What led Netflix to shut their own data centers and migrate to AWS? (2024)

What led Netflix to shut their own data centers and migrate to AWS? (2)

Netflix was originally a DVD shipping business where they would send out DVDs of your chosen programs to you. This was going well until 2008 where they experienced a major database loss and for 3 days could not ship out any DVDs to their customers. That was when the senior management at Netflix realized that they had to shift from continuous vertical scaling which leads to single points of failure to a more reliable and scalable horizontal scaling system. They chose Amazon Web Services despite having Amazon as a competitor (Amazon has their own streaming service known as Amazon Prime) because AWS provided them with the greatest scaling capabilities and the biggest set of available features. It took 7 years of migration for Netflix to shut down their last remaining data centers and move completely to the cloud.

Moving to the cloud has allowed Netflix to keep its existing members well engaged with overall viewing growing exponentially.

What led Netflix to shut their own data centers and migrate to AWS? (3)

Netflix itself has continued to evolve rapidly by using many new features and relying on ever-growing volumes of data. Supporting this fast growth would not be possible earlier using their own in-house data centers. Netflix could not have racked the servers fast enough to support their own growth. While Cloud brings elasticity, which allows Netflix to add thousands of virtual servers and petabytes of storage within minutes which makes the whole process easier

As of January 2016, Netflix has expanded into 130 new countries. It uses multiple AWS Cloud regions which are spread all over the world to create a better and more enjoyable streaming experience for Netflix members wherever they are.

Netflix relies on Cloud for all its scalability, computing, and storage needs (not only video streaming) — Netflix business logic, distributed databases, big data processing, analytics, recommendations, transcoding, and hundreds of other functions that are used by Netflix all go through their Cloud infrastructure. Netflix also has its own Content Delivery Network (CDN) known as Netflix Open Connect which is used to deliver videos globally in an efficient manner.

When Netflix was using their own data centers, it faced a lot of outages. Cloud Computing is not perfect either, even though Netflix has hit some rough patches in the cloud, a steady increase in the overall availability has been noticed. Failures are ultimately unavoidable in any large-scale distribution system, even a cloud one. However, a Cloud-based system allows you to create redundancy measures while become quite helpful. Cloud Computing has made it possible to survive failures without impacting the member experience.

Netflix did not shift to cloud for cost reduction reasons, but Netflix’s cloud costs ended up being a fraction of their cost which was a pleasant surprise. This was due to the elasticity factor of cloud computing, enabling Netflix to continuously optimize instances to grow and shrink as per requirement without the need to maintain large capacity machines. Economies of Scale helps Netflix in this scenario.

The benefits are very clear, but it still took seven years for Netflix to complete the migration. Moving to the cloud is a lot of work and a lot of factors need to be considered. Netflix could easily move all of its existing systems to AWS but bringing existing systems also brings all the problems and limitations that were present. So, Netflix took the cloud-native approach, they rebuilt all of their technology and fundamentally changed the way they operate the whole company. Netflix migrated from a single application to thousands of micro-services.

What happens when you need to move 89 million viewers to a different AWS region? Netflix’s infrastructure, built on AWS, makes it possible to be extremely resilient, even when the company is running services in many AWS Regions simultaneously.

What led Netflix to shut their own data centers and migrate to AWS? (4)

In this episode of This is My Architecture, Coburn Watson, director of performance and reliability engineering at Netflix, walks through the company’s DNS architecture — built on Amazon Route 53 and augmented with Netflix’s Zuul — that allows the team to evacuate an entire region in less than 40 minutes.

What led Netflix to shut their own data centers and migrate to AWS? (5)

Netflix is the world’s leading internet television network, with more than 100 million members in more than 190 countries enjoying 125 million hours of TV shows and movies each day. Netflix uses AWS for nearly all its computing and storage needs, including databases, analytics, recommendation engines, video transcoding, and more — hundreds of functions that in total use more than 100,000 server instances on AWS.

What led Netflix to shut their own data centers and migrate to AWS? (2024)

FAQs

What led Netflix to shut their own data centers and migrate to AWS? ›

"We chose Amazon Web Services (AWS) as our cloud provider because it provided us with the greatest scale and the broadest set of services and features. The majority of our systems, including all customer-facing services, had been migrated to the cloud prior to 2015.

Why did Netflix migrate to the AWS cloud? ›

It began its transition to the cloud back in 2008, shifting from traditional physical data centers to Amazon Web Services (AWS), a leading cloud services provider. By moving its vast infrastructure to the cloud, Netflix aimed to streamline its operations, improve scalability, and enhance the customer experience.

What event caused Netflix to switch to a cloud based service? ›

Historic major database corruption

Izrailevsky states that Netflix's journey to this point started back in 2008 when they experienced a major database corruption. Back then, Netflix was still predominantly a DVD-by-mail service and this corruption hit them hard, causing a three-day disruption to DVD shipping.

When did Netflix shift to AWS? ›

In August 2008, Netflix experienced major database corruption for three days. This is when Netflix decided to go to Amazon Web Services (AWS), even though Amazon is its biggest competitor. At this time, AWS was just getting established.

How has AWS helped Netflix? ›

AWS's worldwide infrastructure greatly aided Netflix's ability to deliver seamless streaming services. AWS delivered high availability and resilience for Netflix's platform by using several availability zones and redundant systems.

What is the relationship between Netflix and AWS? ›

What AWS Services Does Netflix Pay For? Netflix uses AWS for almost everything cloud computing. That includes online storage, a recommendation engine, video transcoding, databases, and analytics. So most of the $1 billion Netflix plans to spend on cloud services will go into Amazon Cloud Services.

Does Netflix have its own data centers? ›

Netflix uses a combination of its own data centers and cloud infrastructure provided by third-party companies, such as Amazon Web Services (AWS) and Google Cloud Platform (GCP), to host its content.

What caused AWS to go down? ›

Amazon has blamed a “subsystem responsible for capacity management for AWS Lambda” for an AWS outage in its US-EAST-1 region that took down over 100 services for approximately four hours late on June 13.

Does Netflix own its own servers? ›

Unlike its peers, Netflix has made a substantial capital investment to establish its own CDN, consisting of over 17,000 servers strategically spread across 158 countries.

Why do you think Netflix is using this cloud service instead of constructing its own datacenter? ›

Netflix moved to AWS because it wanted a more reliable infrastructure. Netflix wanted to remove any single point of failure from its system. AWS offered highly reliable databases, storage and redundant datacenters. Netflix wanted cloud computing, so it wouldn't have to build big unreliable monoliths anymore.

What problem did Netflix solve? ›

Netflix founders Reed Hastings and Marc Randolph wanted to bring customer-centricity to the video rental market. At the time, renting videos was inconvenient and costly, with customers often plagued by expensive late fees. They created an entirely new way to watch movies and consume content.

Why did Netflix switch to streaming? ›

They had to future-proof the business they had built, so Netflix went all in on streaming video. Rather than focus on improving delivery of physical DVDs, Netflix would reinvent entertainment delivery by providing its subscribers with instant access to thousands of titles that they could binge-watch on any device.

When did Netflix start declining? ›

Netflix is battling to regain market share after losing nearly 1.2 million subscribers in the first six months of 2022, the first decline in a decade, after a viewership boom during the COVID-19 pandemic.

How does Amazon compete with Netflix? ›

Netflix is a streaming juggernaut due to its high-profile original programming, but Amazon Prime Video's add-on channels and live sports make it a strong competitor.

When did Netflix move online? ›

In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. However, at that time it only had 1,000 films available for streaming, compared to 70,000 available on DVD.

What caused Amazon AWS outage? ›

Amazon has blamed a “subsystem responsible for capacity management for AWS Lambda” for an AWS outage in its US-EAST-1 region that took down over 100 services for approximately four hours late on June 13.

Why companies are switching to AWS? ›

It eliminates the necessity for on site servers and hardware. WHY EVERYONE IS MOVING TO AWS? A recent whitepaper by IDC, shows the customers that migrate to AWS can experience 51% reduced costs of operations, 62% increased IT staff productivity, and 94% reductions in downtime.

Why companies are moving to AWS? ›

For years, companies of all sizes have chosen to migrate their IT infrastructure to the cloud with AWS because of the significant cost savings they can achieve compared to maintaining on-premises environments.

Top Articles
Latest Posts
Article information

Author: Melvina Ondricka

Last Updated:

Views: 6732

Rating: 4.8 / 5 (68 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Melvina Ondricka

Birthday: 2000-12-23

Address: Suite 382 139 Shaniqua Locks, Paulaborough, UT 90498

Phone: +636383657021

Job: Dynamic Government Specialist

Hobby: Kite flying, Watching movies, Knitting, Model building, Reading, Wood carving, Paintball

Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.