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Big News from Netflix

It’s official: Netflix has acknowledged plans to close its last privately owned data center in the next few months. This decision means the company will be one of the first of its size to rely solely on public cloud storage.

If you’ve been following updates about Netflix’s IT infrastructure over the past few years, you know that this shift has been happening since 2008. (One source says it began eight years ago after the company experienced a significant hardware failure at its own data center.)

Netflix’s provider of choice is Amazon Web Service, but it’s interesting to note that Amazon doesn’t run its own business entirely on the cloud. Amazon also competes with Netflix on some level with its video streaming services.

Netflix’s intriguing decision to move 100% to the public cloud brings some fascinating conversations to the table …

What This News Means

• Will other large organizations follow suit and move entirely to the cloud?

“A 100% cloud operation is going to be extremely rare for big, established companies,” says Forrester Research VP and Research Director Glenn O’Donnell in a Wall Street Journal article. While it’s easier for smaller businesses to rely solely on the public cloud, the move by Netflix may cause other companies to consider the potential value.

• How does company size or age impact cloud adoption?

By 2020, more than half of small and mid-sized businesses surveyed by BetterCloud expect to run their IT operations in the cloud. Large companies, however, are a little slower to adapt: The survey indicates that 50% of enterprise organizations will run their IT in the cloud by 2025. Over time, this gap is likely to shrink.

• Does a move to the cloud help eliminate issues with downtime?

Depending on the situation, a move to the cloud can help protect against business continuity lapses. Some data center managers and directors indicate that it’s a relief to not worry about hardware, power, redundancy and program availability when IT operations are in the cloud. The cloud also makes sure your data is still accessible in the event of a fire, flood, hurricane or other disaster situation at your organization.

Stay Informed

Cloud adoption may be in its infancy, but perhaps not for long: The BetterCloud survey we referenced earlier indicates that the number of companies running IT operations in the cloud isincreasing rapidly.

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