In late 2008, Netflix faced limitations with its single data center and chose to outsource capacity planning by migrating to Amazon Web Services (AWS). The migration involved moving various types of data, prioritizing non-sensitive data for cloud storage, with initial use of SimpleDB but later transitioning to Cassandra for its scalability and global capabilities. The overall migration timeline spanned multiple years, culminating in significant traffic being handled by AWS and Cassandra by early 2012.