Cloudflare Enters Observability Market with Acquisition to Enhance Serverless Performance

Rhea-AI Summary

Cloudflare acquires Baselime to enter the observability market, enhancing developer platform tools for serverless apps. The acquisition aims to provide deep insights, improve performance, and optimize costs for developers building on Cloudflare's platform.

Insights

Market Research Analyst

The acquisition of Baselime by Cloudflare represents a strategic move into the observability market, which is a growing segment within the cloud computing industry. Observability tools are essential for developers to monitor and troubleshoot cloud applications effectively. The integration of Baselime's technology with Cloudflare's existing developer platform could provide a competitive edge by offering a more comprehensive suite of tools for serverless application development and maintenance.

From a market perspective, this acquisition could enhance Cloudflare's value proposition to developers, potentially increasing the platform's user base and stickiness. By addressing the known challenge of observability in serverless architectures, Cloudflare may attract new customers seeking a more robust solution for their development needs. This move could also signal to investors that Cloudflare is actively expanding its product offerings to capture more market share in the fast-evolving cloud services sector.

Financial Analyst

Cloudflare's entrance into the observability market via acquisition could have several financial implications. Firstly, it may lead to an increase in R&D expenses due to the integration and further development of Baselime's technology. However, if the integration is successful, it could lead to higher revenue streams from existing and new customers who require advanced observability tools for their serverless applications.

Investors should monitor Cloudflare's quarterly financials for increases in operating expenses and gauge whether these are offset by revenue growth attributed to the new observability tools. Moreover, the market's reaction to this acquisition could influence Cloudflare's stock price in the short term, as investors assess the potential for market expansion and revenue diversification.

Cloud Computing Expert

Observability is a critical aspect of cloud computing, particularly for serverless architectures where traditional monitoring tools may fall short. Cloudflare's acquisition of Baselime indicates a commitment to addressing the unique challenges of serverless observability. By integrating Baselime's tools, Cloudflare aims to provide developers with the ability to analyze application behavior, optimize performance and troubleshoot issues more effectively.

Understanding the technical advantages of this acquisition is important. Baselime's use of OpenTelemetry standards could simplify the integration process with various application frameworks and cloud providers, which would be a significant benefit for developers. This standardization could also reduce the learning curve and barriers to entry for developers new to Cloudflare's platform, fostering a more inclusive and accessible development environment.

Cloudflare enters new market; acquisition will enhance observability tools within Cloudflare's developer platform to keep pace with the evolving needs of modern web applications

SAN FRANCISCO--(BUSINESS WIRE)-- Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced an entrance into the observability market with the acquisition of Baselime, the cloud-native observability platform. By integrating Baselime’s technology with Cloudflare’s developer platform, Cloudflare will be uniquely positioned to bring deep knowledge of serverless platforms and developer experience together to solve the challenges of observability for serverless apps. Today, entire applications are built on serverless architectures, from compute to databases, storage, queues, and more. Still, observability is often regarded as one of the weaknesses of serverless architectures — trading off visibility into the application’s behavior for scalable infrastructure that doesn’t need to be managed. Building and debugging production applications requires the ability to understand trends and patterns, identify performance bottlenecks, and isolate errors to ensure ongoing reliability, scalability, and security. Having access to this level of visibility, preferably all within one platform, is a critical factor developers consider when choosing a platform on which to build.

“Two million developers building on Cloudflare trust us to help scale their apps globally, but can still struggle to understand the behavior of their cloud applications,” said Matthew Prince, co-founder and CEO, Cloudflare. “We believe that to be the leading developer platform, having the best observability tools built in is going to be table-stakes. Baselime has raised the standard for serverless observability and we can further unlock those insights for every developer building on our platform.”

With this acquisition, Cloudflare enters into the observability market to further enable developers to deploy services in production — allowing teams to identify when a release has gone wrong and needs to be rolled back, investigate bugs and regressions, optimize performance, and more. Developers will also benefit from the ability to optimize the cost of their serverless applications, by understanding the rate of requests made and analyzing sources of latency.

With this acquisition, Baselime will be integrated into Cloudflare’s developer platform, helping developers push the boundaries of modern observability to:

• Analyze their observability data across thousands of possible fields and values, to surface all errors, requests, or performance issues for specific users or across their entire applications.
• Enable and adopt OpenTelemetry-based tools and standards to facilitate integration with a diverse set of application frameworks and cloud providers. These tools and standards enable developers to easily and consistently instrument their applications for rich observability data, making it easier to quickly troubleshoot issues, whether they impact a single user, a subset of users or the entire application.
• Extract insights from their observability data thanks to a suite of developer experience improvements, including real-time error tracking based on logs and traces, actionable alerts, trace diagrams and timelines, an approachable query engine, and an AI debugging assistant.

“Cloudflare is building the next frontier of cloud computing with their connectivity cloud. Our core mission has always been to simplify and innovate observability for the future of the cloud, and Cloudflare's ecosystem offers the ideal ground to further this cause,” said Boris Tane, founder and CEO, Baselime. “With Cloudflare, we're positioned to deeply integrate into a platform that two million developers trust, enabling them to build, ship, and troubleshoot applications fast. I am incredibly excited about the potential of what we can build together and the impact it will have on developers around the world.”

To learn more, please check out the resources below:

• Blog: Cloudflare acquires Baselime to expand serverless application observability capabilities
• Two million developers are now building on Cloudflare’s developer platform
• cloudflare.com/developer-platform/

About Cloudflare

Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company on a mission to help build a better Internet. 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.

Follow us: Blog | X | LinkedIn | Facebook | Instagram

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 developer platform and other products technology and Baselime’s products and technology, the benefits to Cloudflare’s customers from using Cloudflare’s developer platform and other products technology and Baselime’s products and technology, the timing of when Cloudflare’s developer platform and Baselime‘s products and technology and or any of their related features will be fully integrated and generally available to all current and potential Cloudflare customers, Cloudflare’s plans and objectives for, and the timing of, the integration of Baselime’s products and technology into Cloudflare’s developer platform, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s CEO 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.

© 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/20240404682785/en/

Cloudflare, Inc.

Daniella Vallurupalli

Vice President, Head of Global Communications

press@cloudflare.com

Source: Cloudflare, Inc.

FAQ

What market did Cloudflare enter with the acquisition of Baselime?

Cloudflare entered the observability market with the acquisition of Baselime.

How will the acquisition enhance Cloudflare's developer platform?

The acquisition will bring deep knowledge of serverless platforms and developer experience together to solve observability challenges for serverless apps.

What benefits will developers get from this acquisition?

Developers will benefit from improved performance, deep insights, cost optimization, real-time error tracking, actionable alerts, and AI debugging assistant.

What tools will Baselime bring to Cloudflare's platform?

Baselime will bring tools to analyze observability data, adopt OpenTelemetry-based tools and standards, and extract insights from observability data.

Who is the CEO of Cloudflare?

Matthew Prince is the co-founder and CEO of Cloudflare.