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Netflix cloud architecture...continued

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Netflix cloud architecture...continued

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Netflix cloud architecture...continued

  1. 1. Netflix Cloud Architecture1
  2. 2. Netflix Business Strategy 2 Remove Late Fee Provide Choice from Long Tail Ubiquitous Anytime access
  3. 3. Incumbents in 1997 ¨  Blockbuster, Hollywood Videos, Movie Gallery ¤  Rented DVDs out from prime locations ¤  Kept inventory of about 2000 titles with 3 to 4 copies of each ¤  Mostly expensive DVDs with new movies and some long time hits ¨  New movies typically release to big screen and then release via DVD ¨  DVDs rent while its new ¨  DVD availability window is relatively small ¨  Charged late fee to maximize turns 3 Must impose steep rental fees and steeper late fees
  4. 4. The Red Envelope (1999-2008) ¨  Removed late fee as they saw opportunity in long tail of DVDs ¨  Stocked 120,000 movies mailed out from 50 hubs ¨  Matched renter interest with a low cost movie from the long tail ¨  Announced $1M prize: Help find a better recommendation algorithm ¨  4 years and a team of 10+ PhDs solved that ¨  In 8 years, Blockbuster, Hollywood video et. Al. are almost out of business 4 Recommend movies in the long tail, personalized to the customer, lowering costs
  5. 5. Streaming Movies – 2008 and beyond ¨  Netflix lets users manage their DVD queue for what they would rent next ¨  Netflix had their own problems ¤  DVD theft ¤  DVD piracy ¤  FBI involved in the US ¤  Could not grow internationally with DVD renting model ¨  Streaming model looked very appealing ¨  Cost to stream out DVD via CDN was a few pennies but postage is 10-100 times more ¨  Streaming lets them grow internationally ¨  20M US subscribers ¨  Started streaming to US subscribers from their datacenter ¨  Datacenter faced cooling issues and downtime ¨  They issued customer refunds which directly impacted their bottom line ¨  Netflix at that time was making about 1.6 billion in revenue and had 400 employees 5
  6. 6. Netflix Decisions 6 ¨  Who will manage the streaming backend? ¨  What devices will users watch streaming content on? ¨  On the client end ¤  What should be the client experience? ¤  Should Netflix create their own device? ¤  Should Netflix partner with device makers? ¤  If so, which device makers should Netflix pursue? ¤  What about DRM to prevent piracy and honor IP? ¨  On the cloud end ¤  Who will manage the streaming backend? ¤  Who will maintain and upkeep the data center? ¤  How to deal with data center growth?
  7. 7. 7 Take a break from PowerPoint. Class discusses the case.
  8. 8. On the Client End8
  9. 9. Decided against creating own device 9 ¨  HDMI ports on household TVs were already occupied by a variety of devices ¨  Introducing one more Netflix device wasn’t the best
  10. 10. Partnerships with Device makers 10 ¨  Grew subscribers 2008-2010 by partnering with device makers ¤  Game Consoles n  Xbox 360, Wii, PS3 ¤  Mobile Devices n  Apple iPad, iPhone, iPod Touch, Windows Phone 7 n  Android was not in this list until late 2011 (DRM concerns)
  11. 11. On the Cloud End11
  12. 12. Netflix Cloud Story 12 ¨  Circa 2008, Netflix had a single data center ¤  Single point of failure (SPOF) ¤  Approaching the limits on n  Cooling n  Power n  Physical space n  Network traffic capacity
  13. 13. Netflix Cloud Story 13 ¨  Strategic choices included: ¤  Build more data centers n  Manage more data centers ¤  Outsource capacity planning and scale out n  Focus on core competency
  14. 14. Netflix Cloud Story 14 ¨  Winning Choice: ¤ Outsource capacity planning and scale out n Leverage a leading IAAS provider n  Amazon Web Services ¨  In  two  years,  from  start  of  outsourcing,  Netflix  served  over  90%  traffic  out  of  AWS   ¨  This  excluded  video  streaming  traffic  which  came  from  CDNs  
  15. 15. How Netflix Uses AWS 15 ¨  AWS provided various IAAS offering at that time but Netflix apps needed more •  Data SimpleDB,RDS,S3, EBS •  Load Handling EC2, EMR, ASG, ELB •  Monitoring CloudWatch AWS ?   Netflix apps
  16. 16. Netflix developers filled the gap 16 ¨  Netflix developers ported Netflix platform to the AWS AWS Netflix Platform Netflix App Netflix Platform •  Platform.JAR •  Middle-tier Load Balancing •  Discovery •  Encryption Services •  Caching •  Configuration
  17. 17. How Netflix Used AWS 17 ELB EC2 EC2 EC2 EC2 EC2 EC2 instances for Q EC2 instances for merch Simple DB S3 SQS Edge services (such as www) Netflix mid-tier services (such as Q or merchandizing) AWS IAAS ?
  18. 18. How Netflix Used AWS 18 ELB EC2 EC2 EC2 EC2 EC2 Middle Tier Load Balancer and Discovery EC2 instances for Q EC2 instances for merch Simple DB S3 SQS Edge services (such as www) Netflix mid-tier services (such as Q or merchandizing) AWS IAAS Netflix platform
  19. 19. Netflix stack on EC2 19 Netflix Application Platform and other infrastructure jar files Guest OS/Virtual Machine/Host OS/Machine Discovery client Mid tier load balancer Crypto Client S3 client Simple DB client SQS client Configuration client
  20. 20. Persistent Data: Simple DB 20 ¨  Moved large transactional dataset to Simple DB ¤  Rental history info: Everything that any one has watched on Netflix (including streaming and DVD rentals) ¨  Netflix uses Simple DB to manage ¤  Thousands of domains ¤  Over 1Tera byte of online transaction data ¤  Billions of rows of data
  21. 21. Persistent Storage: S3 21 ¨  Simple key-value store organized as objects in buckets ¤  Each AWS account can create multiple buckets ¤  Each bucket can hold unlimited number of objects ¨  Netflix uses S3 to store data that does not fit into Simple DB ¤  Logs from streaming devices ¤  Files used in movie encoding ¤  Truncated tail of rental history
  22. 22. Data Replication: Item Replicator 22 ¨  IR: Item Replicator: Netflix homegrown solution ¨  Keeps data in sync between Data Center and Cloud ¤  Replication is mostly unidirectional n  Data Center to the Cloud
  23. 23. Netflix Migration to Cloud 23 ¨  Netflix case is just one example. ¨  There are several cases of businesses in a variety of industry that are migrating to the cloud
  24. 24. Questions24
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