Netflix, Long an AWS Customer, Tests Waters on Google Cloud
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I'm guessing there's some project getting underway to move/duplicate some subset of resources hosted in AWS on GCP. It's likely a huge project that dwarfs most corporations entire cloud presence, but I'm guessing for Netflix it's a small piece of a giant puzzle, and that the vast majority of their operations are still centered at AWS and will be for years and years to come.
I personally haven't seen any massive price breaks, but there definitely is room the margins.
For example, this Ryzen laptop: http://www.dell.com/en-us/shop/dell-laptops/new-inspiron-15-...
It was occurring at a time when AMD was fairly firmly beating Intel on a straight $/performance basis (~K6 era). If Dell had started shipping AMD based systems back then it could have been a big game changer.
The general narrative around the tech press at the time was that Intel knew this and were desperate to keep Dell as Intel exclusive.
It would also require an architecture that supports multiple interfaces. Totally doable (the facade pattern comes to mind) but you'd want to calculate the TCO to see it works out financially.
Some of our stuff dynamically utilizes other CDNs. A customer might go try and test deploy something and we might use (AWS or whatever) to do it.
It's CDNs all the way down.
We should rename our product "Infinite Regress" ;-)
We the whole stack for most people, but also run our software on "private cdns" for some. We primarily target devs: https://fly.io
I've seen too many companies turn extractive (including, of course, that same Microsoft) to ever use the words "final" next to "platform decision".
just wondering, how huge (as a percentage) that discount is?
"We have $500M available this year that we can spend to lock in $1B in revenue. If you give us $1B in revenue, we would spend $500M on helping you to achieve your objectives. If you give us $100M in revenue, we give spend $50M in helping you to achieve your objectives"
So say I need to spend $10M on some project and I am looking at $20M of spend on hosting. You are offering me 10M CAF. I spend $20M on hosting, and 0 on some other project - instead you spend your 10M CAF on helping me with my project, which of course looks really good on my books.
AWS managed services literally sit behind billions of devices, a scale that makes Netflix look small in comparison: https://techcrunch.com/2018/02/27/apple-now-relies-on-google...
It was used in this manner by Charles Dickens, James Joyce and American authors as well.
Although, it pisses me off when I hear it used that way.
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.
Also, prefetch is absolutely incredible for webapps and I'm trying to get my peers at my current employer to embrace it even if it's not well supported in AWS.
Also as mentioned elsewhere, ALB or NLB might do what you want, either working the same way as regular ELB or via the same workarounds.
Now, I've been TOLD by ___________________________________ this is actually because it's a pain in the butt and they're working to fix it, but AWS's budget seems to favor new shinies over iterating on the existing environment. Look how long it took us to get a new and less buggy AWS dashboard and that still hasn't propagated to all the internal services.
I could go on. For example, my experience is that GCE's and even Azure's I/O and networking is way faster, more consistent and more reliable than AWSs. I host all my dev boxes on GCE because using an attached drive (so I can de/re-provision to save on costs) is much less agonizing. Also: google has some AMAZING database products that category kill whole infrastructure tasks. It's a very good kind of vendor lock-in when they can say, "You can't move away because no one else has found a way to provide our feature set."
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...
I always get a bad taste in my mouth when I read things like that. Was it really an objective choice, or was this AWS’ way of saying “thank you” ?
He wasn't hired by AWS because he migrated datacenters to the cloud. He was hired by AWS because he created this: https://netflix.github.io/ - Netflix's OSS, which has allowed them to attract so much great talent, was a direct result of Adrian's passionate open source advocacy. He's doing the same thing at AWS now, and has already accomplished great things like open sourcing all of the AWS documentation.
Disclaimer: work at AWS.
I'd be interested to see where the AI/ML frameworks differ though, and what additional value one can extract using GCP versus AWS and at what cost/presumptions.
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).
It's all trade-offs.
To drive the second point home, GCP recently released VPC Flow Logs, while AWS has had it for a good while now.
Toolchains are maturing. They’ve figured out ways to get multiple uses from the same hardware. They shouldn’t be beholden to the rollout or geographical plans of two cloud providers.
I don’t even mean build out their entire infrastructure. I think even running your base load on your own hardware makes you understand your cloud situation much more profoundly.
https://media.netflix.com/en/company-blog/completing-the-net...
This was a big deal in 2008 :)
(Maybe there's an even bigger size where it no longer makes sense for them to outsource this, but bidding GCP and AWS against each other seems like a reasonable strategy for their use-case).
Amazon, on the other hand, will partner and make nice with competitors until they're ready to abandon them. Amazon is planning on supplanting FedEx and UPS and already has its own fleet of cargo planes. Amazon is great for business until they decide they don't need you anymore.
If your 500 servers are for storage, S3/GCS will beat you in cost. For compute, that might be a different story, but then you still have to consider regionality, networking, etc.
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.
I can vaguely recall over the past several years single availability zones having short periods of time where single instance types were unavailable, but never the entire region... The idea that this happens "a lot in the past year" for the entire region isn't my experience at all.
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 retain them. AWS may need Netflix, to make serving it's smaller clients economically viable, more than Netflix needs AWS.
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/performance ratios that heavily scale in your favor and with a scheduler like marathon, k8s, nomad you can easily achieve elasticity in a private colo to a large degree without also marrying yourself to cloud specifics and nothing would stop you from peering with major cloud providers for seasonal elastic needs.
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.
With Netflix's Open Connect (https://openconnect.netflix.com/en/) system, most residential Internet Service Providers have appliances at the regional point of interconnection. These appliances are inside of or directly connected to the ISP's network in the region. Back in 2016 they had appliances deployed to over 1,000 locations. Content is pre-positioned during off-peak hours to the appliances.
Previously Netflix has been open about how they use AWS for "generic, scalable computing" including "all of the logic of the application interface, the content discovery and selection experience, recommendation algorithms, transcoding, etc."
At the time, they claimed that one of the advantages of doing this was the ease of use and growing commoditization of the “cloud” market, so it makes sense that they are evaluating alternative cloud providers for these commodity services.
Consul -> ParameterStore
Vault -> KMS/Cognito/IAM
Nomad -> Elastic Container Services/Fargate (serverless Docker)/Lambda
SQL Server -> RDS -> Aurora
Memcached -> ElastiCache (Memcached protocol)
Consul+Fabio (service discovery/load balancing) -> Elastic Load Balancers/Route 53/Autoscaling
VSTS (MS's hosted CI/CD platform) -> AWS Code Build/Code Deploy/Code Pipeline
"not marrying yourself to a one cloud provider" is equivalent to "coding using a repository pattern to access the database" in both cases people claim to not wanting to tie themselves to one vendor and then they realize that they aren't taking advantage of what the vendor has to offer.
In my experience, no one wants to go through the pain of moving to another vendor just to save a little money.
On top of that you need to hire specialists, and 24/7 noc teams, for making sure your site is always up. And it’s not just one, you need a minimum of two, geographically separated so that they are not effected by the same fire, earthquake, power outage from ice/wind/electrical storms.
At the end of the day, You need to beat AWS’ profit margin, and you still would have a huge amount of difficulty being able to match the uptime that you get when you’re so easily able to distribute services across regions and availability zones that are resilient to all the real world problems listed above. And all of those do happen.
Even for the largest of companies, I’m not sure it makes sense to compete with these services except in the most niche of markets (like dropbox and storage).
Again, there are niche segments where this might not be true, 500 constant machines churning through massive datasets all day-long, etc, might fall into that category, but it’s not slam dunk.
$X in CapEx makes balance sheet look better than $X in OpEx.
Businesses in well-known markets can start estimating their costs + potential revenue early, and optimize early. But for a business that might "pivot" a few times before finding "fit", how do you do it? You just look at time (runway: burn rate * remaining capital) you have to try stuff.
It's not great, but I can understand why some people do it.
I keep being amazed that total business failures that result in pivots are considered to be successes in the startup world.
Netflix is all about content delivery -- which is both distributed and highly variable over the day/year.
Using Cloud means Netflix can deploy closer to the customer. Plus scale up and down as required. If they did this themselves it would be quite expensive and involve a lot of redundancy.
[1] https://media.netflix.com/en/company-blog/how-netflix-works-...
The rise of containers and Kubernetes makes this even easier now. It'll be interesting to see how the clouds differentiate beyond this as most managed services are still rather underwhelming compared to the hype and are also often beat by Kubernetes deployments if available.
Edit: Since this is being downvoted, here is the proof: https://screenshots.firefox.com/bgD6FxWvQS4e0sB2/www.theinfo...
I have no issue with paywalled-content, it should just be noted that this is, at least for some readers.
However, I'm a subscriber to The Information so here's a share link: https://go.theinformation.com/f2b133baedc57a8c - I think it requres an email, alas, but it's something if people are desperate to read the story.
etflix, one of Amazon Web Services’ biggest customers, is expanding its use of Google Cloud, AWS’s biggest rival, according to two people with knowledge of the matter. The move, which hasn’t previously been reported, could portend a shift in the balance of power in the cloud computing market
AWS sales teams are quite responsive to threats of moving in terms of continuing discounts. I've drawn up migration plans solely to use as leverage against AWS for deep discounts in the past.
I read their privacy policy but it was so mealy mouthed it's hard to make heads or tails of to a non-lawyer.
I can't speak for Netflix's privacy policy, but, if your concern is with Google, we never ever ever ever mix/merge Google customer data with customer data. Like ever ever ever.
FWIW, we STRONGLY suggest (just to be doubly sure) that you encrypt at rest and/or offer the option to use Customer Supplied Keys. Encrypt all the things! https://cloud.google.com/security/encryption-at-rest/