News Corp's cloud migration journey started with an urgent challenge in 2013: relocating dozens of applications from a Hong Kong colocation facility slated for demolition. This initial six-week migration to AWS not only cut operational costs by 40% but also laid the groundwork for a complete overhaul of their global infrastructure. Over the years, News Corp transitioned from 56 data centers to six, modernized its systems, and adopted cloud-first strategies to save over $100 million.
Key Highlights:
- Initial Migration: Dow Jones' Asia-Pacific operations moved to AWS in six weeks, reducing costs by 40%.
- Infrastructure Overhaul: Consolidated 56 data centers into six, improving efficiency and cutting costs.
- Advanced Cloud Architecture: Shifted to a multi-VPC Hub/Spoke model for scalability and better resource management.
- Strategic Tools: Leveraged Megaport's Software Defined Network (SDN) for flexible, on-demand connectivity.
- Performance Gains: Example: News UK saw a 40x performance improvement after migrating data operations to Google Cloud's BigQuery.
Challenges Faced:
- Connectivity issues with AWS.
- High costs and rigid contracts from traditional network providers.
- Operational delays due to manual processes.
Solutions Implemented:
- Megaport's SDN for scalable, pay-as-you-go connectivity.
- Phased migration approach to minimize risks.
- Partnered with specialized firms for expertise.
Results:
- Significant cost reductions and improved system performance.
- Enhanced scalability and flexibility for digital media operations.
- Faster data processing and better resource allocation.
Lessons for Media Companies:
- Align leadership to ensure smooth execution.
- Use phased implementation to refine strategies.
- Choose partners with expertise in cloud and media operations.
- Budget for unexpected costs like data transfer fees.
- Test systems under full production loads to identify bottlenecks.
News Corp's experience offers a roadmap for media companies aiming to modernize their infrastructure while managing costs and operational complexities.
News Corp Discusses Plans for Migrating Data Centers to AWS
News Corp's Cloud Migration Strategy
News Corp took a bold step in revamping its infrastructure, opting for a complete overhaul rather than a basic lift-and-shift approach. By focusing on architectural modernization, strategic partnerships, and phased implementation, the company built a solid foundation to support its varied media brands across multiple regions.
Transitioning to Multi-VPC Architecture
One of the key advancements in News Corp's strategy was adopting a multi-VPC Hub/Spoke architecture. Initially, their cloud setup revolved around a single Virtual Private Cloud (VPC), which eventually limited scalability. The shift to a multi-VPC model transformed how cloud resources were structured and managed. Each business unit gained its own VPC, while centralized connectivity through a hub ensured secure access to shared resources. This setup allowed applications and services to scale independently, meeting the unique demands of different business units.
Leveraging Megaport's Software Defined Network
A cornerstone of News Corp's strategy was its collaboration with Megaport to deploy a Software Defined Network (SDN) solution. Traditional providers often required high upfront investments and rigid contracts, which conflicted with the flexibility needed for modern cloud operations. Megaport's SDN, on the other hand, provided on-demand connectivity that adjusted to actual usage, aligning perfectly with AWS's pay-as-you-go model. This approach was especially critical for News Corp Australia, which successfully migrated its JD Edwards ERP system to AWS. Notably, this was only the second global instance - and the first in the Asia-Pacific region - of JD Edwards being moved to the cloud.
Key Factors Behind the Success
Several factors contributed to the success of News Corp's migration efforts. Strong leadership at the executive level ensured alignment across teams, helping everyone understand the benefits and their responsibilities during the transition. Partner selection was equally important; News Corp worked with specialized firms like Myriad IT and SoftServe to bring in the right expertise for specific projects. The phased implementation approach also played a big role, allowing the company to refine its strategy along the way. For instance, when News UK migrated its data operations to Google Cloud's BigQuery, the results were striking: a 40x improvement in performance, a reduction in dataset ingestion time from three months to just three weeks, and the ability to handle three times the data demands with the same team size.
Cloud Migration Challenges and Solutions
As part of its ambitious migration strategy, News Corp faced a series of technical and operational hurdles that could have jeopardized its transformation efforts. These challenges were significant, but with strategic partnerships and creative problem-solving, they turned potential setbacks into opportunities for progress.
Technical and Operational Problems
One of the biggest obstacles News Corp encountered was unreliable AWS connectivity. Relying on a single Direct Connect paired with an internet VPN created a critical single point of failure that put their operations at risk. Additionally, the geographical mismatch between their primary data center and the AWS Direct Connect edge required them to involve a Network Service Provider to establish redundant connectivity.
Traditional network providers added another layer of complexity. Their high upfront costs and rigid bandwidth packages clashed with AWS's flexible, pay-as-you-go model. This mismatch made it difficult for News Corp to align their network expenses with actual usage, limiting their ability to adapt to changing demands.
Operational challenges further complicated the migration. High-latency provisioning and manual processes across multiple physical instances increased complexity and slowed down return on investment (ROI). To address these issues, News Corp needed a solution that could simplify operations and enhance flexibility.
How Megaport's SDN Solved Key Issues
Megaport's Software Defined Network (SDN) provided the tools News Corp needed to overcome their connectivity challenges and streamline their migration.
One standout feature was the self-provisioning Portal. Through this platform, News Corp established Virtual Cross Connects (VXCs) - individual 802.1q VLANs - to connect over 40 Virtual Private Clouds (VPCs) using a single Direct Connect. This eliminated the need for multiple physical connections while ensuring both scalability and redundancy.
Megaport's pay-as-you-need billing model was another game-changer. Unlike traditional providers, Megaport allowed News Corp to adjust bandwidth on demand, scaling usage up or down based on actual data requirements. This flexibility not only reduced capital investments but also gave them greater control over network costs.
The scalability of Megaport's solution proved invaluable. News Corp expanded to more than 90 primary and redundant VXC services across their AWS workloads, showcasing the platform's ability to grow alongside their needs. The inclusion of monitoring and management tools for each VXC added an extra layer of control, enabling News Corp to fine-tune network performance.
Beyond scalability, Megaport's SDN also simplified connectivity for third-party services like MongoDB Atlas hosted within AWS. By enabling rapid provisioning of segmented VPC workloads, they avoided delays that could have disrupted operations.
"We have always had a progressive stance towards using public cloud for our production workloads. As our needs evolve, we believe that Megaport's on-demand and API-driven connectivity services are tightly aligned to our own strategy to be a dynamic content provider in the emerging API economy." - Nicholas Tan, Chief Architect – Infrastructure, Cloud, and Cyber, News Corp Australia
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Technology Tools and Implementation
Megaport's Software-Defined Network (SDN) played a key role in News Corp's move to the cloud by providing fast, on-demand connections between its Sydney data center and AWS Asia-Pacific (Sydney). This setup streamlined integration with AWS, offering a flexible and scalable foundation tailored to the demands of digital media operations. These technological solutions laid the groundwork for future deployment and scaling efforts.
Migration Results and Business Impact
After implementing a well-planned migration strategy and tackling key challenges, News Corp is now reaping tangible benefits. Their shift to the cloud has boosted operational efficiency, cut costs, and made their digital media operations more flexible.
Cost Savings and Performance Gains
By moving away from dedicated hardware and traditional data centers, News Corp significantly reduced expenses while simplifying workflows. This shift has also led to better system performance and improved reliability.
Improvements in Digital Media Operations
The new cloud infrastructure has elevated News Corp's digital media capabilities. It has optimized content management, allowed for quick scaling during traffic spikes, and improved team collaboration, making operations more responsive. These advancements highlight the success of their cloud migration and the soundness of their strategic choices.
Key Lessons and Recommendations
News Corp's migration sheds light on important factors that can determine success or failure in large-scale projects like this.
Main Lessons from News Corp's Migration
One of the standout takeaways is the importance of strong executive alignment. When leadership is unified, it reduces delays and ensures resources are allocated efficiently.
Another critical factor was the use of a phased implementation. By breaking the migration into smaller waves, teams had the chance to learn from each phase. This approach helped minimize downtime and made transitions smoother.
Choosing the right specialized network partner also proved essential. A partner with expertise in multi-cloud connectivity ensured the migration was both flexible and efficient.
Lastly, testing at scale was a game changer. Small-scale testing often missed performance bottlenecks that only surfaced under full production loads. By simulating real-world traffic patterns and peak usage scenarios, News Corp was able to address potential issues before they became major problems.
These lessons provide valuable guidance for B2B media networks planning similar transformations.
Advice for B2B Media Networks
Building on News Corp's experience, media companies should carefully consider their unique challenges, especially those related to content delivery and fluctuating traffic. A well-thought-out plan should address content distribution across multiple regions while also meeting essential compute and storage needs.
Given the demands of video streaming, real-time publishing, and large-scale content delivery, it's crucial to partner with companies that have proven expertise in media operations.
Budgeting for unexpected costs is another key recommendation. Expenses like additional data transfer fees and premium support can add up quickly. Media companies with extensive content libraries should also keep a close eye on data egress costs to avoid budget overruns.
For organizations needing extra support, The B2B Ecosystem offers consulting services and AI tools tailored to help with migration planning and execution. These resources can help media networks navigate common challenges and create strategies that accommodate the heavy demands of content-rich workflows.
Finally, it's important to set realistic timelines. News Corp faced delays due to the complexities of keeping content available during the migration process. Media companies should account for potential setbacks, plan for extended timelines, and maintain parallel support for both old and new systems to ensure a seamless transition.
FAQs
What key advantages did News Corp gain by using a multi-VPC Hub-and-Spoke architecture during their cloud migration?
News Corp made notable progress by adopting a multi-VPC Hub-and-Spoke architecture during their shift to the cloud. This setup strengthened the stability of their infrastructure, providing dependable and fast connections essential for hosting critical content. It also boosted their network’s capacity to grow and adapt, simplifying resource management and ensuring smooth support for key business applications.
On top of that, this architecture simplified the migration process. By cutting down on complexity, it allowed News Corp to respond more effectively to changing business demands while keeping performance and reliability at a high standard.
How did Megaport’s Software Defined Network (SDN) help News Corp overcome connectivity challenges during their AWS cloud migration?
Megaport's SDN delivered News Corp a fast, dependable, and low-latency network solution, simplifying their cloud connectivity. By moving away from less reliable options like single Direct Connect links and internet VPNs, they ensured consistent and efficient access to their data.
This upgrade helped News Corp tackle connectivity challenges, enhance operational efficiency, and achieve their cloud migration objectives with improved speed and reliability.
What can media companies learn from News Corp's step-by-step cloud migration strategy?
Media companies can learn a lot from how News Corp tackled their cloud migration. By splitting the process into smaller, manageable steps, they reduced risks and made transitions more seamless. Focusing on critical applications early and adopting an agile approach allowed them to adjust to challenges quickly and fine-tune their strategy along the way.
This step-by-step method also encourages ongoing learning and smarter use of resources, making sure the migration stays aligned with business objectives while keeping disruptions to a minimum.
