Probably, Netflix, Inc. (NASDAQ:NFLX) won’t chose to move out of AWS anytime soon as it faces a rough path. Its price fell close to $439 per share, a dive of almost 3% during the day and a devaluation of almost 8% for the last month. Amazon.com, Inc. (NASDAQ:AMZN)’s stock value follow a similar pattern of devolution showing a decline on almost 2% for the day and about 6.5% for the last 30 days at a price close to $317. This hand-in-hand attitude can be seen also through the cohabitation these two companies have been experiencing, a feature criticized by Forbes.
Amazon.com, Inc. (NASDAQ:AMZN)’s AWS is not the best cloud service available on the market and many more are emerging with more potential and smaller fees. Consequently, Netflix, Inc. (NASDAQ:NFLX) could pursue to hedge the risk of being tied to just one supplier by unloading some of its content to other companies like Rackspace or International Business Machines Corp. (NYSE:IBM)’s Softlayer.
Netflix, Inc. (NASDAQ:NFLX)’s services rely heavily on AWS and it might not be the dream-relationship for the two in the case the streaming-content provider faces harsher competition or finds bills too large to keep up the margins. Moreover, since the company is constantly internationalizing and opening new branches in Europe, it might separate the data on different servers with various technologies, which might cause a boost of engineering knowledge for the company’s specialists.
Since Amazon.com, Inc. (NASDAQ:AMZN) has gone into media services, it might be wise for Netflix, Inc. (NASDAQ:NFLX) not to rely so blindly on the e-commerce giant. Besides, the latter business has already done very much to achieve a proper integration of its content on Amazon.com, Inc. (NASDAQ:AMZN)’s servers and it wouldn’t be that much of a headache to do it anew for a noble cause. Customers will not be influenced by the sole fact that the streams they watch are on different hardware systems from the ones the company initially chose.
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