Netflix Gets in on Amazon's Cloud 
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Written by Dick Ward   
Wednesday, 21 April 2010

Earlier this year Netflix made a decision that, at least at first glance, may seem a bit odd.  Rather than continuing to host the thousands of streaming movies and television shows they have locally, they moved the content over to Amazon’s servers.

The reason is simple: server farms are expensive.  Netflix VP of engineering Kevin McEntee says that they were faced with a choice and decided to, "focus our innovation around finding movies, rather than building larger and larger data centers."

So now, rather than having all assets locally, Netflix has its content in the cloud, the term used to describe this kind of remote operation.  Websites have long been hosted elsewhere, but content is finally getting the cloud treatment.

It’s not just because Amazon and Netflix are separate companies that this comes as a surprise, but that in the DVD and VOD marketplaces, they’re direct competitors.  "It’s in their interest to make us successful in the cloud," says McEntee. "That’s why we felt comfortable."

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