Netflix Migrates to the Public Cloud for Seamless Streaming |
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The benefit of using cloud computing services was that firms could avoid the upfront costs and difficulties of owning and maintaining their own IT infrastructure, and pay instead for just what they used and when they used it. The growing demand for cloud services indicated that companies were letting go of their own data centers and moving their application workloads to the cloud. Customers used AWS to lower costs, become more agile toward research, and innovate faster. .. |
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| Netflix was founded in 1997 by Marc Randolph and Reed Hastings, and was headquartered in Los Gatos, California. In 1999, Netflix introduced a Digital Versatile Disc (DVD) subscription service, providing unlimited rentals of movies on a monthly subscription basis. Toward the close of 2007, Netflix was shipping around 1.6 million DVDs on a daily basis... |
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| Prior to 2008, Netflix was dependent on its own data centers that ran on relational databases for the delivery of its services. Being a fast growing streaming service, it carried thousands of videos. It also stored customer information and data regarding their viewing behavior in its database. In August 2008, Netflix experienced a major database disruption as result of a data center failure, due to which it was unable to ship DVDs to its members for three days. That forced the company to rethink about operating its own data centers... |
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| However, there were certain challenges Netflix faced in moving to AWS. It was important that while making the migration to the cloud, users should not experience any downtime in streaming. Also, it was necessary that the new architecture in AWS should be scaled in line with the rapidly growing member base of Netflix and that billing migration needed to occur without impacting the existing customer billing information... |
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| Netflix replaced its previous Oracle database with Apache Cassandra , an open source NoSQL database known for its scalability and enterprise-grade reliability. NoSQL database systems were distributed non-relational databases that also used non-SQL language and mechanisms in working with data. In NoSQL databases, the workload could be automatically spread across multiple servers, was highly distributable with clusters of servers which could hold the database, and was easily scalable to adapt to the complexity of the cloud... |
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| AWS prepared the total groundwork needed to deliver the content through Netflix such as customer sign up or video search, as Netflix’s datacenter infrastructure was placed entirely on AWS hardware. That included the business logic, personalization, search, and data processing which provided the streaming experience. Most of the technology needed to manage employees of the streaming business was also on AWS... |
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| Netflix saw a tremendous increase in streaming hours from 2008 onward. By 2015, it had eight times as many streaming members as it had in 2008 .. |
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| Industry observers thought that the stringent demands made by Netflix, in addition to Amazon’s willingness to improve its service and meet its customers’ requirements, played a major role in making AWS into the full, enterprise-scale integrated set of services that it was, as of 2019... |
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Exhibit I: Important AWS Services
Exhibit II: Comparing Compound Annual Growth Rates (CAGRs) of Worldwide Public Cloud Service Revenue Segments, 2018-2022
Exhibit III: Amazon.com, Inc. Results of Operations (Amount in US$ Million)
Exhibit IV: Application Workload on Each Cloud Platform – 2019
Exhibit V: Netflix, Inc. Streaming Revenue and Membership Information by Region
Exhibit VI: Netflix Monthly Streaming Hours Growth
Exhibit VII: Amazon Web Services (AWS) used by Netflix
Exhibit VIII: Netflix Realizes Multi-Region Resiliency Using Amazon Route 53
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