NETFLIX

 Mengapa company memutuskan untuk move to cloud? Mengapa tidak stay pada physical
data center? Sertakan analisa secara financial atau non-financial.

Past technology:
- Understanding individual customer’s taste (Collaborative filtering by customers rating
films they watch, Building movie and TV shows genre information database).
- Quick delivery of DVD (Warehouses are distributed across the country, DVD inventory
database for each warehouse is maintained).
Current technology:
- Leveraging customer meta data (Holds one of the largest database warehouses of
customer preferences, Leverage the Amazon’s Storage Service (S3) to minimize cost).
- Streaming videos (Multiple device types: iPhone, Android, Smart TV, etc).

As shown in the diagram, Netflix witnessed a tremendous increase in streaming

hours from 2008 onwards. This was complemented with the company’s decision to
migrate to the cloud.

Cloud service company: Amazon Web Service (AWS)

Mengapa company memutuskan untuk move to cloud? Mengapa tidak stay pada physical
data center?
 In 2008, Netflix was shut down for three days because of an accident in their computer
room. Their main business was to mail DVDs. Due to the crush of their computer room,
Netflix was unable to access user information on the Internet and its internal operation
was in a mess. Netflix began to think about the possibility of moving all data centers to
the cloud, because no matter how rigorous the physical room is, it may encounter
errors, let alone the limitations of the physical room, which is unable to adjust
resiliently to the peak. Faced with this situation, Netflix is determined to invest.
Amazon Web Services (AWS) is fully installed in the material center.
 In 2010, Netflix is determined to enter the international market. They decided to use the
form of streaming services to reach global consumers. If we want to complete the
streaming business with the physical computer room, the cost of building and
maintaining the computer room will be considerable. After rental customers switched to
streaming service, the traffic growth of Netflix data center is at least 1,000 times that of
the past, and as long as 0.1% of users switched to streaming service, the number of
Netflix rooms will double.
Financial:
- Dengan keputusan untuk move to cloud, terdapat cost reduction. Netflix’s costs were
cutting down to fractions per server. This not only helped them save money but also
created an opportunity for them to add more features.

Non-financial:
- Pada physical data center, server fisik dengan jumlah besar akan memakan biaya, daya
dan tempat yang besar namun hanya memiliki daya tampung yang terbatas.
- Pada physical data center, sering terjadi downtime yang diakibatkan proses
pemeliharaan atau apabila ada kerusakan maupun system failure.
- Untuk membangun data center, akan membutuhkan perencanaan dan detail untuk
membangun dan memelihara infrastrukturnya.
- Adanya migrasi ke cloud dapat meningkatkan scalability dan ketersediaan layanan
Netflix serta kecepatan yang digunakan perusahaan untuk merilis konten, fitur,
interfaces, dan interaksi baru.

 Setelah move to cloud, maturity level-nya naik atau turun?

a) Developing and maintaining system (maturity level 1)
Netflix experienced a major database corruption and for three days couldn’t ship
DVD’s to their members. That is when Netflix realized that they had to move away
from vertically scaled single points of failure, like relational databases in their
datacenter, towards highly reliable, horizontally scalable, distributed systems in the
cloud. Then Netflix chose Amazon Web Services as their cloud provider because it
provided them with the greatest and the broadest set of services and features.

b) Managing supplier relationship (maturity level 1)

Netflix make a good relationship with their partner as cloud provider Amazon Web
Service (AWS).
The AWS Cloud offers a whole host of different Cloud services across categories such
as storage, networking and data warehousing. Integrating these services into your
existing processes can help ease your move to the Cloud.
One of AWS’s most popular services, and up until recently its fastest-growing, is
Amazon Redshift.
Redshift has revolutionised data warehousing, allowing users to handle petabyte-scale
data volumes, quickly, easily and more cost effectively.
c) Managing data, information, and knowledge (maturity level 1, 2)
Netflix product itself has continued to evolve rapidly, incorporating many new resource
hungry features and relying on ever growing volumes of data. Netflix rely on the cloud
for all of their scalable computing and storage needs, their business logic, distributed
databases and big data processing/analytics, recommendations, transcoding, and
hundreds of other functions that make up the Netflix application.

d) Managing internet and network systems (maturity level 1, 2)

Untuk infrastructure internet, one third of internet traffic is due to Netflix
streaming. Netflix consumes 15% of the world’s internet traffic. According to a recent
report by bandwidth management, Netflix is the number one downstream application in
the world. Clever use of bandwidth and network management is needed to deliver
immersive video experiences.

e) Managing human resources (maturity level 1)

f) Operating the data center (maturity level 1)

The company began moving to Amazon’s AWS after a major failure in its
data center in 2008. In 2008, Netflix was shut down for three days because of an
accident in their computer room. Their main business was to mail DVDs. Due to the
crush of their computer room, Netflix was unable to access user information on the
Internet and its internal operation was in a mess.

g) Providing general support (maturity level 1)

Amazon Web Service provide a whole hos of different cloud services across categories
such as storage, networking, and data warehousing. By partnership with AWS it can
make the Netflix security system more safe also support all the process to be faster and
effective through API.

h) Planning for business discontinuities (maturity level 1)

Netflix introduces streaming services that can make user watch the film and TV show
directly. Furthermore they make partnership with electronic company to do streaming
for instance Xbox 360, Bluray recorder, PS3, and Apple Product (iPhone, iPad), etc.

i) Innovating current processes (maturity level 2)

j) Establishing architecture platforms and standards (maturity level 2)

k) Promoting enterprise security (maturity level 2)

l) Anticipating new technologies (maturity level 3)

m) Participating in setting and implementing strategic goals (maturity level 3)

 Netflix Inc.’s corporate mission is “To entertain the world.”

The main points of Netflix’s corporate mission statement:

1. Entertainment
2. Worldwide scale

For example, to effectively entertain the world, the movie streaming business
must grow its membership to a larger global scale. This is where the second point of
Netflix’s corporate mission comes in, as the corporation aims to reach audiences
globally.

Netflix Inc.’s corporate vision is “To continue being one of the leading firms of the
internet entertainment era.”

Netflix’s corporate vision statement has the following main points:

1. Continuing leadership
2. Internet
3. Entertainment

The “Internet” part of the corporate vision statement represents online media as a
primary factor in business operations.

n) Integrating the use of social IT (maturity level 3)