Cloudflare Expands Presence in Mexico Amid Growing Internet Usage and Cybersecurity Threats

Rhea-AI Summary

Cloudflare (NYSE: NET) announced significant growth in Mexico following a year of expansion. The company added a new data center in Guadalajara, processed an average of 50 billion daily Internet requests, and blocked 99 million cyber threats per day in Q3 2024, marking a 35% increase from the previous quarter. The company's Mexico-based team grew by over 200% to more than 50 employees since opening its Mexico City office. Cloudflare's network now spans more than 330 cities globally, including 45 cities across Latin America and the Caribbean, serving approximately 20% of web traffic worldwide. Key Mexican customers include Caliente.mx and Bitso, with the company partnering with system integrators like NTT DATA to expand its regional presence.

Positive

• Processed 50 billion daily Internet requests in Mexico
• 200% employee growth in Mexico operations
• Network expansion with new Guadalajara data center
• 35% quarter-over-quarter increase in cyber threat blocking capability
• Serves 20% of global web traffic

Negative

• None.

Insights

Market Research Analyst

The expansion in Mexico represents a significant strategic move for Cloudflare, with compelling market metrics: serving 50 billion daily Internet requests and blocking 35% more cyber threats quarter-over-quarter. The addition of Guadalajara as a data center location strengthens NET's infrastructure advantage in Latin America, where they maintain the highest number of SASE points of presence among competitors.

Key business wins include partnerships with major regional players like Caliente.mx and Bitso, demonstrating strong product-market fit in the growing Latin American cybersecurity sector. The 200% increase in local headcount and continued hiring across multiple departments indicates confidence in the region's growth potential. With 20% of global web traffic flowing through their network, this expansion solidifies NET's position in a strategic emerging market while diversifying revenue streams.

Tech Expert

The technical infrastructure expansion is particularly noteworthy given Mexico's evolving cyber threat landscape. The volume of 99 million daily cyber threats targeting Mexico demonstrates the market's urgent need for advanced security solutions. Cloudflare's integrated connectivity cloud approach, combining security with performance optimization, addresses a critical pain point for regional businesses dealing with fragmented cloud solutions.

The strategic placement of data centers and SASE points of presence directly impacts service quality and latency reduction - important factors for financial services clients like Bitso. The ability to block 7.5 million monthly malicious requests for a single client while simplifying access management showcases the platform's robust security capabilities and operational efficiency.

Over the past year the company has expanded its network infrastructure, customer base, and talent operations

MEXICO CITY--(BUSINESS WIRE)-- Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company on a mission to help build a better Internet, today announced its continued growth in the Mexico market following a year of investment and expansion. Since expanding its Latin American operations in Mexico City one year ago, Cloudflare has extended its Mexico network infrastructure with a new data center location in Guadalajara, grown its integrations with leading customers and partners in the region, and established its strong cross functional employee base.

This most recent quarter, Cloudflare served an average of 50 billion Internet requests to Mexico every single day. At the same time, cyber attacks continue to grow in sophistication and volume. In Q3 2024, Cloudflare blocked an average of 99 million cyber threats per day targeting Mexico, a 35 percent increase compared to the previous quarter. Navigating this complex landscape, organizations across Mexico are facing significant pain points because of siloed cloud solutions that make it difficult to build, scale, and stay secure. Cloudflare’s connectivity cloud identifies and automatically mitigates attacks of all types across Mexico while ensuring businesses’ Internet properties remain accessible and operate fast, even amid attacks.

“Cloudflare’s first year of operating on the ground in Mexico City has laid a strong foundation with our customers and partners across Latin America’s technology ecosystem,” said Carlos Torales, Head of Latin America at Cloudflare. “We’ve been deepening the integrations of Cloudflare’s connectivity cloud platform for organizations across sectors, powered by our infrastructure network which continues to expand in the region. Looking ahead, we remain focused on Cloudflare’s innovation coupled with partnership growth in order to provide more Mexican businesses with our all-in-one solution to secure and scale their operations globally.”

Today, about 20 percent of the web runs through Cloudflare’s network, one of the largest and most interconnected networks in the world. Cloudflare’s global network spans more than 330 cities in over 120 countries, including more than 45 cities across Latin America and the Caribbean—from Mexico City to Queretaro—and now Guadalajara, marking its most recent expansion in Mexico within the last year. Cloudflare first invested in Mexico when it expanded its network into Latin America in 2014 and has since been strategically placing its infrastructure close to users in the region. Looking at Latin America and the Caribbean, Cloudflare has the highest number of SASE points of presence across all vendors, delivering its Cloudflare One Zero Trust services closer to end users and reducing unwanted latency.

Customer and Partner Testimonials

Cloudflare has been helping secure, connect, and scale Mexican businesses for years, including customers like Caliente.mx, Mexico’s number-one online gaming and live sports betting platform, and Mexico-based Bitso, the largest cryptocurrency platform in Latin America. Cloudflare has also partnered with Global System Integrators like NTT DATA to provide solutions to shared customers in the region.

“Caliente is the number-one online gaming and live sports betting platform. As one of the top ten most-visited websites in Mexico, we needed an all-in-one, holistic solution to security and performance to meet all of our needs. Cloudflare continues to offer the optimal solution, without our team having to make concessions, right down to servers in cities around Mexico to reach our global user base,” said Lior Gross, Director of Software Development at Caliente. “We want Cloudflare to secure all our internal systems. Their strong commitment to working in Mexico is one of the reasons we are always looking for new ways to improve using Cloudflare tools.”

"Bitso is Latin America's leading financial services company powered by crypto, with over eight million customers using Bitso to buy, sell, send, and receive bitcoin, and over 50 other cryptocurrencies. We needed a solution to support our rapid expansion and Cloudflare provided us exactly that with Zero Trust security and performance optimization," said Emilio Revelo, Security Engineering Senior Manager at Bitso. "Cloudflare’s security solutions block over 7.5 million malicious requests to Bitso's website each month. Plus, by replacing VPN with Cloudflare Access, Bitso provides authorized access to internal resources in a few minutes instead of hours, or even days."

"NTT DATA is committed to empowering our customers to regain control and simplify security across distributed and multi-cloud environments. In partnership with Cloudflare, we're dedicated to extending their leading cloud security and together champion what it means to deliver cybersecurity everywhere," said Marco Sánchez, Sales Director at NTT DATA. "Starting with their global network spanning Latin America in order to reach and secure users worldwide, Cloudflare’s innovative approach to modernizing cloud security and sustainability will help build a safer and more secure digital future worldwide."

Cloudflare is continuing to invest in Mexico’s market and talent amid a growing business need for Cloudflare’s connectivity cloud. Cloudflare’s Mexico-based team has grown to more than 50 employees across cross-functional roles over the past year, a more than 200 percent increase since opening its office in Mexico City. Cloudflare continues to recruit new talent with various open positions including in Sales & Partnerships, Customer Support, Security, Accounting & Finance, Infrastructure, Legal, and more with virtual and hybrid work environments.

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

• Cloudflare Latin America Network Map
• Cloudflare is faster than Netskope and Zscaler across LATAM
• Cloudflare Partners
• Cloudflare Mexico Open Positions

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.

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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 expansion in Latin America and its office in Mexico City, the capabilities and effectiveness of, and the benefits to Cloudflare’s customers from using, Cloudflare’s products and technology, the growth of the Latin America market for Cloudflare’s network, products and technology, the potential growth of Cloudflare’s business, network, and operations in Latin America, Cloudflare’s plans and objectives for, and the timing of, the expansion of its business, network, and operations in Latin America, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s Head of Latin America 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 Quarterly Report on Form 10-Q filed on November 7, 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/20241120458521/en/

Cloudflare, Inc.

Daniella Vallurupalli

Vice President, Head of Global Communications

press@cloudflare.com

Source: Cloudflare, Inc.

FAQ

How many cyber threats did Cloudflare (NET) block daily in Mexico during Q3 2024?

Cloudflare blocked an average of 99 million cyber threats per day targeting Mexico in Q3 2024, representing a 35% increase compared to the previous quarter.

How many cities does Cloudflare's (NET) network cover in Latin America and the Caribbean?

Cloudflare's network covers more than 45 cities across Latin America and the Caribbean, including locations in Mexico City, Queretaro, and recently expanded to Guadalajara.

What percentage of daily Internet requests does Cloudflare (NET) process in Mexico?

Cloudflare processed an average of 50 billion Internet requests daily in Mexico during the most recent quarter.

How much has Cloudflare's (NET) Mexico-based team grown since opening its Mexico City office?

Cloudflare's Mexico-based team has grown by over 200% to more than 50 employees since opening its Mexico City office.