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Netflix in the Cloud was an extremely in-depth look at how Netflix runs their service in the Amazon AWS cloud. This presentation was pretty well over my head for the most part, but it was very interesting to see how a site with so much traffic is structured. The talk began with a discussion of the downfalls of their old data center solution, followed by a thorough overview of their new, faster, scalable, available, and productive cloud architecture.
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Netflix Cloud Architecture
1
Netflix Business Strategy
2
Remove
Late Fee
Provide
Choice from
Long Tail
Ubiquitous
Anytime
access
Incumbents in 1997
! Blockbuster, Hollywood
Videos, Movie Gallery
! Rented DVDs out from
prime locations
! Kept inventory of about
2000 titles with 3 to 4
copies of each
! Mostly expensive DVDs
with new movies and some
long time hits
! New movies typically
release to big screen and
then release via DVD
! DVDs rent while its new
! DVD availability window
is relatively small
! Charged late fee to
maximize turns
3
Must impose steep rental fees and steeper late fees
The Red Envelope (1999-2008)
! Removed late fee as they
saw opportunity in long tail
of DVDs
! Stocked 120,000 movies
mailed out from 50 hubs
! Matched renter interest
with a low cost movie from
the long tail
! Announced $1M prize:
Help find a better
recommendation algorithm
! 4 years and a team of
10+ PhDs solved that
! In 8 years, Blockbuster,
Hollywood video et. Al.
are almost out of business
4
Recommend movies in the long tail, personalized to the customer, lowering costs
Streaming Movies – 2008 and beyond
! Netflix lets users manage their DVD
queue for what they would rent next
! Netflix had their own problems
! DVD theft
! DVD piracy
! FBI involved in the US
! Could not grow internationally with DVD
renting model
! Streaming model looked very appealing
! Cost to stream out DVD via CDN was a
few pennies but postage is 10-100 times
more
! Streaming lets them grow
internationally
! 20M US subscribers
! Started streaming to US subscribers
from their datacenter
! Datacenter faced cooling issues and
downtime
! They issued customer refunds which
directly impacted their bottom line
! Netflix at that time was making
about 1.6 billion in revenue and had
400 employees
5
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