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Netflix Loses Its Cloud Guru to a VC Firm

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Re: Netflix Loses Its Cloud Guru to a VC Firm

#21
post #8

Does Netflix get special pricing for AWS? With their scale, they could probably negotiate with Amazon for lower rates.

Not only Netflix they get some better price (I have no info but it will not be surprising) but I have even heard that Netflix do work with the AWS team to test first some new features before AWS release it to a larger public. I have even heard that a couple AWS service were in fact created because Netflix was asking for it. Netflix being probably the most visible company on AWS, I am sure they do have some special de…

This type of relationship is common with firms and their largest leading edge customers. It helps both, and it pushes the market.

Re: Netflix Loses Its Cloud Guru to a VC Firm

#22
post #18
post #16

Earlier quoted context omitted.

One thing to note about a lot of "infrastructure" businesses is it can make business sense for them to offer deep discounts to large customers to cover their overhead - they then make their profit by selling whatever excess capacity is left over to smaller customers. I.e. imagine you want to setup a new courier business. You convince Amazon to move all their shipping to your new courier company, by giving them a pric…

Although, scary business model if you lose that customer

True. Get them to be an investor in your firm, and that risk is reduced.
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