Three years ago Netflix, Inc. (NASDAQ:NFLX) had detected a database error that caused their DVD shipping system to fail due to a hardware error. This is why they are switching to Web Services hosted by Amazon.com, Inc. (NASDAQ:AMZN).
Some people believe that cloud services are risky because Amazon’s Web Services shares resources among other clients. However Netflix believes that Amazon’s redundant architecture and millions of servers are more dependable than Java web apps that run on Oracle databases.
Amazon Web Services vice president Adam Selipsky said that Netflix has many engineers that could set up data centers, but they have intentionally not done so. Instead they wanted to focus their energy on making Netflix better for consumers.
Amazon AWS launched Simple Storage Service (S3) in March 2006. Amazon’s AWS grew about 155% last year. AWS stored 260 billion objects at the end of 2010 and 102 billion files at the end of 2009.