Netflix's Story of Migration to AWS (2024)

History: Netflix Before AWS

Netflix was founded on 29 August, 1997 by Marc Randolph and Reed Hastings in Scotts Valley, California. At the start, it offered a per-rental model for each DVD. The per-rental model was dropped by early 2000, allowing the company to focus on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per-title rental fees.

In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. Netflix built two datacentres, located right next to each other but the company could not build data centres fast enough to meet the often-spiky demand of its users And as soon they got everything working they would run out of capacity, and the whole process had to start over again.The experience of building data centres taught Netflix an important lesson — they weren’t good at building data centres. What Netflix was good at was delivering video to their members. Netflix would rather concentrate on getting better at delivering video rather than getting better at building data centres.

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.

Why did Netflix choose AWS ?

In order to transition from vertically scaled single points of failure, such as relational databases on our datacenter, to highly reliable, horizontally scalable, distributed systems in the cloud, Netflix picked AWS as their cloud provider.

They switched to AWS because it offered them the most scope and the widest range of services and capabilities. Netflix wanted cloud computing to spread globally without having to construct its own data centres, but its outdated data centres couldn't do so. How close Netflix was to going all-in on the AWS cloud was disclosed in an August 2015 Wall Street Journal piece.

Netflix relies on AWS to help it innovate with speed and consistently deliver best-in-class entertainment. AWS provides Netflix with compute, storage, and infrastructure that allow the company to scale quickly, operate securely, and meet capacity needs anywhere in the world.

Migration to AWS

It took 7 years for Netflix to migrate to AWS. The majority of their systems, including all customer facing services, had been migrated to the cloud prior to 2015. After that, the time taken was to figure out the perfect secure and durable path for their billing infrastructure and all the aspects of our customer and employee data management.

Finally in January 2016, Netflix finally completed its cloud migration and shut down its last remaining data centre bits by their data service. Though most of its systems are handled by AWS, due to an increase in the number of customers, Netflix decided to build its own Content Delivery Network (CDN) named “Open Connect” for storing and transmitting data. CDN basically copies the website and its media content to its servers spread around the world.

The migration improved Netflix's scalability and service availability and the velocity by which the company could release new content, features, interfaces and interactions. It also freed up the capacity of engineers, cut the costs of streaming, drastically improved availability and added the experience and expertise of AWS.

How AWS Benefits Netflix

Moving to the cloud has brought Netflix a number of benefits. It got 8x more streaming members than they did in 2008, and they are much more engaged, with overall viewing growing by 3 times in 8 years. Netflix started its service in around 130 countries with millions of new customers after its migration.

After this, Netflix continued to evolve rapidly, incorporating many new resource-hungry features and relying on ever-growing volumes of data. Supporting such growth would have been difficult on Netflix’s own data centres. AWS’s Elasticity of the cloud allowed them to add thousands of virtual servers and petabytes of storage within minutes, making such an expansion possible.

On January 6, 2016, Netflix expanded its service to over 130 new countries, becoming a truly global Internet TV network. Leveraging multiple AWS cloud regions, spread all over the world, enabled Netflix to dynamically shift around and expand its global infrastructure capacity, creating a better and more enjoyable streaming experience for Netflix members wherever they are.

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Netflix relies on the cloud for all of our scalable computing and storage needs — business logic, distributed databases and big data processing/analytics, recommendations, transcoding, and hundreds of other functions that make up the Netflix application. Video is delivered through Netflix Open Connect, our content delivery network that is distributed globally to efficiently deliver our bits to members’ devices.

The cloud also allowed Netflix to significantly increase their service availability. Cost reduction was not the main reason they moved to the cloud. However, their cloud costs per streaming start ended up being a fraction of those in the data centre. This is possible due to the elasticity of the cloud, enabling them to continuously optimise instance type mix and to grow and shrink their footprint near instantaneously without the need to maintain large capacity buffers.

AWS Services Netflix Uses

Netflix has a very complex architecture on AWS and they use all of them together as a hybrid system to stream and power their services like Amazon KDS, AWS Lambda, Amazon Route 53, EC2, ELB, TTL, ML, etc. Some of the key services used are are:-

Amazon Kinesis Data Streams (Amazon KDS)

Netflix is able to continually gather terabytes of data per second from tens of thousands of sources with the aid of KDS, and the data is made available in milliseconds for use in real-time analytics and stored in Amazon S3. This may be utilised to enhance both the customer experience and the referral programme.

AWS Lambda

With the help of AWS Lambda, Netflix created a self-managing architecture based on rules and replaced ineffective procedures to cut down on mistakes and gain crucial time.

With lambda, we can utilise the rules that are triggered by data modifications to determine what needs to be backed up, what needs to be duplicated to off-site storage, and to verify that it arrived securely. We can also restart the copies and recheck and revalidate if it failed to raise any alarms.

Additionally, it is utilised for automating security. With lambda, they can verify that every new instance is built and configured in compliance with the laws and circ*mstances, and they can also start a shutdown process or send out notifications when unauthorised instances enter their infrastructure.

Amazon Route 53

More than 190 different nations have Netflix access. A complicated DNS infrastructure is needed to make it robust for customers, which is where AWS Route 53 helps Netflix. All utilise distinct AWS Regions.

Divert 53 enables Netflix to swiftly and effectively route traffic to alternate regions in the event of a server or region failing or becoming overloaded.

Present Status & Conclusion

In its 20-year history, Netflix has grown from a DVD rental website with 30 employees to a global streaming service with over 5,000 titles, 130 million subscribers and $11 billion annual revenue that has drastically transformed the entertainment industry. Its service is now available in more than 190 countries.

In a nutshell, it uses its CDN for media storage and transmitting it, but for rest all the services like Recommander system, user Information, traffic Routing, Log, DNS Routing, etc., Netflix relies on AWS.

Netflix's Story of Migration to AWS (2024)

FAQs

Why did Netflix migrate to AWS? ›

The union of Netflix and AWS stems from a strategic shift – moving away from vulnerable, vertically scaled systems in their data centers (like relational databases), Netflix decided to move towards the robust, horizontally scalable, and distributed systems offered by the Cloud.

What is the key challenge to Netflix cloud adoption journey? ›

Key challenges to Netflix's Cloud Adoption Journey. Netflix was using a monolithic architecture for their application and services. This was a major obstacle during their cloud adoption journey due to the limitations a monolithic architecture posed.

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.

How did Netflix prepare for the AWS outage? ›

As it became clear that AWS was unlikely to resolve the issues before Netflix reached peak traffic in the early evening, we decided to manually re-assign our traffic to avoid the problematic zone. Thankfully, Netflix engineering teams were able to quickly coordinate to get this done.

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

Our journey to the cloud at Netflix began in August of 2008, when we experienced a major database corruption and for three days could not ship DVDs to our members.

What event convinced Netflix to switch to a cloud-based service? ›

Netflix began its move to the cloud in 2008, after experiencing a major database corruption that stopped DVD shipments for three days.

When did Netflix start using AWS? ›

Netflix would rather concentrate on getting better at delivering video rather than getting better at building data centres. 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.

What are the risks and benefits to Netflix in using Amazon's cloud computing platform? ›

What are the risks and benefits to Netflix in using Amazon's cloud computing platform? Coopetition is the collaboration between two competitors in a market. Netflix using Amazon's cloud computing runs the risk of new product development and innovation, and reduction of efficiency and communication with its consumers.

Is Netflix still running on AWS? ›

Netflix relies on AWS to help it innovate with speed and consistently deliver best-in-class entertainment. AWS provides Netflix with compute, storage, and infrastructure that allow the company to scale quickly, operate securely, and meet capacity needs anywhere in the world.

How does AWS manage big data for Netflix? ›

Building on Amazon Simple Storage Service (S3) to store and move assets across its systems, along with AWS Local Zones, Netflix can then track assets using object stores and file systems, and dive into namespaces, access control, support for part-level addressability for multipart objects, and lifecycle management.

How much does Netflix pay AWS per year? ›

Netflix pays AWS 1 billion in cloud charges per year. This allows them to scale enough to make about 12 billion. Without AWS they wouldn't be able to offer their users the sophisticated experience they do. Disney operates on the same scale.

What was the root cause of the AWS outage? ›

As AWS describes it, this “triggered an unexpected behavior from a large number of clients inside the internal network”. Basically, AWS unintentionally triggered a Distributed Denial of Service (or DDoS attack) on their own internal network.

How did Netflix overcome the recession? ›

Expanding your business to solve a problem created by the recession can render your model recession resistant. In the case of Netflix, expanding the business and introducing new products aligned with current consumer trends has done just that. Click here to get a FREE copy of my book The Recession-Proof Business.

How is Netflix competing with Amazon? ›

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. We compare both services based on content, price, and other factors.

When did Netflix join AWS? ›

Netflix would rather concentrate on getting better at delivering video rather than getting better at building data centres. 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.

Why did Netflix change to a streaming service? ›

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 move to microservices? ›

Netflix runs on AWS. They started with a monolith and moved to microservices. Their reasons for migrating to microservices were the following: It was difficult to find bugs with many changes to a single codebase.

Why companies are switching to AWS? ›

We might actually say that AWS is the piece of infrastructure that has enabled the current tech boom. By shifting to the cloud, enterprises can bring up new servers in minutes translating into shorter downtimes, rapid experimentation, more innovation, increased global reach and more successful projects.

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