Cloudflare, a company that provides an integrated cloud-based security solution to secure a variety of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices worldwide, has announced its first ever price increases.
The Pro plan will increase from US$20 per month to US$25 per month, while the Business plan will increase to US$250 per month beginning January 15, 2023.
Cloudflare will also announce annual plans with discounts for customers who pay for a full year in advance. While current customers will not be charged until May 14, 2023. People who sign up between now and January 15 will also receive the delayed price increases for The Pro plan at $240 and the Business Plan at $2,400, which are the same as the monthly prices today.
While explaining the reason for its action, CEO Matthew Prince and president Michelle Zatlyn said, “We need to invest up front in building out our network, and the main reason we’re making this change is to more closely map our business with the timing of our underlying costs.”
Cloudflare expects revenue and earnings growth rates of 35.6% and 35.4%, respectively, over the next year, but the company is having difficulty managing cash flow to fund investments quickly. As a result, it must invest more quickly, hire more engineers, and deploy more servers, among other things.
The sources for this piece include an article in TheRegister.