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How Will Netflix Benefit from Spinnaker?

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Cloud vendors to use Spinnaker

Over the past few years, Netflix partnered with Google, Microsoft, and EMC to build Spinnaker, an open-source platform that delivers high-velocity changes to cloud software. Spinnaker, which is available through GitHub, can deploy software simultaneously across both Amazon Web Services’ and Google’s platforms, with full-feature compatibility across both cloud providers.

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Netflix empowers Amazon Web Services

Before launching Spinnaker, Netflix was highly reliable on Amazon Web Services, or AWS. Netflix shut down all of its traditional data centers, migrating to AWS. Relying solely on AWS could be risky for Netflix. If there were an outage, Netflix’s operations would be disrupted as videos wouldn’t stream. Usually, companies avoid this situation by partnering with their suppliers to gain some control over activities, or by working with various suppliers to have alternatives available.

Netflix can avoid this situation by making Spinnaker available to various cloud vendors. In return, the company could allocate its workload to data centers for video streaming, reducing its dependency on a specific vendor. By leveraging Spinnaker, Netflix can achieve a competitive edge on cost as well as revenue over its competitors by bargaining with Microsoft and Google, rather than limiting its connections to AWS.

The iShares US Technology ETF (IYW) is a portfolio of 150 stocks. Its top four stocks, Apple (AAPL), Microsoft (MSFT), Facebook (FB), and Alphabet (GOOG), constitute 18.0%, 11.6%, 6.7%, and 6.0% of the fund, respectively.

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