Successful companies, while focusing on their current customers’ needs, often fail to embrace dis...
Successful companies, while focusing on their current customers’ needs, often fail to embrace disruptive technologies and business models. This phenomenon, known as the "Innovator’s Dilemma," eventually leads to many companies’ downfall and is especially relevant in the fast-paced world of online services. In order to protect its leading position and grow its share of the highly competitive global digital streaming market, Netflix has to continuously increase the pace of innovation by constantly refining recommendation algorithms and adding new product features, while maintaining a high level of service uptime. The Netflix streaming platform consists of hundreds of microservices that are constantly evolving, and even the smallest production change may cause a cascading failure that can bring the entire service down. We face a new kind of Innovator’s Dilemma, where product changes may not only disrupt the business model but also cause production outages that deny customers service access. This talk will describe various architectural, operational and organizational changes adopted by Netflix in order to reconcile rapid innovation with service availability.