Cloudflare Helps Companies Reduce their IT Infrastructure's Carbon Footprint By Up To 96% by Moving To The Cloud

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San Francisco, CA, September 25, 2023 – Cloudflare, Inc. (NYSE: NET), the security, performance, and reliability company helping to build a better Internet, today shared a new independent report published by Analysys Mason that shows switching enterprise network services from on premises devices to Cloudflare’s cloud-based services can cut related carbon emissions up to 78% for very large businesses to up to 96% for small businesses. The report is one of the first of its kind to calculate potential emissions savings achieved by replacing enterprise network and security hardware boxes with more efficient cloud services.

Global Internet usage accounts for 3.7% of global CO2 emissions, about equal to the CO2 emissions of all air traffic around the world. The Internet needs to reduce its overall energy consumption, especially as regulators continue to implement the Paris Climate Accord, including plans to transition to a zero emissions economy. The European Climate Law requires that Europe’s economy and society become climate-neutral by 2050, with a target of reducing net GHG emissions by at least 55% by 2030, compared to 1990 levels. Regulators in the United States and the European Union, among others, have also announced plans to require companies to disclose climate-related information including carbon emissions resulting from their operations and supply chains, as well as climate related risks and opportunities. Finally, among the Fortune Global 500, 63% of companies now set 2050 targets for emissions reductions. Companies large and small will increasingly be looking to reduce carbon throughout their supply chains, particularly their IT infrastructure.

“The best way to reduce your IT infrastructure’s carbon footprint is easy: move to the cloud,” said Matthew Prince, CEO and co-founder, Cloudflare. “At Cloudflare, we’ve built one of the world’s most efficient networks, getting the most out of every watt of energy and every one of our servers. That’s why, with Cloudflare, companies can help hit their sustainability goals without sacrificing security, speed, performance, or innovation.”

The Analysys Mason study found that switching enterprise network services from on premises devices to Cloudflare services can cut related carbon emissions up to 96%, depending on the current network footprint. The greatest reduction comes from consolidating services, which improves carbon efficiency by increasing the utilization of servers that are providing multiple network functions. On premises devices are designed to host multiple workloads and consume power constantly, but are only used for part of the day and part of the week. Cloud infrastructure is shared by millions of customers, often all over the world. As a result, cloud providers are able to achieve economies of scale that result in less downtime, less waste, and lower emissions. Furthermore, the Analysys Mason study found that there are additional gains due to the high Power Usage Effectiveness of cloud data centres, and differences in the carbon intensity of generation in the local electricity grid.

“Happy Cog is a full-service digital agency that designs, builds, and markets experiences that engage our clients and their audiences. We’ve relied on Cloudflare for many of those websites and apps because it's secure, reliable, fast, and affordable – but also aligns with many of our clients’ sustainability roadmaps and goals,” said Matt Weinberg, Co-Founder and President of Technology at Happy Cog. “Switching our clients from their previous on premises or other constant-usage infrastructure to Cloudflare's network and services has let them be greener, more efficient, and more cost effective. It's ideal when you can offer your clients a solution that covers all their needs and provides a delightful experience now, without having to compromise on their longer term priorities.”

Report Methodology

Analysys Mason compared a typical hardware stack deployed in an enterprise data center or IT closet, and its associated energy consumption, to the energy consumption of comparable functions delivered by Cloudflare’s global network. Traffic requirements were translated to energy requirements for both on-premise and cloud-based alternatives. The analysis includes assumptions for the power usage effectiveness (PUE) of cloud data centers vs. on-premises data centers or data rooms, and the carbon from electricity, based on the mix of fossil fuel versus renewable energy sources in the local grid.

To learn more, please check out the resources below:

• Blog: Switching to Cloudflare can cut your network carbon emissions up to 96% (and SBTi)
• Full report: Carbon Savings of Cloud-Based Enterprise Network Functions

About Cloudflare

Cloudflare, Inc. (www.cloudflare.com / @cloudflare) is on a mission to help build a better Internet. Cloudflare’s suite of products protect and accelerate any Internet application online without adding hardware, installing software, or changing a line of code. Internet properties powered by Cloudflare have all web traffic routed through its intelligent global network, which gets smarter with every request. As a result, they see significant improvement in performance and a decrease in spam and other attacks. Cloudflare was awarded by Reuters Events for Global Responsible Business in 2020, named to Fast Company's Most Innovative Companies in 2021, and ranked among Newsweek's Top 100 Most Loved Workplaces in 2022.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding Cloudflare’s plans and objectives for its global network and other products and technology, the benefits to customers from using Cloudflare’s global network and and other products and technology, the expected functionality and performance of Cloudflare’s global network and other products and technology, the impact of switching enterprise network services to the cloud, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s CEO and others. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on August 3, 2023, as well as other filings that Cloudflare may make from time to time with the SEC.

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