2017 Prediction: Google Will Acquire CloudFlare

We have a few more predictions to go for 2017. Next up is Google and CloudFlare. We predict that Google will acquire CloudFlare in 2017 for $1.5B to $3B. CloudFlare has raised a total of $182M and Google was an investor in the last round of financing. As of 9/30/16, Google had $83B in cash and short term investments, so $3B isn’t out of the realm of possibilities. The reason we believe this will occur is because Google needs CloudFlare to compete against AWS and Azure.

As of today, Google is in 3rd place in content delivery, behind AWS and Azure. On top of that, Google and Azure have no Edge Security story, which is the fastest growing segment in the CDN industry. AWS has an Edge Security story, but they’re still in the crawling phase. By acquiring CloudFlare, Google will leapfrog AWS and Azure in CDN services and Edge Security. There is no other CDN in the world that can help Google fight the competitive cloud wars better than CloudFlare. Google might not even know it, but they will eventually come around and see the value in CloudFlare.

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6 thoughts on “2017 Prediction: Google Will Acquire CloudFlare”

    • Today, CloudFlare is protecting 5M sites and signing up 10k per day (last time I checked). In July 2015 they were delivering/protecting 2M sites and processing 4M log lines per second. At 5M sites, the number of log lines being processed more than doubles. Thus, they process more logs than Akamai and all other CDNs. Logs = data and data is the most important piece in AI, so its a perfect fit for Google AI, which can be used in security. Another accomplishment – CF is providing WAF and/or DDoS to 5 million sites. They have rebuilt their WAF + DDoS Mitigation infrastructure to deal with massive volumes – I don’t think there is any other CDN that can protect that many sites, without having to rebuild everything from scratch. Conclusion – CloudFlare is a winner in volume like the # of customers, sites protected, log lines, data, etc and the infrastructure to protect that volume. Google is volume company and they want to own the worlds data.

        • Incapsula is part of Imperva – a billion dollar security company that sells a lot of enterprise security products to banks and government agencies. Not a good fit. IBM is a much better fit.

          In regards to Akamai 1) Akamai is too expensive 2) Google would fail integrating Akamai 3) Akamai customers would abandon ship on Google. Google’s MO is to buy companies, gut them – as in firing a bunch of employees, and then integrate the technology.

      • Do you know the percentage of Cloudflare customers that are paying? Most of these 5M sites might be freebies with little or no traffic and low value in terms of logs/data.

        • From the top of my head, 4% to 7% are paying customers. Fourteen months ago – they processed 4M log lines per second. Today, its likely more than 2x to 3x of that. In aggregate, log data for 5M sites would be extremely valuable.

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