Cloudflare Doubles Down on Middle East; Expands Presence and Team to Support Growing Customer Demand

Rhea-AI Summary

Cloudflare, Inc. (NET) announces increased investment in the Middle East to capitalize on the region's rapid digital transformation. The company opens a new office in Dubai Internet City, expands team, and strengthens partnerships to support customer success. Cloudflare's cybersecurity protection blocks 9.5 billion cyber threats daily in the region. The company aims to double its headcount in the Middle East over the next two years to meet growing demand.

Insights

Market Research Analyst

Cloudflare's strategic investment in the Middle East is indicative of the region's burgeoning digital economy and the growing demand for cybersecurity solutions. The Middle East is witnessing a significant digital transformation, with countries like the UAE and Saudi Arabia leading in internet accessibility. This transformation is not only increasing the demand for cloud services but also elevating the risk of cyber threats, as evidenced by the 31% increase in cyber threats from the previous quarter reported by Cloudflare.

The expansion of Cloudflare's infrastructure, including the establishment of a new office in Dubai Internet City, reflects a deeper commitment to the region. This move is likely to enhance local partnerships and customer relationships. The company's plan to double its regional headcount within two years aligns with the trend of increased internet usage, which grew by more than 20% in Q4 2023. Such growth in staffing and infrastructure could potentially lead to greater market penetration and an improved competitive stance in the Middle East.

Furthermore, collaborations with regional distributors like Mindware serve to strengthen Cloudflare's channel-driven business model, which is crucial for scaling operations in diverse markets. The focus on partner enablement and customer success is a strategic approach to ensure sustainable growth and to leverage local expertise.

Cybersecurity Expert

The reported average of 9.5 billion cyber threats blocked per day by Cloudflare in the Middle East underscores the critical importance of cybersecurity infrastructure in the region. The prevalence of sophisticated cyberattacks necessitates advanced protection measures for businesses, which Cloudflare's connectivity cloud services aim to provide. The company's expansion in the Middle East, with multiple data centers and a growing team, can be seen as a response to the increased cybersecurity demands.

Cloudflare's unified platform approach, combining networking, security and developer services, addresses the complexities of modern cyber threats. This strategy is particularly relevant in the Middle East, where the digital landscape is rapidly evolving. By enhancing its presence in the region, Cloudflare is positioning itself as a key player in safeguarding the digital assets of businesses amidst a challenging cybersecurity environment.

The partnership with Mindware, a leading cybersecurity distributor, further solidifies Cloudflare's commitment to providing comprehensive cyber protection. Such strategic alliances are essential for adapting to the specific needs of regional markets and for delivering tailored cybersecurity solutions.

Financial Analyst

Cloudflare's aggressive investment in the Middle East can be seen as a strategic move to capitalize on the region's high internet penetration rates and digital growth. The decision to expand operations, including doubling the workforce, is likely to have positive implications for the company's revenue streams and market share in the region. The growth in internet usage and the corresponding increase in cyber threats represent a substantial opportunity for Cloudflare to expand its customer base and increase its service offerings.

Investors should note the potential for increased revenue from the region, which could contribute positively to Cloudflare's overall financial performance. The strategic partnerships and enhanced local presence may lead to improved economies of scale and operational efficiencies. However, it is also important to consider the risks associated with such expansion, including the need to navigate complex regulatory environments and potential geopolitical uncertainties in the Middle East.

Cloudflare's performance in the region, particularly its ability to scale and integrate with local businesses, will be a critical factor to watch for assessing the company's future growth trajectory and its impact on stock performance.

Company increases investment in Middle East as rapid digital transformation of the region continues

SAN FRANCISCO & DUBAI, United Arab Emirates--(BUSINESS WIRE)-- Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced it is pushing forward with aggressive investment plans in the Middle East furthering its nearly decade-long commitment in the region. The investment includes a new office in Dubai Internet City and growing team focused on partner enablement, innovation, and customer success. The company first invested in the Middle East early in 2015 and has been strategically placing its infrastructure closer to users in the region while building out its team, partnerships, and operations. Cloudflare announced its first office in the Middle East nearly two years ago.

Also today, Cloudflare officially opened a new office in Dubai Internet City, which included a ribbon cutting and remarks from Michelle Zatlyn, Cloudflare’s Co-founder, President, and Chief Operating Officer. Cloudflare’s Dubai-based team, led by Bashar Bashaireh, Head of Middle East Sales, continues to grow in the region, signaling the company’s ongoing commitment to its customers and partners.

“Countries like the UAE and Saudi Arabia rank among the highest worldwide when it comes to access to the Internet, making the region a powerful source of growth and innovation,” said Michelle Zatlyn, Co-founder, President, & COO of Cloudflare. “Increased cybersecurity protection combined with a faster and more reliable Internet is key to unlocking continued growth for businesses. In Q4 2023, Cloudflare blocked an average of 9.5 billion cyber threats in the region per day – another example of the important role we play in protecting the Internet worldwide. With our leading cloud connectivity services, our growing team in the Middle East is committed to supporting our customers and deepening our partnerships locally.”

Cloudflare protects nearly 20% of all websites. In Q4 2023, Cloudflare saw Internet usage in the Middle East grow by more than 20%, while cyber threats increased 31% from the previous quarter. Cloudflare identifies and mitigates attacks across the Middle East while helping to ensure these Internet properties remain accessible and operate fast, even amid attacks.

Today, Cloudflare’s global network spans more than 310 cities in more than 120 countries, including 17 locations across the Middle East such as Dubai, Riyadh, Kuwait, Doha, Amman, Beirut, Baghdad, Jeddah, Muscat, Manama, and Erbil. The company first established data centers in the Middle East nearly a decade ago, and continues to build on its years-long network investment in the region.

Accelerating channel-driven business is also part of Cloudflare’s growth and expansion strategy across the Middle East. Last year Mindware, a leading regional value-added distributor, announced a strategic partnership with Cloudflare to provide sales support, go-to-market programs and after-sales services. Cloudflare also has an increased collaboration with service providers and global partners.

“The pace of digital transformation has rapidly accelerated in recent years, mostly driven by the organizational need to enable a hybrid workplace. Correspondingly, the incidence of cyberthreats has grown and evolved to an extremely high level of sophistication. In response to the needs of our partners and their customers, Mindware has been relentlessly enhancing its cyber security capabilities," said Nicholas Argyrides, Vice President - Gulf at Mindware. "Today Mindware is one of the leading Value Added Distributors in cybersecurity in the Middle East and we are extremely happy with our fruitful collaboration with an industry leader such as Cloudflare in such a dynamic market."

Over the past two years the company has been investing heavily in attracting the best talent in the region across a variety of functions including sales and marketing, technical support, operations and channel. Based on momentum and demand in the region, Cloudflare is forecasting to more than double its headcount in the region over the next two years.

“The Middle East region, characterized by fast-growing and innovation-driven economies that are being fuelled by the digital transformation trend, represents tremendous growth potential for Cloudflare. Cloud adoption has also gained momentum in the region over the last few years, with the essential regulatory frameworks and compliance policies now established, to propel enterprises into the next phase of digital transformation,” said Bashar Bashaireh, Head of Sales for Middle East at Cloudflare. “Cloudflare’s connectivity cloud strategy gives enterprises a unified platform of networking, security, and developer services.”

To support its growing customer base, Cloudflare has team members across the region and aims to double the number of employees over the next couple of years with virtual and hybrid work environments.

To learn more about Cloudflare Middle East, please check out the resources below:

• Cloudflare Middle East Network Map
• Cloudflare Middle East Open Positions

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 https://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 benefits to Cloudflare and its customers of its newly-opened office in Dubai Internet City, future plans to grow Cloudflare’s Dubai Internet City office and presence in the Middle East, Cloudflare’s technological developments, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s Co-founder, President and COO, Head of Middle East Sales, and others. Cloudflare’s 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 its 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 its forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.

© 2024 Cloudflare, Inc. All rights reserved. Cloudflare, the Cloudflare logo, and other Cloudflare marks are trademarks and/or registered trademarks of Cloudflare, Inc. in the U.S. and other jurisdictions. All other marks and names referenced herein may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240308676044/en/

Cloudflare, Inc.

Daniella Vallurupalli

Vice President, Head of Global Communications

press@cloudflare.com

Source: Cloudflare, Inc.

FAQ

What is Cloudflare's ticker symbol?

Cloudflare's ticker symbol is NET.

Where is Cloudflare increasing its investment?

Cloudflare is increasing its investment in the Middle East region.

How many cyber threats did Cloudflare block daily in the Middle East in Q4 2023?

Cloudflare blocked an average of 9.5 billion cyber threats per day in the Middle East in Q4 2023.

What percentage did Internet usage in the Middle East grow by in Q4 2023?

Internet usage in the Middle East grew by more than 20% in Q4 2023.

Who is leading Cloudflare's team in the Middle East?

Bashar Bashaireh is leading Cloudflare's team in the Middle East.