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Amazon.com, Inc. (NASDAQ:AMZN) Tells How It Saved Netflix Inc. (NFLX)

Amazon.com, Inc. (NASDAQ:AMZN) Jeff Bezos

Amazon.com, Inc.  took one of its biggest rivals off the web last weekend only to turn around and save it in a matter of hours. A data center disruption at one of the firm’s Amazon Web Services facilities took Netflix, Inc. down last Sunday and Jeff Bezos firm just explained what happened, and how it managed to solve the problem.

Apple Inc. loses to amazon.com Inc. (NASDAQ:AMZN) earnings

In a blog post on the data center outage, the firm said that DynamoDB, a database service that handles data tables for customers, was at fault for the problems that hit Netflix and other web platforms. Many users with Amazon Web Services are using “Global Secondary Indexes,” and the servers could not respond to requests for metadata in time.

Amazon.com puts Netflix back on the web

Because of the delay the servers took themselves offline and refused access. Amazon , once it figured out that there was a problem and looked into what was causing it. Had to reset the metadata request system in order to get Netflix, IMDB, and the other platforms hit by Web Services outage, back online.

Amazon summed up the experience by saying “For us, availability is the most important feature of DynamoDB, and we will do everything we can to learn from the event and to avoid a recurrence in the future. “

Though the firm could reap rewards from having a less stable Netflix, the business as a whole would be badly maimed by any such action. Amazon relies on Netflix more than Netflix relies on Amazon. It needs to, or else the relationship as it is currently set up simply couldn’t work.

 Amazon controls the web

Much like Google has a great deal of power over the traffic that goes to sites like Amazon , Jeff Bezos’ firm has a great deal of control over how web platforms like Netflix perform. Right now Reed Hasting’s video streaming concern relies fully on Amazon for its operation.

This is the modern web, and the connections between firms that compete with each other are often stronger than the market they fight in. Google is in trouble in Europe for putting its own shopping platform ahead of those of other e-commerce firms right now, but Amazon simply doesn’t have the power to control a market like that.

Netflix  may rely on Amazon for its operation, but the bad headlines that Amazon using that position to help its competition in other spaces would likely kill the firm’s nascent Amazon Web Services segment.

The cloud platform is the service that Wall Street is most excited about right now, and those in charge of the firm aren’t too likely to kill it in order to boost viewing of Jefferey Tambor’s Transparent, or its upcoming Jeremy Clarkson-lead Top Gear spin off.

Amazon wants to make money with Web Services, and that means giving Netflix the best service that it can, despite the rivalry between the two along other lines. That’s a trend that’s going to define the firm for a long time going forward. It’s one that’s likely to come up time and time again with each service outage and change in the terms it offers Netflix.

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