Cloudflare, a cloud-based security and performance service provider, has announced a change in pricing plans that will affect their Pro and Business Plan customers. The company says that this change marks the first time Cloudflare has raised prices since it launched its service in 2010.
According to the company, customers using the Pro and Business Plans can now choose between monthly or annual payment options. The yearly plans will allow customers to lock in current pricing and help Cloudflare accelerate its network growth and pace of innovation.
“Beginning January 15, 2023, new sign-ups will be charged $25 per month for our Pro Plan (up from $20 per month) and $250 per month for our Business Plan (up from $200 per month). Any paying customers who sign up before January 15, 2023, including any currently paying customers who signed up at any point over the last 12 years, will stay at the old monthly price until May 14, 2023,” explained Matthew Prince, the CEO of Cloudflare in a company blog.
Prince also explained that the new monthly rate is now available for $240 per year for the Pro Plan (the equivalent of $20 per month) and $2,400 per year for the Business Plan (the equivalent of $200 per month). In other words, if customers pay for Cloudflare annually, they will pay the old monthly prices.
The company claims that its primary motive for these changes is to enable them to keep investing in innovation rather than simply increasing earnings. Prince explained that the primary reason behind the changes in pricing structure is cash flow and he hopes most customers choose an annual plan.
“While we have over a decade of network expansion and innovation under our belts, what may not be intuitive is that our goal is not to increase revenue from this change. We need to invest upfront in building out our network. The main reason we’re making this change is to more closely map our business with the timing of our underlying costs,” said Prince.
The company also said that the free plan, which includes features such as security, performance optimization and content delivery, will remain free. Additional paid-plan features will gradually be rolled out to the free plan over time.
“Our mission is to help build a better Internet. We want to win by being the most innovative company in the world. And that means making our services available to as many people as possible, even those who can’t afford to pay us right now,” continued Prince.
Gartner recently recognized Cloudflare in the Magic Quadrant Report for Web Application and API Protection (WAAP).
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