freedom to innovate between cloud applications. Cloudflare’s connectivity cloud is the digital core for businesses to transform how they connect, protect, and build in their digital environments.
Partners are crucial to extend the solutions and support that customers need to control application complexity, reduce cyber risk, and cut costs, all through Cloudflare’s network. Cloudflare’s all-in-one, robust approach to an organization’s cybersecurity framework includes connectivity between multiple clouds. Over the past year, Cloudflare has partnered with a large number of organizations, realizing the business opportunity of helping customers secure their Internet applications and innovate with full control across cloud environments.
“We have seen a vast range of customers worldwide benefit from Cloudflare’s connectivity cloud and we have to credit our channel partnerships and alliances. Cloudflare’s channel growth is a testament to how we’ve been deepening our work with partners and distributors”, said Matthew Harrell, Cloudflare Global Head of Channels & Alliances. “As consolidation and security have become front and center for every business, the channel is facing a huge opportunity across the market with Cloudflare’s solutions. Our recently launched PowerUP Program brings new levels, resources, and support to ensure our partners can capitalize on this opportunity.”
All of the Cloudflare PowerUP Partner Program tiers, across Registered, Select, and Elite, can deliver Cloudflare’s connectivity cloud suite of solutions, including:
- Protection from One of the Largest Networks: Cloudflare runs one of the largest and most interconnected networks in the world, and has the largest global network of DDoS mitigation data centers. With its globally distributed data centers, the Cloudflare threat network absorbs and neutralizes attacks while keeping websites and Internet applications accessible to legitimate users. Cloudflare’s industry-leading cybersecurity protects corporate networks, Internet applications, and users, all delivered through a unified platform.
- Modernization Across Corporate Networks and Internet Applications: Cloudflare provides the leading network and edge capabilities needed for flexible work environments. This includes reducing tech debt and legacy architecture while saving customers’ IT teams from manual work. Partners advise and assist customers in managing their IT infrastructure as they evolve their networks and transfer workloads into Cloudflare’s connectivity cloud.
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Platform Consolidation: Consolidating with Cloudflare’s connectivity cloud can reduce application complexity and drive down Total Cost of Ownership (TCO) by
50% 1 without any security or performance tradeoffs, helping accelerate modernization across digital environments. - Data Compliance: The Cloudflare Data Localization Suite is designed as a specialized platform to help organizations protect, connect, and build in compliance, regardless of where the organization and its users are based. The offering helps address a wide and growing range of regulations, frameworks, and standards including GDPR, CCPA, PCI DSS, and HIPAA.
Partner Testimonials
Cloudflare’s channel business is extended through longstanding partnerships and alliances with Global System Integrators, Managed Service Providers, Resellers, and Distributors, among the likes of IBM Cloud, Kyndryl, GuidePoint Security, Dicker Data, and TD SYNNEX:
“Both IBM Cloud and Cloudflare have a mission of delivering solutions that will address potentially costly security threats, without hindering Internet speed or business innovation,” said Nataraj Nagaratnam, Fellow, CTO, IBM Cloud Security. “We are proud to collaborate with Cloudflare to help protect enterprises against bot attacks. Together, we are helping our clients to support their security, performance, and resiliency needs.”
“Having a robust and secure modern network is of utmost importance for today’s enterprises. Kyndryl and Cloudflare’s global strategic alliance provides companies with expert technologies and services to drive network transformation,” said Paul Savill, Global Practice Leader of Network and Edge Computing at Kyndryl. “Kyndryl’s leading managed and consulting network services, combined with Cloudflare’s innovative cloud networking technologies, enables enterprises to embrace a multi-cloud, sustainable networking approach to improve performance and security across their technology stack.”
“As organizations continue to migrate to the cloud and the threat landscape becomes increasingly more complex, the need for strong cloud security has never been greater,” said Mark Thornberry, SVP of Vendor Relations at GuidePoint Security. “Our partnership with Cloudflare can help our joint customers innovate and prioritize digital transformation with a proactive approach to mitigating risk across cloud environments.”
“Cloudflare continues to deliver the offerings that have supported our partners in managing multi-cloud environments with leading cybersecurity capabilities baked in. From hybrid workers to applications like APIs and websites, Cloudflare is helping secure and connect the Internet at scale.” said Vlad Mitnovetski, Chief Operating Officer of Dicker Data. “Cloudflare is consistently in line with our commitment to provide our partners across ANZ with access to the most comprehensive solutions, enabling them to protect and extend their networks.”
“TD SYNNEX is committed to uniting IT solutions that deliver business outcomes today and unlock growth for the future, with tailored and flexible approaches for organizations,” said Jessica McDowell, SVP of High Growth Technologies, US of TD SYNNEX. “With Cloudflare as a strategic part of our vast portfolio of vendor partners, we're able to enrich the breadth and depth of our connectivity cloud and security offerings so customers can do great things with technology.”
Program Highlights
To ensure all partners are equipped to extend solutions to market with clear paths to revenue, the Cloudflare PowerUP Partner Program revolves around:
- Tiered and Easy-to-Apply Benefits: Across partner tiers, including Registered, Select, and Elite, partners receive access to a range of benefits. With Elite, partners can access an exclusive designated Cloudflare Channel Manager and Presales Engineer, joint business planning, proposal-based MDF, marketing support, eligibility to participate in the Cloudflare Partner Advisory Board, customized training, and more.
- Simplified Consumption Pricing: Partners can list and bill confidently with transparent and predictable discounts based on the partner tier. Authorized partners have access to the price list via the Cloudflare Partner Portal or Cloudflare Authorized Distributors.
- Extensive Training and Accreditations: Partners are designed to serve as trusted experts across Cloudflare’s connectivity cloud. Becoming authorized as a partner includes accreditations and exclusive sessions, starting with upleveling skills from Cloudflare University, to customized training.
- Driving Sales Pipeline: The Program’s new, flexible selling tools are set up for adoption and expansion deals to close business faster.
To learn more about the Cloudflare PowerUP Partner Program, please check out the resources below:
About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the capabilities and effectiveness of Cloudflare’s products and technology, the benefits to Cloudflare’s customers from using Cloudflare’s products and technology, the benefits to Cloudflare’s partners from participating in the Cloudflare PowerUP Partner Program, Cloudflare’s plans and expectations for its partnership and alliances efforts (including the Cloudflare PowerUP Partner Program), Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s Global Head of Channels & Alliances and others. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Annual Report on Form 10-K filed on February 21, 2024, as well as other filings that Cloudflare may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.
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1 Citation: https://www.techvalidate.com/product-research/cloudflare/facts/15F-FAE-6D8
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326328287/en/
Cloudflare, Inc.
Daniella Vallurupalli
Vice President, Head of Global Communications
press@cloudflare.com
Source: Cloudflare, Inc.
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