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Netflix moves to Amazon's cloud

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According to The New York Times, Netflix is outsourcing its hosting to Amazon’s EC2 cloud service. What makes this so interesting is that Amazon is the company’s competitor.

The two industry players are currently duking it out for control over the video-on-demand market. I find it very amusing that Netflix is now helping improve its rival’s profits. The savings as a result of the switch must be substantial, otherwise why would the DVD rental company make the switch?

Besides being less expensive, outsourcing hosting makes it easier for the company to focus on its other operations. The switch has already begun and will be completed in two years.

Photo | Flickr

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