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Netflix, Long an AWS Customer, Tests Waters on Google Cloud

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Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#51

Earlier quoted context omitted.

I wouldn't do my own datacenter as in build out a building, but I would certainly lease a cage and build out my own infrastructure at probably half that count. As far as I know, Netflix has POP's for content delivery in many carrier facilities so it's not a pure cloud player by any means. For the cost of 1 year for a single cloud server you can buy a 52 core dell with 256gb ram and a few SSD's and have price/performa…

That's a good distinction. CoLo providers are pretty reasonably priced and most of the larger ones are good at what they do. There's a HUGE scale difference between a CoLo and your own -- as soon as you start having to negotiate diesel supply contracts yourself things get crazy fast.

I would never roll my own unless I was of facebook/google size. Colo space is abundant and affordable.

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#52

I would think if a business use more than 500 servers, it would make sense to start considering having your own datacenter?

It’s not either/or. You want to be in a position where your own racks and public cloud providers are all running instances of the same distributed scheduler. Then you can buy capacity wherever it makes the most economic sense at the moment. Just proving that you have the capability to run your own hardware cost-effectively can negotiate Amazon/Google down to that price or lower.

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#53
post #23

Earlier quoted context omitted.

> (on which they already get a huge discount) just wondering, how huge (as a percentage) that discount is?

They'll play a few games with contracts to spread the costs around (e.g. giving n% discounts for m years of reserved capacity). You probably won't get much just by saying "I can just go to GCP" and asking for the world. The more you spend, the more distinct services you buy, and the longer you want to commit the steeper the discount. I've seen up to 10% but I'm sure they do more for bigger customers.

I've seen upwards of 50% for some particularly large customers. To the point of "if we lose our discount, our company goes under".

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#54

Earlier quoted context omitted.

In general, I think it’s a wash. The margins you save on end up costing you in other ways, such as development velocity and having access to easily deployed high-scale solutions like dynamo and managed instances like RDS. it takes time and organizational know-how to get to a point where similar things can be managed in the same way as AWS. Again, there are niche segments where this might not be true, 500 constant mac…

The margins you're paying for include functionality you don't use and your own cost of integration, observation, and management of their stuff. The principal advantage of using a cloud provider is avoiding capital costs and any useful apis they have that you'd otherwise have to develop/maintain in-house.

There are lots of open source products that offer programmatic/desired state/idempotent config & apis for provisioning and hardware lifecycle management in private dc.

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#55

Earlier quoted context omitted.

Everything you'd have to pay for, Amazon or Google has to pay for for you... plus profit margin. At Netflix scale, it's almost impossible for someone else's cloud to be cheaper than running your own, and hiring the necessary staff and acquiring the necessary space and hardware to do so. I honestly have to wonder if the level of Amazon's discount for Netflix is absurd to the tune of "we lose money doing this" just to…

This is assuming you can do everything at the same efficiency level as Amazon or Google. It's likely that you wouldn't be able to outperform on these metrics to a degree that it would make the profit margin difference a wash.

The exact point I am making is that at a certain point, you are able to do things as efficiently as they are. Netflix certainly qualifies at that scale.

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#56
There are a lot of comments saying that Netflix should run its own datacenter.

Adrian Cockcraft helped lead Netflix's effort to move to AWS and now is a VP at AWS

https://www.linkedin.com/in/adriancockcroft/

He did an interview with Software Engineering Radio back in 2014 explaining their motivation.

http://www.se-radio.net/2014/12/episode-216-adrian-cockcroft...

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#57

Firstly: not very new. Hasn't Netflix been at this for a long time? Secondly, everyone should be checking. Not only is Google doing a lot of subsidization, but their services are really really good. My current employer ended up being unable to use them but it's I acutely regret every day I'm forced to build out things Google already has or deal with Amazon's frustratingly antiquated ELB infrastructure.

I’m sure you are aware but AWS has a newish loaf balancer now: https://docs.aws.amazon.com/elasticloadbalancing/latest/appl...

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#58
post #35

Earlier quoted context omitted.

You don't have to be Netflix to get AWS, GCP and MS to play against each on pricing. I've seen a number of my clients build a prototype on each platforms, and then use it to make final decision. Part of that final decision is having the cloud vendors compete on price. I personally haven't seen any massive price breaks, but there definitely is room the margins.

For years Dell would let it "leak" out to the press that they were looking at supporting AMD chips. It would happen every year like clockwork. Then after a month you'd hear that Dell and Intel had come up with a new deal to remain Intel exclusive.

Hasn't Dell offered AMD chips for a long time? Dell currently sells AMD-based laptops, and was doing so back in 2008 as well.

For example, this Ryzen laptop: http://www.dell.com/en-us/shop/dell-laptops/new-inspiron-15-...

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#59

Earlier quoted context omitted.

I completely agree. I jokingly tell everyone I know using AWS to "not use us-east1" and that they need to use another region not just AZs...and they always laugh and say "you were right" with us-east goes down. At least from my view, there's a difference in backbone versus corporate space networking, but you're right, most everyone won't ever realize any savings from that side of things.

How often does us-east-1 go down? I know of about 4 big outages in the last 7 years but you're making it sound like it happens much more frequently. Is there a list of outages somewhere?

it's not just about it going down.. if you rely only on us-east they have had multiple times when you couldn't autoscale because there was no more capacity... if you rely on running lean and scale/up/scale down events us-east would have bitten your ass a lot the past year... Just for comparison sake even our private colo has had 0 issues the past decade that caused any interruptions to service

Re: Netflix, Long an AWS Customer, Tests Waters on Google Cloud

#60
My prediction is that by 2020 Netflix will move a significant portion of their IT to Google Cloud.

Why? Most of their architecture is microservices / linux containers / serverless, and Google is simply way better positioned there (with Kubernetes as their crown jewel). They will eventually win.

Source: no source, just my "expert" opinion (6 years at AWS, 2 at VMware's cloud, currently CEO at a startup).

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