Alex Henderson: Superb. Thank you so much.
Operator: Your next question comes from the line of Mark Murphy from JPMorgan. Please go ahead.
Mark Murphy: Thank you. Matthew, you have so many products that can help companies reduce the egress fees and all the other charges that are running up in their hyperscaler bills. And I was thinking of Super Slurper and Sippy and HyperDrive, and some of the other products, could you comment on the demand patterns there? And just whether you’re benefiting from some of those optimization efforts out there. And then I have a quick follow-up.
Matthew Prince: Yes, I think that that’s – I mean, everyone today is looking at their cloud bill and saying, how can we make this go down? How can we get more with every IT dollar that is being spent? And as companies do that, they are realizing that, one, the best way to not get just completely gauged by whoever your cloud provider is, is not be completely dependent on them, and have the ability to negotiate and move data and workloads from one provider to another. And so enabling that multi-cloud universe is just fundamental to how we think about what we’re doing. And then second, to finding those places where you might be more locked in today and finding ways to release that lock in. And I think that’s fundamentally what we’re doing at Cloudflare.
As I talked about in the beginning, the hyperscale public clouds, the key KPI that they pay attention to is, how much of a customer’s data are they hoarding on their systems? Do they hold captive, where the cloud players, what we pay the most attention to is, how much connectivity can we deliver? How many things can we make it easy to move that data between? And I think that fundamental difference, it’s not so much that we’re trying to compete directly with the cloud, but over time, what we really want to do is enable customers to be able to get the best out of AWS and Google, and Microsoft, and Oracle, and IBM, and Alibaba, and Tencent and be that fabric that connects them all together. And I think more and more customers are seeing the power of that.
They’re multicloud, whether they want to be or not, and we’re the consistent control plane that can sit between all of those things, help them reduce their costs, help them reduce lock-in, and really have a much more competitive cloud ecosystem over time.
Mark Murphy: Thank you so much for that. I really appreciate it. And just as a follow-up, is there any rough math on the number of GPUs you’re loading into suitcases to install over the next 12 months? And should we assume that those are, or that there can be some of the lower-end GPUs for inferencing and they’re not the ultra-expensive high-end ones?
Matthew Prince: I think that what we hear from customers is that they don’t want to have to think about what GPU is the right GPU for them. And so we will have a mix of GPUs. Today, we’re standardized around NVIDIA, but we’re good friends with the folks at AMD and Intel and Qualcomm. We’re all doing interesting things and different models from what we’ve seen performed differently on different types of GPUs that are out there. And so I think you’ll find every flavor under the sun of – from expensive to cheap delivered across the network. But what we’re really trying to optimize for, is looking at the models that are being run and then giving people the right tools that they need in a way that can give them the best performance on, not just a speed basis, but also on a cost and efficiency basis.
And that’s going to be diversity across that ecosystem. And we are good at being able to scale up our capacity as we have demand and investing behind the demand. And I think that this is going to be another area where we demonstrate that.
Mark Murphy: Thank you very much.
Operator: Our final question comes from the line of Trevor Walsh from JMP Securities. Please go ahead.
Trevor Walsh: Great. Thanks all for squeezing me in here at the end. Matthew, I just wanted to piggyback, maybe of some of your last comments there on that final question, and just the ones you had in your prepared remarks around the category classification of the connectivity cloud. That makes total sense to me in terms of the strategic, more CIO lens, as far as kind of the benefits of being on that connective tissue and kind of savings around R2 and kind of all the things. But as you go and talk to CISOs and especially within the context of your R2 products that you have, Zero Trust and otherwise, does that messaging kind of need to change a little bit? Or do you think they view it in the same way? Because I think they’re kind of, obviously, the audience is in the kind of the overall value front might, I mean, be similar, but given to some respects, just maybe help us understand how might that CISO respond or are, in fact, responding to that same connectivity cloud messaging.
Thanks.
Matthew Prince: Yes. I think we’ve been strong with CISOs for some time, and they know us and they know the value that we can deliver. I think what we’re trying to make sure is that we have, can have a strategic conversation with the CIOs and the CFOs that are out there and say, here’s how we can deliver value, help you consolidate vendors and give you one consistent control plane that is – that has an incredible ROI to it. So I think we’re – we don’t want to rest on our laurels. We’ve been very, very strong with practitioners. We’ve been very strong in the security community but we want to make sure that we can have that strategic conversation. And we had a record number of customers that we signed up, at over $1 million a year with us.
We had a record number that crossed into the $5 million a year with us this last quarter. And those are conversations that have to be had the CFO, even in large companies, the CFO is going to be involved in signing $5 million deals. And so I think that the messaging is the right time and it reflects that we are talking to higher and higher levels within the organization, and we are being seen much more as a strategic partner within those companies.
Trevor Walsh: That’s great. Appreciate it.
Operator: Thank you. I will now turn the call over to Matthew Prince for closing remarks.
Matthew Prince: I appreciate everyone at Cloudflare, all of our customers, partners in helping us navigate what is an increasingly complicated world. Our thoughts are with all of the people around the world that are being affected by war. We’re continuing to deliver our services and stand up for the Internet, and even in these incredibly complicated times, the work that Cloudflare does is important in making sure the Internet can continue to thrive. Thank you all. I’ll see you back in the next quarter.
Operator: This concludes today’s conference call. Thank you for your participation, and you may now disconnect.
