Netflix Moves to Control Cloud Computing Cost With AWS 

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As part of its ongoing cost-cutting efforts, Netflix is reportedly pushing to better control rising cloud computing spending with longtime cloud partner Amazon Web Services AWS.

Netflix’s unexpected collaboration with Microsoft to launch its ad-supported plan later this year could provide a replacement for AWS in the future. This, however, may jeopardize the relationship between Netflix, its longtime partner AWS, and its new partner Microsoft, which owns Azure, its own cloud storage company.

In addition to cost-cutting measures, Netflix wants to hire more junior employees, reduce its real estate presence, limit corporate swag, minimize the number of copies of data and content it stores, and even limit the number of branded items employees can order, such as coffee mugs, sweatshirts, and baby goods.

Netflix, which is struggling with subscriber losses and growing competition from companies such as Walt Disney Co. and Apple Inc., lost 970,000 subscribers and laid off 300 employees in the June quarter, about 4% of its workforce this year. Not surprisingly, Netflix is trying to limit growth as it aims to increase its subscriber base to 500 million global customers over the next three years.

The sources for this piece include an article in Reuters.


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