Netflix Closed Their Last Information Center – Ought to You Do The Similar?

The Netflix announcement back in August of 2015 wasn’t a pretty big deal. In fact it almost certainly went unnoticed by most people. Nevertheless, from the point of view of those of us with the CIO job, it was sorta like a bomb had gone off. The business sent an email out that announced that in a month they planned on shutting down their quite last operational information center. What this implies is that they are now operating their company entirely in “the cloud”. Must you be doing this?

How Netflix Moved To The Cloud

As important as this move into the cloud is, what we CIOs want to maintain in thoughts is that Netflix understands the significance of data technologies and has normally had a strong commitment to applying the cloud. If you think about their business enterprise for just a moment, it really is just about a poster child for a cloud-based firm. Every month Netflix attempts to each sign up further consumers for their DVD delivery and, extra recently, their video streaming service. At the similar time they attempt to retain the consumers that they currently have. The finish outcome of all of this is that their IT demands are growing by leaps and bounds.

In , Netflix was careful to point out that for their video streaming service, they have been 100% cloud based for their customer facing systems for quite some time. Netflix’s choice to move all of its operations into the cloud was not a decision that they reached overnight. Rather, this has been a 7 year project that is only now coming to a close.

Netflix created the selection to move all of their IT operations into the cloud after the company seasoned a significant hardware failure back in 2008. The subsequent year was when they 1st got critical about moving their company’s applications into the cloud. The very first of these applications to make the transition was the company’s jobs page on its site. Following this they moved their video player, their iPhone connected technologies, discovery / search functionality, and their accounts pages. They moved their Huge Information platform into the cloud back in 2013 and their billing and payments processing made the trip in 2014.

What It Implies To Be Entirely In The Cloud

Netflix’s program to shut down their final information center makes them exceptional. They are going to be a single of the very first significant firms to completely move their IT operations into the cloud. According to a recent survey, about 12% of firms presently run all of their IT operations in the cloud. What’s interesting about this statistic is that most of these firms are tiny or medium sized businesses – nowhere close to the size of Netflix. This is changing. The experts predict that by 2022 they believe that 20% of huge enterprise providers will be operating completely in the cloud.

Moving totally to the cloud is not a thing that most huge providers can do easily. The reason for this is because of the sensitive company software that several larger companies run either in their personal information centers or on devoted cloud resources provided by an additional business. Any particular person in the CIO position knows that it is the legacy applications that we all have that will constantly prove to be the hardest to migrate into the cloud.

If you want to move all of your IT operations into the cloud, you are going to have to pick the proper cloud companion to group with. In the case of Netflix they have chosen Amazon and their Amazon Web Services offering to host all of the Netflix applications. Netflix is prepared to admit that they are now “… completely reliant on Amazon Net Services… ” The advantage of switching to this architecture is that Netflix no longer has to estimate months in advance how numerous servers they are going to need in order to serve their growing base of subscribers. When they require more servers, they can just get in touch with Amazon and the servers will be turned up that similar day.

What All Of This Implies For You

Netflix issued a press release that contained some startling info. They are in the procedure of closing down their last information center and moving the company’s entire IT operations into the cloud. For a organization of the size of Netflix, this is virtually unheard of. How did they do it?

What we require to understand is that they have been a large user of cloud services for fairly some time. Just about all of their consumer facing IT operations have been cloud primarily based for a although. Simply because of their partnership with Amazon, they have been capable to standardize the cloud that they are applying. This has permitted them to move much more and extra of their corporation IT operations into the cloud more than the past 7 years. What other CIOs need to have to comprehend is that Netflix has identified a way to solve the challenge of either swapping out or moving their legacy applications into the cloud.

It really is quite clear for the rest of us CIOs: we are all going to be moving all of our IT operations into the cloud more than time. No, it could not occur this year or even next year, but it will sooner or later take place. Netflix is showing us the way. If they can resolve all of the exact same challenges that we are facing, then we really should be able to ultimately make the switch. Looks like it really is time to get started thinking about an all cloud primarily based future!