How to Compete with Cloudflare
This week we're going to see a bunch more announcements from CF. They'll probably all have a top comment about how CF is the MITM of the internet and a single point of failure. Is this simply the future we're doomed to live in?
There must be new niches ("value networks" as per that blog) that Cloudflare finds not worthwhile to serve. Usually they're at the lower end or the "nonconsumption" case, as described in the above blog post. That's one way to chip away at a bit of their customer base.
But it's best to just focus on customers and not imagine you're "competing with Cloudflare". Nothing to be gained by framing it that way.
I don’t understand why people are so up in arms about Cloudflare being a MITM, but not e.g. AWS API Gateway being a MITM.
Cloudflare offers a lot of stuff, if you mean compete on DDOS protection, you best case is host-provider DDOA protection, which won't MITM connections.
Best way to compete with Cloudflare is to use decentralized cloud storage options, that are compatible with S3, cheaper, and faster – like storj.io