The Washington Post Company owned-Newsweek.com is joining the increasing number of news publishers experimenting with cloud computing. The weekly magazine is outsourcing its Web site hosting duties to Amazon, MediaWeek reported.
Having incurred US$29.3 million operating losses in 2009, the move of shifting its hosting operations to an external host is aimed at cutting loses in its magazine division, thereby hoping to save approximately $500,000 annually.
"It saves Newsweek money," Geoff Reiss, vice-president and general manager of Newsweek Digital, told MediaWeek. "Lots of people out there built their own infrastructure and are going to be tortured by this idea of sunk costs."
Newsweek.com also underwent a redesign this week, moving to a more simple, stripped-down look, while avoiding standard media site design features like large ad units and branding statements.
"A clean, vertical orientation on the page was one of the goals. What we've seen come out of social media and blogs [is] an organization that makes sense for how people are consuming media now...brand doesn't trump user experience," Reiss told MediaWeek.