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In the case of fly.io it’s a little different because they have a anycast network with traffic being accepted at the closest region and being proxied to your running VM. This is not unlike a CDN, and if you look at the North America/Europe pricing of most CDNs, fly.io is quite similar.

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Anycast does not really make the pricing that different.

Especially since one does not have to backhaul the traffic to one specific PoP.

Cloudflare manages to run their Anycast CDN as a loss leader just fine.

I believe Cloudflare is in the long-haul of commoditizing their competitors and making their profit through other auxiliary services.

Also, on the plan routing is atrocious, with all requests from Africa and Asia being directed into Europe, which helps keep costs down, but it cannot then be compared with fly.io.

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