Cloudflare, Inc. (NET) Earnings Call Transcript & Summary

Hello. Welcome to Cloudflare Investor Day 2021. Thank you very much for taking time out of your Friday afternoon to join us. My name is Jayson Noland. I'm the Head of Investor Relations at Cloudflare. We have a great lineup for you today. Matthew Prince, our Co-Founder and CEO, will begin with our culture of innovation; Michelle Zatlyn, our Co-Founder, President and COO, will host a customer panel; Jen Taylor, our Chief Product Officer, will host a panel of 3 Cloudflare product managers that represent exciting offerings such as Cloudflare Workers, Cloudflare zero trust services and Cloudflare network services. Finally, Thomas Seifert, our CFO, will provide a financial update, including guidance for the first quarter and full year 2021. To end things off, we'll invite Matthew, Michelle, Jen and Thomas back to the stage for a Q&A session. We're going to try to keep the event to about 2.5 hours. A safe harbor statement before we get started. In today's discussion, we'll be making forward-looking statements. These forward-looking statements are based on risks, uncertainties and assumptions. These risks, uncertainties and assumptions can be found in our most recent SEC filings. Now I'd like to turn the stage over to our CEO, Matthew Prince.

Thank you, Jayson, and thanks for tuning in to Cloudflare's Investor Day. For many of you who are watching this live, today is Friday afternoon before a long weekend. I appreciate you tuning in to learn about Cloudflare and our business. We've got a terrific day planned in terms of what we're going to do over the next few hours. We're going to kick it off with me talking about something that I think is really unique about Cloudflare, which is our culture of innovation and where that comes from and how it allows us to develop and release products so quickly. I'm going to turn it over to Michelle, who's going to host a customer panel. Jen is going to walk through some of our own product managers and how they think about developing products at Cloudflare. Thomas is going to update our financial models and give you more insight on some of the metrics behind our business. And then all of us will be back to do a Q&A at the end live and answer any questions that you have. The entire process, the entire day should take about 2.5 hours. And we hope, by the end of it, you'll have a better understanding of our business. And so thank you, again, for tuning in on your Friday afternoon. Cloudflare launched almost exactly 10.5 years ago. And from the beginning, we've had an ambitious mission, which was to literally help build a better Internet. And there's actually -- we have something that a lot of other companies don't have, which is we have a video of our launch. And during that video, it was a competition, a start-up competition, and there was a panel of judges and one of those judges asked me what was my goal? And I was looking at this the other day, and I thought you'd get a kick out of my answer. So let's roll that to video. [Presentation]

So obviously, today, I've got a lot more gray hair, hopefully, a little bit more humility. But Cloudflare's team is just as ambitious. We still want to literally help build a better Internet. And we've been really successful at doing that. If you look at the data today, and you look at third-party sources like W3Techs and the data that shows how much of the Internet currently flows through us, it's pretty remarkable to see that already, 16% of the web sits behind our network. We also see other metrics like the fact that of the Fortune 1000, 17% are using Cloudflare and paying for our services. But the stat that blows me away is looking at that same W3Techs data that we are adding a full percent of the web to our network every single quarter. And that's an incredible opportunity, but it's also an incredible responsibility. From the very beginning of Cloudflare's history, we built the company to be optimized, first and foremost, for scale economics, but then also for network effects. We wanted to make it so that as our network grew, as we service more and more of the Internet, as we fulfilled our mission of helping build a better Internet, that our system would get more efficient, and then we will get better and better for all of our customers, being able to deliver more and more return on their investment with us. But importantly, we also wanted to make it such that as more people used Cloudflare's network, the network itself improve, the data fed back on itself. And so every time a customer used Cloudflare signed up for our services, that made all of the other services, all of the other customers that were using our service already, better. An example of that is how we started out protecting the content side of the network. People were putting up information or applications, making sure that those were protected from security threats, DDoS attacks, were always fast and reliable. But increasingly, we're also protecting the user side of the network with products like Cloudflare for Teams. And what's powerful today is that if you are a Cloudflare for Teams' customer working from an office that's connected to our network directly over a private network interface, you can go from your office across that private network interface, across Cloudflare's own backbone, and to any of that 16% of the web that sits behind our network without ever touching the public Internet. The same is true if you're trying to access services like Google or Microsoft 365. And what that means for our customers is that as more and more of the web uses us, as more and more applications use us and as more users are protected by us, the entire system gets more reliable, more performant, and importantly, more secure end-to-end. And that's what we mean when we think we are literally helping build a better Internet. The Internet was never actually designed to do what we have asked it to do. And if you think about our business, it's like turning back a time machine, saying, 40 years ago, if we knew what was coming, could we have designed a better Internet. And that's foundationally what it is that we set out to deliver every single day at Cloudflare. Fundamentally, what Cloudflare is, is a network. When we were picking our ticker symbol, we didn't pick [ CLOFLR ] or something else. We said our ticker should be NET because what we think of ourselves is the next-generation network that provides all the security, reliability and performance that anyone using the network needs today. And that's what we're constantly trying to deliver on. And so on yesterday's earnings call, I talked about how 2020 was such a different year and how there were so many, just remarkable, challenging and also things that we're really proud of that happened over that year. And I don't think that we, as a company, or me personally, we're ever going to live through something like 2020 again. But there were some things about 2020 that were really the same as almost every year over Cloudflare's 10-year history. And in particular, one of the things that was exactly the same is the rate of innovation. If you look at 2020, we released over 550 new products and features during a pandemic. And so one of the most common questions, that I get from investors that I get from prospects who are customers, that I get from people who are interviewing as employees is, how is that even possible? How do you maintain that rate of innovation? And so today, I wanted to spend a little bit of time pulling back the curtain and showing you a little bit about how we have built the Cloudflare innovation machine. I think there are 3 unique things that we do at Cloudflare, that have helped us innovate as rapidly as we have. The first is our unique product and engineering structure, and I'll talk a little bit about that. The second is our especially broad customer base and what that gives us as a way of innovating faster than our competitors. And the third is our really unique and nimble Cloudflare development platform, which we call Workers. And so let me walk through each of those things because the 3 of them together really are what make Cloudflare as innovative and as rapidly innovative as we are. The first is our unique product and engineering infrastructure. Most organizations are set up to have one product and engineering team. And that product and engineering team is set up to think about to talk to customers, listen to what their needs are and then constantly iterate making innovation after innovation, delivering on what customers' needs are. And that's what 90% of our product and engineering team do. And that's what Jen leads our product team and several of the people who are -- she's going to be interviewing, are actually on that core product team. But about 10% of our product and engineering organization is dedicated to something different. And that's what we call ETI, or emerging technology and incubation. And what's unique about that team is that they are not measured on immediate product adoption. They're not measured on revenue. They're not measured on what's going to be happening in the next quarter. But instead, they're focused on what the long-term opportunity is. This team is focused on what is the product that the world is going to slap their forehead and say, wow, I would have never thought Cloudflare would launch that in 18 -- 18 months ago when we actually started working on it. And they are tasked with really dreaming up what the future is. Again, it's a small part of our organization and people roll in and off of that. But it has really formed the basis of how we think about inventing the future. Again, we start with this incredible primitive, which is the network. And anything where we can make that network better, especially if we can make it more secure, more reliable, more efficient, more performant, anything that we can do in that space, we think is an incredible opportunity, and we want to create a fertile ground for that team to really work and deliver great products. I was fortunate enough to have Clay Christensen, the father of the idea of disruptive innovation, as a business school professor of mine. And it was such a formative case and formative set of classes, understanding his theories on disruptive innovation that we really baked a lot of that into Cloudflare. My Chief of Staff and our Head of Innovation today was actually Clay's research assistant for a number of years and helped him write one of his books. And that is really core to what we're doing at Cloudflare. And so we don't want to just make a slightly better product than what we are already delivering, but we want to be thinking about what are those products that are really going to surprise the market and deliver. And the ETI team has done exactly that. If you're excited about our Workers product, that came out of ETI. If you're excited about Cloudflare for Teams, that came out of ETI. What's powerful is once those products do take hold and once they do get adoption, then we graduate them into our traditional product and engineering ward, and then we're able to rapidly innovate and extend them based on what customer feedback is. We love this approach to developing products at Cloudflare, and it's part of what has allowed us to be so disruptive to the industry and part of what will continue to invest in. And so that ETI team, they're going to have some products that don't work, and we want to fail fast when that happens. But every once in a while, we get a Workers or a Teams, and that becomes an incredible engine to expand what our total addressable market is. The second thing that I really wanted to talk about in terms of how Cloudflare is innovative in our product development is how we use our broad customer base in order to develop products significantly more quickly. It's incredible to see how many customers Cloudflare has. And one of the questions we get is, you have all these free customers, what are you going to do with them? The secret to some of our success is that those free customers are one of our secret weapons. They are one of the ways that we actually develop and test products and make reliable products faster and more reliably than anyone else. And here's how it works. Whenever we have an idea for a new product, we actually reach out to our free customers, and we say, who among you would like to test this new feature, which, someday, we're going to have as exclusive enterprise feature. And what's amazing is of the 3 million-plus free customers that use our network, will typically get tens of thousands that raise their hand and volunteer to be beta testers or even alpha testers on these new features. And what's incredible is that creates this QA environment, which is a powerful way for us to actually get products in the hands of real users. This is totally different than how most enterprise companies develop products. If you're a product manager at a traditional enterprise company, and you come up with a new idea, the first thing everyone else in the organization tells you is, "Don't tell anyone, certainly don't tell customers because we don't want them delaying upgrading to their next feature on the next cycle." And in most enterprise companies, a new feature only gets released once every 2 or, in the worst cases, every 3 years. That's a little bit better in SaaS companies, but even leading SaaS companies like Salesforce only do releases 3 times a year. Contrast that with consumer companies like a Google or a Facebook, where they're literally rolling out new code and new features on a daily basis, testing them with their users and then seeing what works and taking that and rolling it out to the rest of their entire user base. We wanted to be more like that. And our low end and free customers are key for us to be able to get that instant feedback and be able to roll out new features faster than anyone else. We were the first ones to have be deploying HTTP/2 at scale, the first ones to be deploying HTTP/3 at scale, the first ones to push the new cryptography standards like TLS 1.3, and we can do that reliably for our largest enterprise customers that pay us millions of dollars because we can test those features first with the vast numbers of those free customers that volunteer to be that testbed for us. That is a unique advantage that Cloudflare has that our product teams love and part of why we can go as fast as we do. The other advantage of all those customers is that they deliver an enormous amount of data. And in a security instance, that's hugely valuable. And so every time we see an attack on any one of our customers, the entire Cloudflare network effectively is one of the world's largest sensor networks. And we often see new attacks emerge before anyone else has seen it, which means that our largest customers are able to be protected before anyone even is aware that a new attack is in the wild. The third reason the Cloudflare is just so fast at innovation is because of the unique development platform that we built, that we call Cloudflare Workers. And a lot of you are excited about Cloudflare Workers because it's something that we're selling to customers. And we're excited about that, too. But the real reason that we built Cloudflare Workers was actually to overcome a problem that we had internally. Back in 2017, we were starting to see our development process slow down to deploy a new feature across thousands of machines scattered all around the world was a slow, clunky and pretty scary process. We would have to build new code, compile it, release it, deploy it. There were multiple teams involved, and we needed to do a lot of checking on that code to make sure that it was safe before we released it out. We knew that we had to create something different. So I remember, with a small group of engineers going to lunch in a little Mexican restaurant with John, our CTO, across from our office in San Francisco and sitting down and saying, "We need to design something different." And literally on the paper place mats that we had, we sketched out how we could build a new development platform that took advantage of unique sandboxing technology to allow any developer at Cloudflare to rapidly prototype and innovate in new technology. It was incredible because we needed to be able to get this technology to safely roll out code all across our network all around the world. And we needed to invent an entire new framework for even making that happen. We turned to technology that had come out of the browser space called isolates, which is really kind of the next evolution beyond virtual machines, beyond containers to what can be a much faster, lighter weight, but still safe place to develop code. And we've built an infrastructure over the course of the next 9 months that allowed our team to, first and foremost, be able to deliver great products at a speed that innovated. And so in 2017, we sort of had a low in innovation. But ever since then, we've been going at high gear. And part of the reason for that is because of this unique developer platform. But we realized when it was so powerful for us, it would also be powerful for our customers. And so we implemented what we internally and somewhat cheekily called the Bezos Rule. And what the Bezos Rule is, is the exact same rule that Amazon put in place when they were developing AWS, which is, any API or any development tool that we build for ourselves and for our own team, we also are then going to make available to our customers. And what that has turned out is that, since 2017, we've been working on what is, we think, the most stable, fastest, most performant, most scalable edge computing platform in the world. And as we're turning it on, our customers are just delighted by what they find because our first customers were actually our internal developers. We've built it for ourselves first. We released all the tools to the public, and it's incredible now to see what customers are building. It's also amazing to see what our own teams are building. Earlier this month, we realized that around the world, governments and municipalities and hospitals were struggling with the problem of releasing the COVID-19 vaccine and scheduling appointments in a way that was fair. And what we needed was a new way to create order out of chaos, to essentially create almost like a virtual queue for people who were trying to sign up for that vaccine. So my -- a small group of engineers and our team realized that this was a problem. They created some code using our Workers platform, deployed it. And today, there are hundreds of municipalities, governments, hospitals, pharmacies around the world that are implementing this technology, and we are taking the ability for people to sign up for the COVID-19 vaccine for something that was super chaotic all around the world, where websites were crashing, to something where the average time from start to finish is now less than 10 minutes in most jurisdictions. That's the power of Workers. That's the power of the Cloudflare network, and that's what we're able to do. So if you take these 3 things, if you take our unique product and engineering organizational structure, you combine that with our especially broad customer base. And then you throw in this unique development system, and you run it on in this primitive, which is an incredibly fast, reliable performant network, what you get is a feedback machine, which is just constantly looking for new markets and new ways to satisfy our customers and deliver more value to them. It's sort of like exponential TAM development across our network. And we're really, really proud of how this algorithm keeps feeding back on itself, so we can enter new markets and disrupt new industries. Thomas is going to share more details on how we forecast what our TAM is today. But even in the 1.5 years since we went public, it's been incredible to see how our product and engineering teams have been able to deliver new products, win new customers and keep growing Cloudflare. At Cloudflare's core, as I said, is our network. And our network is really special. We're today in more than 200 cities worldwide and now over 100 countries worldwide. We're within just a few milliseconds of the vast majority of the world's Internet-connected population. And what's powerful about this is you really can't buy your way into this network. It's a new company that was incredibly well funded, came in and said, we want to actually build a network that looks just like Cloudflare. You can't do it. You actually have to earn the right to be in these facilities. Because most of the time, when we turn up a new city, we're not going into a facility where we're paying for data center space. But instead, we're being invited there by the ISP or the local network that it wants us to be there because we're making their experience better. And we do that in a lot of different ways. We do that by serving a broad set of customers that have a global penetration. We do that by providing really beneficial services like Project Galileo that protects the artistically and otherwise important -- politically important organizations around the world. We do that by the Athenian Project that protects the voting infrastructure around the world. We do that by Project Fair Shot to make sure that people around the world can get a fair shot at the COVID-19 vaccine. But we also do that by providing technical services that make the Internet work. And one of the areas, we don't actually talk about a lot publicly, but it's been incredibly important to us, has been our protection of 2 of the core root servers of the Internet. It turns out that when the Internet protocols were first being laid down, there were 13, what were known as root servers and these aren't individual servers. These are organizations that are responsible for the kind of core of the Internet. There were 13 of these organizations that were specified. They're never going to be more than 13 because that's the maximum number that can fit in the packet. And they're sort of a quirky group. The University of Southern California and NASA and University of Maryland, all were sort of these initial groups that were assigned to be one of these root server operators. And today, it's really difficult and it's challenging to change up who those operators are because it's become a very political process. And what's powerful is, Cloudflare actually runs the infrastructure for 2 of the 13 root server operators. And those are 2 of the fastest root servers that are out there. This is E and F. When you type in an e-mail or you go to a website or you do anything that touches the Internet, chances are you have to interact with 1 of these 13 new root servers. And generally, you pick the fastest, too. Because the fact that we run 2 of the fastest means that we are at the core of that. If you think about it, if you think of a domain like www.google.com, Google gets to say where WWW points. Verisign, which runs the dot-com domain gets to say where Google points. But the root servers are good to say where the dot-com itself points, which means that every single thing that you do on the Internet ends up touching those root servers. So what does that matter? We don't make a lot of money off of that. It's not something that is flashed in our marketing. But if you're an ISP around the world, and you're trying to make sure that you have the best possible performance, one of the things that you can do to make sure that's the case is make sure that you've got a root server running somewhere on your network. And what's powerful is that if you work with Cloudflare and you let us deploy our equipment in your network, then that means that you not only get a root server, but we, in turn, get the ability to offer our security, reliability, performance services on that same infrastructure. Because one of the things that we did that allows us to scale as efficiently as we have is actually putting all of the software that we run and making it run on every single box that makes up Cloudflare's network. That's part of our secret sauce, and it's why we continue to grow our network and why, counterintuitively, as we turn up more dots on our network, it doesn't make our costs go up, it actually drives our costs down. And that's part of the advantage, the fact that we are already in over 100 countries around the world, lets us continue to deliver our services for that vast global audience in a way that's incredibly difficult for anyone else to replicate. When we look at those 2 things, how we develop products, how we develop our network, it really creates 2 interlinked flywheels. The network flywheel means that as we serve a bigger audience, as we provide more services, we are invited to be in more and more networks around the world, we're able to drive down our costs, and that helps us deliver more ROI to our customers and be able to deliver better and better services over time. The interlinked product flywheel does the same thing, but with products, where because we're serving that global audience, we're able to better develop a broad range of products that use our global network and then are able to be delivered across that network at an incredibly effective rate because of how efficient our underlying network is. This is a super exciting time for us to continue to accelerate that flywheel, and that's part of what really drives Cloudflare forward. What's also unique about Cloudflare is how we think about going to market. The first thing is that -- it's a little, it's not unique at all. Frankly, if you fast forward 10 years from now, and you look at our go-to-market team, our sales team and our marketing team and everything else, it probably would look exactly like you would expect from any other enterprise sales organization. We'd have field sales -- leaders. We'd have named accounts. We'd have all of those things. And we are building that process out and bringing on-board those leaders that can really take us over that journey. But there are a couple of things that are really different about what it is we do. The first is we are a developer-first organization. We build products for developers first. And the second is we're an incredibly data-driven organization. And those 2 things really make it so that our go-to-market motion is actually a little bit different and how we build it over the next 10 years will be a little bit different. The first is that because we are a developer-first organization, we build products, first and foremost, for developers. And what do developers want? They want to have APIs to control all of their products. So in our dashboard, right on every single page, there's a link to the APIs that control every single function across Cloudflare. They want to be able to sign up and kick the tires without having to talk to a salesperson necessarily and only call a salesperson when they're really serious about having seen something. They need great documentation. And so all of these things are things that we prioritize. And what's powerful is, as you look across a company from our earliest days, the vast majority of our users have been developers. And those developers are becoming more and more influential in IT organizations. The other thing is that because we already have a relationship with those developers, when we launch new products like Cloudflare Workers, then very quickly, we're able to address them, get in front of them and being their trust in a way that is harder for other platforms. I'm super excited that, last quarter, we had 50,000 developers write their first -- write and deploy their very first Cloudflare Worker. That doesn't mean just sign up for an account, that actually means write code and how to run it. What we're even more excited about is that we're just getting started. I can see a time, not so far from now, where over 100,000 developers we'll be signing up for the Cloudflare Workers platform. And as Aly is going to talk about, our goal is to make it so that every single quarter, 300,000 new developers are signing up for the Cloudflare Workers platform and deploying actual code. That's incredibly exciting. And again, I think it makes our products better. It's also important that because we make the product self-service from the beginning, which developers really care about, turns out the big enterprises care a lot about that, too. They don't want to have to waste their time talking to support if they don't have to. And so by being easy to-use, as you're going to hear from our customers over and over and over again, that's one of the key benefits, which is causing us to win customers time and time again. The second thing, which is unique about our go-to-market strategy is how data-driven it is. When we go into a new vertical, say, pharmaceuticals, or we go into a new geography, say, Paris or Tokyo, it's not because we think, wow, there's maybe some opportunity there. It's because we already know that we have lighthouse customers on the ground that are willing to be our advocates. Most organizations go to market by starting with marketing, then adding sales and then eventually getting customers. We flip that on its head, where we get customers early on, get those lighthouse customers, get those reference customers that often are early adopters, sign up because they're developer-led organizations and become our real advocates. What's powerful as we can often reach out directly to those customers and say, "Hey, we're going to hire a Director of sales in France, who would you like to work with?" And they'll often refer customers to us, which you can imagine, creates a real culture of success for those first salespeople that are landing in a new geography. And then only after we've got those lighthouse customers, we've got those case studies, do we then augment that with marketing. By doing that, we still end up in the same place. I'm not here to tell you that we don't need salespeople because it turns out if someone's going to spend $10 million a year with us, they want to be able to pick up the phone and call someone when something breaks. And we want to be able to support them for that. But what we are going to do is, as we continue to build out our go-to-market functions, I think we're less likely to make a mistake because we are so data-driven in that process. And that's something that, I think, is a real differentiation as we think about it. And so, over time, you will see us build out what is a world-class go-to-market team, and we've already got great leaders who come from great enterprise companies. And that's part of how we continue to grow our enterprise business as the fastest segment in our business. And Thomas is going to break down that, and I think you're going to be pleasantly surprised to see how these largest customers are the ones that are growing fastest across our network. So I'm incredibly proud of everything that we accomplished over 2020. We helped hold the Internet together when the world needed it most. We were there for our customers when they were at their most vulnerable, when a lot of them were struggling. We made sure that they can continue to function, make sure that their teams will continue to be productive, make sure that they can continue to reach their customers all over the world and deliver that -- those services. But I'm equally excited for what we have in-store for 2021. We're not slowing this innovation machine down. We're already planning a series of weeks, a series of new product developments, and we think that we can actually accelerate, in 2021, that rate of innovation as we just continue to develop what we're delivering to our customers and the success that we have over time. So thank you so much for tuning in for Cloudflare's Investor Day. I'm going to be back at the very end to answer questions with the rest of our team. But now I'm going to let a video roll of some of our customers and then turn it over to Michelle, who's going to interview some of our great customers who will talk about why they chose Cloudflare, what's different about our products, and what they're hoping that we'll build in the future. Thank you so much. [Presentation]

Great. Hi, everyone. My name is Michelle Zatlyn. I'm the President and Chief Operating Officer of Cloudflare, really honored to be here today. Continuing the conversation, we just saw some of our customers in that video. Now we're going to continue that conversation today live with a customer panel. And so I really wanted to start by letting each panelist introduce themselves. If you could just share the company you work at, your current role and some of your responsibilities, so we can all get to know you a little bit better. And so [ Aaron ], can we start with you?

Sure. My name is [ Aaron Behringer ]. I am the Edge Architect and Manager of the [ Edge Technologies Group ] at Garmin International in Olathe, Kansas.

Great, Jeffrey?

My name is Jeffrey Harker. I'm a cloud system Manager of Cloud Engineering at CommonSpirit Health.

Perfect. And Alok?

This is Alok Kumar. I'm the Chief Information Security Officer for the Retail and the Payment division within NCR. I also head the security architecture team in NCR and NCR is a payment financial, retail and hospitality business unit. So I'm heading this 2 of the security business unit based in Atlanta.

Terrific. Thank you. Now that we know you all a little bit better, thanks for sharing that. I want to go back to the beginning, and I was hoping that you could each share how you first heard about Cloudflare and why you originally adopted the service. And I thought, Alok, we could start with you.

Sure. Yes. So I go back with Cloudflare almost 1.5 years back. We had a business case where we kind of stumbled into and starting to look at -- we were getting some brute force in one of the business unit. So this was a challenge for us, and we went in and started looking at what can we do, right? And as you know, this was a quick thing that we needed to do and then doing any updates in the data center takes time. So we looked at few solutions. Cloudflare, we talked to Gartner, we talked to [ Ions ]. We talked to -- there's a few other industry security consulting company. We talked to them, did some googling also to see what is out there. We realize the best architecture would be -- is to route the traffic through a cloud solution that will scrub the traffic and bring it back to the data center. So right, that's the architecture we wanted to do. And we looked at few and Cloudflare popped up there, right? And in those days as Cloudflare was not public, like it was a private company. So we went through some discussion we had some demo, and we liked it. So we turned around and did some POC real quick, like 24 hours, we did a POC. And we saw the value of it, right? And then within, I would say, 2 to 3 weeks, we just went live with one option and see what we can do. And we liked the product, and then we build it from there, right? So that's how the journey with Cloudflare and NCR started. We have grown into a different business unit, and we have been using it heavily in different business unit for different use cases.

That's great. Thank you. We'll get to those. I'd love to hear more about that. Before we get to that, let's hear about some of the other places where our other customers started. So maybe, Jeffrey, you can go next.

Back in 2017, we experienced a distributed denial-of-service attack. And at that time, the network routes here in through our data center. And so we needed to do something about that. There were some mitigations in place. But unfortunately, with denial of service had overwhelmed the front-end circuits that led into the data center. So a lot of the mitigations were not useful in a situation like that. And actually, our SVP's son had heard of Cloudflare and suggested that we look into it. And we had all heard of Cloudflare, but I was more familiar with products like [indiscernible] and some of the other competitors. We used the link on the website, that said I'm Under Attack. I had them on the phone over a weekend, within about half an hour and we started our journey. We completely remediated the denial-of-service attack, we moved the network routes out of the data center to cloud native, and we haven't had a distributor denial-of-service incident since. So Cloudflare has been very, very good for us, and that's how we began using their product.

Good. So we often talk about the large audience. So I have to say thank you to your SVP's son for suggesting us, recommending us. That's good.

One of the other benefits we received is we got about a 40% boost in performance the night we went live because of the transparent CDN and a lot of the performance features we've been able to layer on also. So there's been a lot come out of our relationship with Cloudflare other than pure security benefit, which has been profound in our case.

That's great. Thank you for sharing that. And then, [ Aaron ], would love for you to round it out, just back to how Garmin started to use Cloudflare and how you originally heard about us?

Sure. So we've been with Cloudflare now for 2.5 years. And our previous CDN provider, the time to push any changes was 30 to 45 minutes and quickly identified that, that was not something that was a good option for a company that focuses on being so agile. So we did a POC with Cloudflare, I had heard great buzz about them. And we moved 200 web properties with the assistance of Cloudflare in a month, and it's been great ever since.

Great. Thank you. I love how all 3 stories are different and really appreciate you all sharing that. So now let's fast forward to today. Can you share a little bit more about -- we understand better about how you started using our service. Can you share more about what you're using Cloudflare for today and how that's evolved? As well as any sort of value that you're seeing in each of your businesses? And Jeffrey, why don't we start with you?

So we have a fairly robust plan in multiple phases to deploy additional Cloudflare functionality. One of the big challenges that we face is the sheer number of apex domains that we have across the entire enterprise. CommonSpirit was formed out of the merger of Dignity Health, where I came into the picture and Catholic Health Initiatives. And collectively, we have 5,000 or 6,000 apex domains, we're gradually moving all of those to Cloudflare's DNS, that's authoritative DNS to get -- wrap some operational sanity around managing all of our endpoints, securing them and having shared optics and so forth. So a lot of the benefits we get, we're able to integrate Splunk into Cloudflare. And so our cybersecurity incident response teams are able to see all of the various things that happen in Cloudflare and respond accordingly if they see any evidence of penetration. So we're doing a lot of work right now to consolidate all of our domains and our network endpoints into Cloudflare, protect them with Cloudflare security and take advantage of a lot of the advanced functionalities and features in Cloudflare for performance optimization. We're also using Workers extensively to support large numbers of redirects across our various web properties as we move from various big peak CMSs into common CMSs. There's a need to protect the network routes that people might actually have shortcuts on their desktops, and we're able to use Workers to do that. So that's now where you see it today.

And maybe, Alok, we can go to you next.

Yes, sure. So yes, what started was just one use case with one business unit where we did that and we were able to reduce the brute force attack to 90% incidentally, right? So other 10% was we had to massage free of the rules and bring it down. Of course, you can never do 100%, but we came very close to that. Then it was -- the value-add was so much that we actually have moved on 600 domains, believe it or not, through Cloudflare, the entire data center through Cloudflare, and we have removed the perimeter security we had, of course, the firewall is there, right? We don't need a WAF, we don't need DDoS protection, right, in our data center. We don't need [indiscernible]. I guess, we do have it there, but you really don't need it. It all goes through the cloud, and we have restricted traffic only coming from Cloudflare into that particular data center, right? So that was one big use case, a big win for our customers also, right? Another use case that we have started working on is a credit card tumbling attack, right? So we were seeing that in a different business unit. We got -- we stumbled -- we kind of hit a roadblock there, right, with Cloudflare in the sense that it was coming through a gateway IP address. So there was a single IP address and Cloudflare, at that point, could not parse the source traffic. So then we started looking to Workers. Now we have written so many Worker rules. We have gone deep into the actual packets. And we look at like if Mastercard has a penalty if you have declined same credit card 20 times in 24 hours, they start charging penalty, right? So that's the rule we build it. If you see 20 declines from the same credit card because, as you know, credit card tumbling is they have the credit card, the hackers have the credit card number. They have the expiry date. They don't have the CVSS code. So that's what they do, [ 1 2 3, 3 4 5 ] right? That's how they start hacking into and that same credit card number gets thousands of times hit. So that, with the Workers, we have been able to control that very well. We block it after 20 attempts, right? You're done for 24 hours, like kind of say. So we have massaged that to stop the tumbling attack, which helps us a lot in many business unit, right? So that is one use case that we have started to use now and expanding to that. So 2 big use cases that we have that really -- and now we are looking into more options. But yes, these are the 2 big use cases I can bring out, which really helped us.

That's great. Thanks for sharing that. We often talk about moving the compute into the network with Workers, and we're going to hear more about that at the product panel next. Aly is sitting, one of our product leader for that group. And so it's just great to hear how you've been able to stop -- a really significant use case for your business. And a relatively, I would say, simple way, elegant way, which is exciting as a technologist to hear. Thank you for sharing that. All right. [ Aaron ], how about at Garmin. We know we understand where you started. How has our relationship evolved? And maybe what are some of the value that you're seeing at Garmin from an ROI perspective?

So we are currently sitting at around 1,700 sites -- Garmin sites that are on Cloudflare right now. A big portion of our business is actually in China. And what we moved from our previous CDN provider to Cloudflare, we had a several hundred percent speed increase because of your partnership with companies in China to be able to offer CDN services. So we have our data center in China as well. Previously, it was traversing the great firewall multiple times with our old CDN provider and with Cloudflare. Our customers actually wrote in letters, thanking us for whatever we did. They didn't know what we did, but they know suddenly all of their downloads are a lot faster when we switched over to Cloudflare. And it was a pretty big win for our team. Also, we're relying on the edge Workers Platform quite a bit for some of our aviation services as well as a few of our web services just so it doesn't have to go back to the data center quite so often. If we can do as much as we can when it comes to edge compute, we definitely will try. And it's been a big game changer for a lot of our companies that we have as well as our web properties. It's been wonderful.

That's great. That's great. Thanks for sharing that. So one of the things that we often hear from our customers is, "Oh, wow, it's such a high pace of innovation." We're shipping -- we do a lot for our customers. We're shipping a lot of new things. And we always love to hear what else we can be doing for our customers, especially as we try and prioritize. And so we understand where you start to use Cloudflare and how you're using in each organization. As you think about what else Cloudflare could do for you, or what else you wish we could do for you, what are some of the things that come to mind? And Alok, why don't we start with you?

Yes. So a few things, right, come in mind. So this all is data center protection is what we're using, right, coming inbound into us thinking more since you have the CDN network, you have the technology, and you have the concept. Clearly, we might look into how do you want to do outbound also from a company going up, right? So it's turning out to be a boundary-less network now, right? So I mean there's no perimeter anymore, right? So if you're working from home right now, everyone is working from home, there is no intranet or internal network, right, for a company. So if a person goes home, the security should follow, right? The resource or the laptop or whatever the company has assigned to that resource. What can we do to protect that resources when whether they are sitting in an office space or they are at home, the security should be same, right? So what technology we can use, where Cloudflare can help to provide that, right? From going out and secure DLP, right? The web gateway, stuff like that. Again, you guys already have the technology, right? You do it, but it's coming into the data center, how can we do that going out to the client, into the world to the cloud? That is something I'm looking for from Cloudflare if they can come up with something like that, that will help us.

Great. Thank you. I won't spoil it. But yes, thank you for sharing that. All right, Jeffrey, how about you?

Cloudflare has phenomenal technology. But on the administrative side, there are some things in usability in terms of the administrative interface. As we scale through large numbers of domains, it becomes harder and harder to look at a large flat alphabetized list of domains and find what you need. We have different categories of domains. We have a series of enterprise domains. Those are fully licensed and have the WAF and so forth. But we also have things like brand protection domains that are basically part. We have vanity URLs that were lit up for marketing campaigns and basically, are nothing more than redirects or potentially 1 or 2 entries to marketing services, things of that nature. Those are not all equal. And so seeing them in a big flat list is a bit of a problem. And I think it would be very helpful if that was segmented into categories so I can manage them independently and potentially, even have different people manage them. We do have some portions of the enterprise. We grew through acquisition and merger. And so we have some portions of the enterprise that want to be able to maintain their own apex zones. And they don't necessarily want people in other parts of the enterprise to be able to manage those on their behalf. So having more flexibility around that and more power and a little bit better user experience, I think, is an area where you could productively make some investments and really improve the product.

Thank you. We definitely want to empower all of you and your teams to be able to get the most out of our technology. So that's something we definitely hear. Thank you for sharing that, Jeffrey. And [ Aaron ], how about you?

So in the past year, we focused a lot on implementing Magic Transit at a lot of our data center locations. We don't have as large of a cloud presence. We're usually mostly our own data centers. And we're always looking for opportunities to be able to save money when it comes to infrastructure costs and something that we definitely have requested of Cloudflare to pursue would be the private network interconnects, so that we're traversing ingress and egress traffic over your existing backbone. We have probably over 100 offices worldwide. And being able to create an interconnect and savings on this infrastructure costs would be a huge win for Garmin.

That's great. Thank you for sharing all of those. We want you all to be happy customers for a long time. So trust me, we're all listening in, our product leadership team is here today. So they're definitely listening, too, taking close notes. So again, we want to be happy customers. I hope we can come back a year from now, and you can say, "You remember that request I had a year ago, it's gone. We've done that. And we're even happier customers." That's my goal. So the last thing, and we hurdle a couple of the Workers use cases. I mean Workers is an area that we're just very excited about. Again, moving more of the compute into the network and how customers are using it. And I know you've all shared a couple. But maybe we could just end by sharing any other Workers use cases or what you're hearing from your developer teams because that's an area that the audience is trying to understand how do companies actually use, take advantage of Workers. And so maybe we could just end by hearing a little bit more about that. [ Aaron ], do you want to start?

Sure. So probably about 20% of our web properties are actually utilizing Workers and some of the things that we've been looking at, native database integration is a big one for us, just because some information we want to still keep in our data centers and being able to call those databases that are owned by Garmin is definitely something we're interested in pursuing. There's a few other Workers limitations when it comes to KV size and stuff like that, that have been -- we've ran into some roadblocks, but I have a feeling that you guys are going to be addressing those sooner than later. But the platform has been fantastic.

That's great. Thank you. And Jeffrey, I know you shared some. But anything else you want to add on the Workers front specifically?

We're looking at additional scenarios we want to line up there. There are a number of things where we are dependent on third-party services, and it makes little sense to have our origin servers directly calling to the services when we can move those capabilities to the edge. I'm thinking specifically about things like geolocation services and things like that. We have a fairly robust set of location APIs. Trying to move some of that stuff on to the edge and get it off of my origin servers. There's really no reason the CMS platform needs to be involved in that at all. Just like redirects, CMS does support redirect functionality, but it has to go all the way back to origin to use those features. So it makes a lot more sense to unload that traffic and move it to the edge. And so where we can do that, we're starting to do that more and more.

That's great. Thank you. And finally, Alok, do you have any -- I know, again, you shared some, but anything else you want to highlight on the Workers side?

Yes. I mean, that's the one we're looking at right, right, right, for card tumbling attack. The thing with Workers is you can do anything and anything -- everything you want to do, right? I mean, it's getting into the packet and then come up with your logic, what use case you have. I'm pretty sure there is a way to manage that. And then if you don't want a particular traffic, you can block it right there or let it go, right? Or rewrite, whichever way you want, right? I mean that's the power of Workers, which was really amazing when we started working on it in first phase, we didn't, until we got into a roadblock then we start looking into it. So this is really powerful. So for any customer who has even any use case, and where a packet needs to be read, I mean Workers can be used to look into that packet and then try to decide the business logic, whatever they want to pursue, right? So that's the power of -- so I mean, right now, that's all we are doing, but I'm sure there will be more coming up that we will be using Workers on, which we found very, very powerful.

That's great. Good. Well, best point of my job are getting to work with our customers as well as our team. So I really appreciate you taking the time today to share some of your experiences with Cloudflare, with the audience. It's always great to hear from our customers. We really appreciate your business. So thank you so much for doing this with us today. And now we're going to turn it over to Jen and the product leadership team to hear about how we build all these products that we just heard about from Alok, Jeffrey and [ Aaron ], and what else you can expect from us going forward. So Jen, over to you. [Presentation]

Thanks, Michelle. I'm Jen Taylor, Chief Product Officer at Cloudflare, and I'm joined by 3 of our product leaders to talk through our roadmap and our approach to building products. Can you guys introduce yourselves, please?

Sounds great. Thanks, Jen. So I'm Aly Cabral, I'm the Director of Products for our developer edge platform, which is topically evolving. Now this includes Workers, Workers KV, Durable Objects and Cloudflare Pages.

And I'm David Harnett, and I'm Director of Product for our zero trust platform, that includes Access and Gateway and browser isolation.

And I'm Rustam Lalkaka, I'm Director of Product for our networking products, including Magic Transit and Argo Smart Routing.

Thank you, guys. I'm actually really happy that this panel follows the customer conversations because customers, be they individuals, developers or chief security officers of Global 1000 organizations, are our inspiration. Their complex problems are the jet fuel for our innovation. Our mission is to help build a better Internet, that is one that is more reliable, secure and more performant for everyone. When people ask me about product at Cloudflare, I always start with the network because it is the foundation of everything we do. We deliver an integrated best-of-breed platform and suite of solutions on top of our globally distributed edge network from over 200 cities worldwide. One of the most unique aspects of this network is actually the fact that every machine in every data center runs the exact same stack, which makes it incredibly flexible and fast and delightful to deliver and build products on our platform. Now Rustam, as Director of Product for our network, how do you think about this?

It's really the key thing that underpins everything we do. And we, from the start of the company, have invested in building out an infinitely scalable network deployed on dumb commodity hardware that uses really, really smart software and lots of data to build products at sort of unimaginable speed, both from a day-to-day performance perspective, but also from an idea to shift perspective. That scalable platform that we've built for our own developers, let's us launch new products super quickly and go from 0 to the largest customers in the world in the blink of an aye. It allows us to operate sort of super cost efficiently because we have a lot of flexibility in which resources go to which products. And as we get larger and collect more and more data, all that gets sent back into that platform. We think this is -- our network is impossible to replicate. And there are network effects on network effects here. And I'm sort of -- we're just getting started, and I'm super excited to see what the future holds here.

It's such an amazing kind of Workers flywheel and so many different dimensions that like I'm really kind of excited to unpack those with you all today. The first is basically one of the best things about running this huge network is we run into all sorts of problems all the time. And our strategy is to build the tools that we want to use and then turn around and make them available to our customers. This is true of the platform that we also use to build the products on top of the network quickly. We call that platform Workers, and we make it available to our customers. Aly, can you talk a little bit about our strategy around Workers?

Absolutely. On Workers, we're really focused on solving developer problems. And our internal developers look a whole lot like external developers in the wild, right? So we get to solve our own problems across product building across Cloudflare and have those problems kind of be applicable to the larger market. So that's really fortunate for us. So Workers is a serverless model that has production readiness baked in. We really get to take advantage of that network you were just talking about, Jen. So when you deploy, for example, all of your functions, when you deploy a Workers to all of Cloudflare's 200-plus data centers across the globe, automatically, right? So you have that scale, if you need it, to take advantage of on day 1 without any extra add-ons, any expensive choices that the developer needs to make. Now we have to take advantage of all of the building blocks Cloudflare have had to build up over 10 years of making the web faster, more reliable and more secure. So that really gave us a head start here. Normally, as a developer, the application you write to get something working for yourself locally, looks a whole lot different than the application to serve 100,000 users, maybe 1 million users. And that's not because the business logic itself, what the need of the application has changed. It's because everything around it had to be built out. Like the scaling story, like how do you make sure you're optimizing the performance for your global audience. Just all of that requires a lot of thought. And normally, that takes quarters, years for teams to rally around to get something out the door. So Workers really solves this problem, both for us internally and externally by taking advantage of that network.

Okay. But we're not the only serverless game in town, right? I mean, like why are developers choosing Cloudflare Workers over other platforms that are serverless like Lambda, AWS Lambda and the like?

It boils down to 3 things: developer experience, first and foremost, performance and cost. Now with developer experience, we talked about how we have that production readiness baked in. That's a whole lot better than other developer experiences across the platforms. And one example of this is Bazaarvoice, who needed to serve a global audience. It wasn't enough to just think about North America for them. They had customers who'd -- like Target and Sephora, who themselves have global users that need to have a good experience regardless of what geography you're in. And they could have done that on a comp provider, but that would actually require them deploying different versions of their infrastructure to each of these regions and managing that themselves. With Workers, when compared to AWS Lambda in this case, it became obvious that we weren't the simpler choice, that's what just worked for them, like they didn't have extra work on their plate to get their use case up and running. And performance and costs are similarly compelling when comparing to these other cloud providers.

That's awesome. You just mentioned Bazaarvoice. You have hinted a little bit at some of our own internal use cases, but what are people building with Workers today?

Now, there's no single answer here. There are so many examples across the spectrum. Last quarter, we have had over 50,000 new developers writing an application for the first time on our platform, right? So there are tons of use cases across the gamut of possibilities here. And we have an aggressive goal of getting that up to 300,000 new developers per quarter, writing applications on our platform. So these aren't people who are just signing up, not deploying codes. These are people we know are actively deploying code on our platform. Now there are couple of buckets here. I mean, touch on 3. The first one is making Cloudflare more powerful, so other Cloudflare products more powerful. An example of this is where Workers was used to make access even more powerful by allowing users to customize security signals on top of our mutual TLS solution for very fast relocation. And that's just an example. We have a whole class of Workers' use cases that are about complementing the rest of the Cloudflare products for maybe more specific uses that don't make sense to bring in to the products themselves just yet. And then the second case, very big bucket, is applications. People building their entire applications end-to-end on top of the Workers platform. An example is ML inferences directly on our edge that decide or that are detecting what images are -- have like a specific object in them. And the other one is, this online education platform that built their entire user management system directly on top of Workers. Now 2020 was the best year for online learning, and they needed a platform that scaled automatically with them and their team. So we were the obvious choice there as well. And of course, there are own apps with Workers that we built with Workers, whether that's Access or the Waiting Room, these critical projects built with us on day 1.

Awesome. It's so exciting to hear about all of the things that Workers enables and unlocks for us. And unlocks for the community. We have talked a little bit about kind of how some of these are developed. But David, I want to turn now and talk about Access and talk kind of from your perspective, kind of the why behind it. We talked about Access. Access effectively was the cornerstone of our Teams products, our zero trust solutions. Can you tell us a little bit about access and that Teams journey?

Absolutely. And it's great that I'm following Aly and Rustam because we're built on Workers and on top of our network. So that gave us a lot of speed in starting off this product suite. So let me talk a little bit about the genesis of the product Access, which has now become the basis of our zero trust suite. We built Access to replace our own VPN. As a company that was going global and that has the workforce that are distributed, we're also a company that uses SaaS applications and internal applications in the open Internet, so we had an issue with really the user experience and the cost of our own VPN, and we wanted to take that out and replace it with something better. So we started Access. Built on Workers, we had it up and running in a matter of months. We had it rolled out to our organization, which gave us a lot of really good data on how that product was working worldwide. What we did then was we offered that product to our customers, and we call them our Cloud edge customers who are already working with our cloud. And it just took off really quickly there. It was an obvious product to add on to our existing customers. Then what we did was we looked for some anchor products that we could really go -- anchor customers that we could really go on the journey with and that helped us then build out that platform really as a zero trust platform. One of those anchor customers was a pharmaceutical company. That started off with a very small amount of seats. Access is a great product for land and expand. We see that we land in a department in our customers and then we expand to the whole company. So with that pharmaceutical space, we landed in a department, and now that deployment is actually over 50,000 seats. So that was a very good learning experience for us. We were able to add features for that pharmaceutical company. Then we also moved on to different verticals. We had some anchor customers in the financial services space. We have anchor customers in the manufacturing space, and that helped us really grow that product, but grow it in a way that we were adding features that would expand the market.

Okay. But you've taken Access and not just expanded the product and expanded the feature set, but you've expanded it, frankly, from Access, a product, to Teams, a solution for zero trust, effectively in less than a year. Like how did that vision come together? And how did that product portfolio come together and get into market so quickly?

Well, again, it was really driven by customers. So after our Access customers have made an investment in setting up rules for their employees to access internal applications, which is where Access started. It started as a product that will protect internal applications, give the best user experience to access those applications from anywhere in the world and give it in a very, very secure way. So after those customers started off with internal applications, they said, "Hey, our threat surface area is a lot wider than this, this is a lot broader than this. All of our employees that are now using Access, access the Internet, the open Internet, they also access SaaS applications. So we've now made an investment in our internal apps. We've set up our rules. We have all our logs in the one place. Can you now give us a product that will cover those 2 other areas?" So what we did was we launched a secure web gateway, which is our product called Gateway. And then we acquired a company that I actually came with in the browser isolation space that is integrated into our Access and Gateway product itself. So one of our anchor customers there is actually a telecom customer that was using Access. And was using Access through our pay-as-you-go service, which is, they found it themselves, they set it up via the web, and then we noticed this because we were looking through our data, we have some triggers in our data insights tools that we use internally that tell us if customers are using our pay-as-you-go product in interesting ways. This was a very, very interesting one. That telecom customer then became a contract customer. They went up to tens of thousands of seats. That same customer now is evaluating our secure web gateway. They actually made a purchase for a department. They're evaluating it for the entire company, and that's over 100,000 seats.

That's phenomenal. Okay. So let's make it clear. David is not the only person here who gets to have a lot of fun around innovating, right? We're not just innovating at the application layer, it's across the whole stack, right, Rustam?

The whole stack. Zero trust for applications is the future, and it's great, and our customers are super excited about it. But all of our enterprise customers still run giant IP networks. The enterprise networking suite that I look after is a bridge from traditional network architectures to the zero trust network of the future. And the combination of our zero trust products and these enterprise networking tools is what we launched last year as Cloudflare One. Magic Transit, a part of that suite is a cloud-based solution for protecting and accelerating enterprise network traffic. And the pharma company that David was speaking about earlier, loved our zero trust products so much, they've gone all in on using Magic Transit to protect their isolated network. Just one example is sort of land and expand in sort of cross-product collaboration opportunities available. So think of Magic Transit as a batteries-included product for enterprise networks to connect to the Internet, public clouds and other data centers. It moves IP traffic across Cloudflare's WAN quickly, securely and reliably. So if you think about an IT admins' higher gig needs, their equivalent of food and water, the most basic of needs, is water for cooling, power, connectivity to the Internet and security. I say Magic Trends is batteries included because historically, you have to source all those things separately, plug them in together, long lead times, huge pain to manage. With Magic Transit we provide connectivity and security together as a service and sort of satisfy 2 of those core needs right off the bat. We've seen really strong adoption because of that, and because we're just getting started, our roadmap is really exciting.

That's fantastic. But Aly, we talked a few moments ago about sort of what is fundamentally the Cloudflare advantage for Workers. And it seems to me that fundamentally by choosing to build on top of this network and the core capabilities that you had at your fingertips, that many of the challenges that the developers face today in building serverless applications are solved. Okay. But what are the complicated bits that remain in order for David to be able to build his next-generation of applications and offerings?

Well, there are 2 huge opportunities for our team. One is developer experience and the other is data storage. So when it comes to developer experience, the market has made it obviously clear that the cloud providers aren't going far enough, right? We've seen, entire companies built on top of the cloud providers to make it easier to build around specific use cases. Now we see a huge opportunity here to structure our platform with 2 key pillars: the foundational building blocks, but then also the opinionated services. And with opinionated services, we started with the launch of Cloudflare Pages, an easy and powerful way to bring websites -- to build websites from the ground up. And we're in a good position for that to be the entry point funnel into the rest of our development platform. And additionally, just due to a wider range of applications, we need to build out more foundational services, specifically in the storage space, that data storage piece that I talked about in the beginning. So today, we have Workers KV, which is our global key value store, which is good. It's a really great global -- globally accessible key value option. And then we also have Durable Objects, which is our strongly consistent distributed stage. Compute is easy. The real differentiator is us building a distributed storage solution at scale. And coming from MongoDB, I'm very familiar with the wide range of data use cases, and I'm incredibly excited to tackle this case.

I think one of the really, really interesting opportunities there is actually around data localization and data sovereignty. More and more of our customers are confronting patchwork of regulations in different countries, even different states around the world. And the fact that our network is everywhere and our storage products are everywhere, makes it really straightforward to solve those sort of micro compliance obligations in a really seamless way.

Absolutely. We've started that with Durable Objects in jurisdictional restrictions. And I'm excited to expand that even more.