What is a hyperscaler cloud?

Cloud computing has become an integral part of the modern digital landscape—it is estimated that by 2025, 85% of businesses will be cloud-first, meaning they utilize cloud computing as their primary infrastructure. Alongside this growth in cloud adoption has come an increase in the number of cloud providers businesses and developers today have to choose from. Despite this proliferation of cloud providers, so-called hyperscaler clouds, which boast a vast network of data centers and a wide range of services, still dominate the cloud market. Hyperscale providers include the “big three”— Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP)—which, combined, control an estimated 65% of the cloud market.

While many cloud users may default to using the well-known hyperscaler clouds, there are numerous other cloud providers that cater to specific markets, industries, and regions, collectively offering a diverse array of cloud services to meet the varied needs of users worldwide. Smaller, specialized cloud providers can excel in niche industries, offering tailored solutions and personalized support that hyperscalers might not prioritize due to their vast scale.

These providers may also offer more cost-effective options for businesses with smaller workloads, enabling budget-conscious organizations to achieve cloud cost optimization. In this post, we’ll explain what a hyperscaler cloud is, what the benefits and challenges of using a hyperscaler cloud are, and how to consider alternative clouds for your business.

What is a hyperscaler cloud?

A hyperscaler cloud is a cloud service provider which has a large network of data centers and a wide range of services that can support the needs of enterprise applications with massive user bases. Hyperscaler clouds dominate the cloud market, and are typically offered by technology companies such as Amazon, Google, and Microsoft, which have a number of other technology services in addition to their cloud infrastructure services. While both public and private cloud hyperscalers exist, in this article we’ll focus on public providers.

Public hyperscalers

Public hyperscalers are cloud computing platforms that are offered to the general public. They are owned and operated by large companies, such as Amazon, Microsoft, and Google. Here are six widely used public hyperscalers:

Amazon Web Services (AWS)

AWS, offered by Amazon, is the largest and most popular hyperscale cloud provider globally, with a market share of about 32% as of Q1 2023. AWS provides a comprehensive suite of cloud services, including computing power, storage options, databases, machine learning, analytics, and more. AWS serves millions of customers, ranging from startups to enterprises, and offers extensive global infrastructure.

Microsoft Azure

Microsoft Azure is a leading hyperscale cloud platform provided by Microsoft, which has about 23% market share. It offers a wide range of cloud services, including virtual machines, app services, AI and machine learning, IoT, and more. Azure integrates well with Microsoft’s existing enterprise software, making it a popular choice for businesses already invested in Microsoft technologies.

Google Cloud Platform (GCP)

GCP is Google’s hyperscale cloud offering that provides cloud computing, storage, big data, machine learning, and networking services. It controls about 10% of the cloud market.

Google’s expertise in data handling and AI/ML technologies makes GCP attractive to developers and businesses seeking advanced analytics and AI capabilities.

Alibaba Cloud

Alibaba Cloud, also known as Aliyun, is the cloud computing arm of Alibaba Group, a Chinese multinational conglomerate. As a public hyperscaler, Alibaba Cloud provides a comprehensive suite of cloud services to businesses and organizations worldwide. One of the main features of Alibaba Cloud is hybrid and edge computing, making it adaptable to various types of businesses.

IBM Cloud

IBM Cloud, offered by IBM, provides a suite of cloud services, including IaaS, PaaS, SaaS, and various AI and blockchain capabilities. It focuses on hybrid cloud solutions, catering to businesses that require integration between their on-premises infrastructure and the cloud.

Oracle Cloud Infrastructure (OCI)

Oracle Cloud infrastructure is Oracle’s hyperscale cloud platform that offers a range of services, including compute, storage, database, analytics, and enterprise applications. Oracle Cloud emphasizes its strength in database management systems and enterprise-grade applications.

Benefits and challenges of using hyperscaler cloud computing

Hyperscalers like AWS, Azure, and GCP offer unparalleled scalability, global reach, and an extensive array of services. These larger cloud providers are used by a wide range of businesses, from small businesses to large enterprises, but often cater to the needs of enterprises that will get the most out of their vast infrastructure network and range of product offerings.

Scalability

Hyperscaler clouds are designed to scale up or down to meet demand. This means that you can easily add or remove resources as needed. They offer virtually unlimited computing resources, enabling businesses to scale their applications and services rapidly to meet changing demands without worrying about hardware constraints.

Global availability

Hyperscaler clouds are designed to be highly available and have a large number of data centers located around the globe, which can mean more redundancy for your cloud application if it’s hosted across data centers. Hyperscalers provide low-latency access to users worldwide, improving performance and user experience.

Security

Hyperscaler clouds offer a high level of cloud security, often investing heavily in infrastructure redundancy, disaster recovery, and cybersecurity, helping to ensure high levels of service availability, and data protection. They use a variety of security measures to protect your data, including encryption, firewalls, and intrusion detection.

Challenges of using a hyperscaler computing cloud

While hyperscale clouds can meet the scalability needs of large businesses, their pricing complexity, potential vendor lock-in, data transfer costs, and regulatory considerations warrant careful evaluation.

When comparing hyperscalers to other cloud providers, assess factors such as service offerings, cloud scalability, pricing models, support, and cloud compliance. Hyperscalers offer global reach and diverse services but might lack personalization. Other providers can offer tailored solutions, better support, and cost optimization. Understanding these differences will help you make an informed decision and ensure a seamless cloud experience aligned with your specific requirements and strategic goals.

Complexity

Hyperscaler clouds can be complex to manage. They offer a wide range of features and services, which can be overwhelming for some users. Also, hyperscalers’ extensive customer base might lead to challenges in obtaining personalized support and prompt responses, particularly for smaller businesses.

Vendor lock-in

If you use a hyperscaler cloud, you may become locked into that vendor. This means that you may have difficulty moving your applications to another cloud provider if you decide to switch. Migrating data in and out of hyperscalers can result in additional expenses, which can be a concern for businesses with significant data transfer needs. Hyperscalers like AWS, Azure, and others may charge high egress fees for moving data out of their platforms, which can make it cost-prohibitive to switch to a different cloud provider. This lock-in can limit flexibility and make it challenging for organizations to take advantage of innovations and cost savings that may be available from other cloud service providers.

Unpredictable pricing

Unpredictable pricing by hyperscalers can pose challenges for businesses. Fluctuating costs and hidden fees make budgeting difficult, often leading to unexpected expenses. Companies must carefully monitor usage and negotiate contracts to mitigate financial uncertainties associated with hyperscale cloud services.

Hyperscalers vs. other cloud providers

While hyperscalers such as AWS, Microsoft Azure, and GCP are dominant players in the cloud market, their high prices and complex offerings can make them a poor fit for developers at startups and SMBs. Other cloud providers offer several benefits for those seeking a more tailored solution, lower costs, and tailored support offerings.

Specialized offerings

Other cloud providers often specialize in niche industries or tailored solutions, providing personalized support and deep expertise that hyperscalers may not prioritize due to their vast scale. Businesses with unique needs may benefit from this specialization and receive more attentive customer support.

Lower costs

Additionally, some companies might prefer smaller cloud providers due to cost considerations. For projects with modest workloads, hyperscalers’ extensive resources might be overkill and lead to unnecessary expenses. Local data residency and compliance requirements can also play a role, as some businesses may opt for smaller providers to adhere to specific regional data laws. For those looking to optimize their cloud spend, non-hyperscale cloud providers are often a more cost-effective option.

Avoid vendor lock-in

Choosing smaller cloud providers can offer flexibility in terms of vendor lock-in. Migrating between smaller providers or back to on-premises infrastructure may be less complex than transitioning between hyperscalers, allowing businesses to adapt more easily to changing needs.

Tailored support

Because other cloud providers have fewer customers, they often offer better support, especially for individuals and smaller businesses, which are not a priority for hyperscale providers. Smaller providers are typically more agile and can offer personalized assistance, quicker response times, and more flexible SLAs. This can be particularly beneficial for organizations that require hands-on guidance or have specialized needs that the large hyperscale providers may not be equipped to handle as effectively. For example, read how DigitalOcean’s support compares to support offered from AWS.

Transform your business with DigitalOcean’s powerful solutions

DigitalOcean is a cloud provider that is specifically designed for the needs of developers. It offers a simpler, more affordable platform that is easy to use and manage. DigitalOcean’s pricing is based on the amount of resources that you use, so you only pay for what you need, and has competitive bandwidth pricing. This can save you a significant amount of money, especially if you have fluctuating workloads or use a large amount of bandwidth.

Many organizations have migrated their cloud infrastructure away from hyperscale providers in favor of more specialized cloud platforms like DigitalOcean. One such company is Validin, a provider of efficient data indexing and processing solutions for enterprises. Validin transitioned its cloud environment from AWS to DigitalOcean, and the feedback from their experience is as follows:

In addition to its affordable pricing, DigitalOcean also offers several other products:

• Droplets: Deploy Linux virtual machines with customizable CPU, RAM, SSD storage, and data transfer options to suit diverse application needs.

• DigitalOcean Kubernetes (DOKS): Fully managed Kubernetes for efficient container orchestration, ensuring uptime, scalability, and seamless portability for your applications, including a free control plane.

• Serverless functions: Leverage serverless computing to execute code on-demand, enabling instant scalability without the hassle of managing servers.

• App Platform: Simplify app development, deployment, and scaling with DigitalOcean’s fully managed platform. Focus on building your applications without worrying about infrastructure, supported by seamless integration with your favorite repositories like GitHub.

• Cloudways: Opt for fully managed hosting that eliminates the need for midnight troubleshooting, helping to ensure your websites run smoothly around the clock.

• Spaces Object Storage: Store and retrieve large amounts of data effortlessly using S3-compatible tools without constraints from compute server limits.

• Volumes Block Storage: Expand your compute server’s storage capacity with scalable block storage volumes, adapting dynamically to your growing needs.

• Load Balancers: Help ensure application scalability and high availability with load balancers that efficiently distribute traffic across multiple resources.

• DDoS Protection: Safeguard your applications against network DDoS attacks with automated mitigation, helping to ensure continuous uptime and reliability.

• Paperspace: Tap into cloud GPUs for accelerated computing power, ideal for demanding AI/ML workloads that require high-performance capabilities.

Sign up for DigitalOcean today, or talk to our sales team if you need assistance migrating cloud workloads from a hyperscaler!