Netflix is all set to operate through the data centers of Amazon Web Services from Monday next week. The company made it official on late Thursday and added that all the streaming of video to managing its employee and customer data will be done through AWS from early next week.
In early January, the company got rid of whatever little bit of data center infrastructure it had and so from February third week, it will fully operate through AWS.
To be specific, since 2014, Netflix operations are running through AWS cloud. This includes all customer facing applications.
The reason, Netflix today has eight times more customers using its video streaming service than it did in 2008, when it started using AWS for just handful of applications.
In January, Netflix operations were extended to more than 130 countries, and AWS, with its global footprint, made it a lot easier to do.
According to Yuri Izrailevsky, the company’s VP of Cloud and Platform engineering, said in its latest blog post that, it took seven years to rely completely on AWS, because Netflix didn’t want to take simply everything it had running in its data center and replicate it on AWS instantly. It slowly made a step by step move to fundamentally transform its entire company operations onto Amazon Cloud.
Netflix found in its gradual transformation that cloud has lowered its operational costs to about 39%, which can influence on a major note when it comes to year on year financial drafting.
And this wasn’t the only case for Netflix to jump onto Amazon Cloud. The company’s cloud cost per streaming start was just a fraction of the cost of streaming from its own data center. Moreover, the costs further went down because of the flexibility of being able to constantly adjust the mix of cloud instances in use and to grow or shrink capacity as needed.
In other words, a monolithic data center where physical boxes take time to install, decommission, or upgrade, gave way to a fluid infrastructure that can be adjusted on the fly for more efficient utilization of resources.
Yuri while closing his blog post predicted that TV viewers are showing more interest in seeking content online. So, transforming Netflix entirely to cloud will pay the business well in future.
But Verizon has a different story to tell which will be updated shortly!