Cloudflare R2 Storage: New Infrastructure Services Product

Cloudflare Enters Cloud Storage with R2

Cloudflare, operating a global network encompassing 250 data centers, has announced its initial venture into infrastructure services with the forthcoming cloud storage solution, R2.

According to co-founder and CEO Matthew Prince, the impetus for developing a storage-as-a-service offering stemmed from internal requirements. The company initially constructed the service for its own use before extending it to customers.

Internal Needs Drive Product Development

“Our product development process frequently begins with an internal need,” Prince explained. He detailed how the storage component originated from the necessity to store object elements, such as images, within the Cloudflare network.

Upon completion of the internal build, a review of the existing cloud storage market led to the decision to offer it as a commercial product.

Competitive Pricing and Performance

“We recognized the potential to deliver a storage solution with comparable functionality to existing options, leveraging our global network for superior performance, and offering it at a more competitive price point,” he stated.

The name R2 is a deliberate reference to Amazon’s S3 storage service. A key differentiator, Prince asserts, is the potential for cost reduction – up to 10% – through the elimination of egress fees.

Cloudflare intends to price storage at $0.015 per GB per month, contrasting with S3’s starting price of $0.023 per GB for the initial 50 TB monthly.

Eliminating Egress Fees

“Traditional cloud providers often offer free data input but charge for data retrieval,” Prince noted. “A primary objective of this service is to eliminate these costs associated with data movement, including waiving charges for ‘infrequent access.’”

Market Positioning and Cost Savings

Prince highlighted the declining cost of bandwidth alongside the sustained high cost of storage from major cloud providers. He believes Cloudflare can pass these savings onto its customers.

While not directly competing with companies like Backblaze and Wasabi – both of which Cloudflare considers partners – he acknowledges their shared goal of challenging Amazon and other large cloud providers in the cloud storage sector.

Beta Program and Future Expansion

The product remains under development, and a waitlist is available for customers interested in participating in a beta program anticipated in the coming months.

Looking ahead, Prince indicated that Cloudflare is exploring additional services beyond storage. He envisions the company ultimately competing with the leading cloud vendors – AWS, Google, and Microsoft.

“We are positioning ourselves to become the fourth major public cloud provider,” he concluded. “Our approach is distinct from the existing three, and we will continue to expand our service offerings.”