Newsweek and Amazon Web Services
A significant move happened in the online publishing world this week and it is a sign of things to come for any online publishing company that is burning money managing their own hosting operations.
Newsweek.com announced this week that the site is outsourcing its Web site hosting duties to Amazon, joining a small but growing number of companies experimenting with cloud computing.
“Until now, Newsweek.com had been hosted by its parent company, The Washington Post Co. The media company has been trying to cut losses at its magazine division, which recorded $29.3 million in operating losses in 2009. By joining the cloud, Newsweek expects to save close to $500,000 annually.
“It saves Newsweek money,” said Geoff Reiss, vp, general manager, Newsweek Digital.
“Lots of people out there built their own infrastructure and are going to be tortured by this idea of sunk costs.”
Kontexto started using Amazon Web Services in early 2008 and now our whole real time content analytics platform is built on the Amazon cloud. We have always been lobbing the idea around of launching a cloud based news infrastructure that takes care of everything post publishing including storage, search, delivery and analytics. Give the CMS and editing freedom to the content creators, but hand off everything else.
After newsweek.com, it is hard to say who will be the next to transition hosting to the cloud. Some other certainly have without announcing it. But it is good to see a brand name publication make an organizational shift to the cloud.
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