Sequoia Warns Founders of ‘Crucible Moment,’ Advises How to ‘Avoid the Death Spiral’

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Netflix CEO Reed Hastings speaking in Tokyo in 2016. Photo: Bloomberg
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Netflix, Long an AWS Customer, Tests Waters on Google Cloud

Photo: Netflix CEO Reed Hastings speaking in Tokyo in 2016. Photo: Bloomberg

Netflix, one of Amazon Web Services’ biggest customers, is expanding its use of Google Cloud, one of AWS’s biggest rivals, according to two people with knowledge of the matter. The move, which hasn’t previously been reported, could portend a shift in the balance of power in the cloud computing market.

Netflix is using Google Cloud for several functions, including the service’s artificial intelligence capability, said one of the people. In addition, Netflix has begun using Google Cloud to run applications that span large numbers of machines, said the second person with knowledge of Netflix’s usage. Netflix also stores some "business-critical data" on Google Cloud as a backup to recover quickly after disasters, said a person close to Netflix. It isn’t clear if Netflix is using Google Cloud services in the commercial video-streaming service it sells to customers, or only for research and software testing purposes.

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