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The Value of the Cloud: Told via Netflix Can we please THE NETFLIX STORY COST OF THE CLOUD not talk about the cost of the cloud?
NETFLIX - In The Beginning

– DVD Rentals By Mail
– Premium Subscription – 2 DVDs at a time (unlimited per month)
– $11.99 per month


Started the “I don’t need to leave my house anymore” wave – specific to rentals (The death of Blockbuster) Cheaper than a local video store if you watched more than 4 movies a month… great ROI!


It’s a DVD. Its physical. Not really that portable. Oops I forgot that DVD! If a movie was terrible…you are 4 days out to receive what's next in your DVD queue (Not flexible)


– Streaming Service
– Premium Subscription – Unlimited devices (Unlimited streaming per month)
– $15.99 per month


-Unlimited flexibility and this started the “binge watching” movement -Any device, anywhere (Including downloadable content) -Access to all you can handle viewing -Original content -Start on one device and finish on another on the fly -Great babysitting tool


- More Expensive - Bad for overall eye health?

NETFLIX - The Ultimate Cloud Story

Initial offer was cheaper, slower, less flexible but was better than what was offered before
with local video stores. However there was still infrastructure (or physical equipment),
and was slower, and not as agile.

New offer or new business model was more expensive (on paper) but it was much faster,
extremely flexible and was even better that what the company offered before.

In fact so much value that the market accepted the new model with open arms.
On average Netflix has seen about a 30% increase year over year growth since 2007.

The cloud can enable things that a physical device (infrastructure) can’t deliver. 
It can deliver MORE services faster, allow you as the end user to utilize the applications on 
any device, anywhere, and at anytime. The SKY is the limit “pun intended”
Now For The Costs...
The Costs for Cloud Services are not
Going Down
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New Functionality is Always Being Added...
For a profitable SaaS org, the revenue or additional revenue generated from subscriptions allows these organizations to continue to innovate, add more content and features, and prevents the technology from getting tired to its end users. Let's move away from the cost discussion and focus on what the cloud allows us to accomplish that traditional or legacy services or products prevent us from doing.  

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