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What Are Hyperscalers?

Revolutionize your approach to scalability, reliability, and cost-effectiveness in a fast-moving digital landscape.

Hyperscalers – an introduction

In the course of the global pandemic, the world witnessed an unprecedented shift in the way we work, connect and conduct business. The acceleration of cloud trends became the linchpin that allowed us to navigate the challenges posed by the pandemic. As one industry expert aptly put it, “Without cloud applications, tools, and services, we wouldn't have been able to send millions of employees to the home office, keep global supply chains under control, and shift the business models of entire industries in weeks.1

This pivotal moment underscored the indispensability of cloud computing, marking a paradigm shift in how we approach technology. The increasing digitalization of our world has resulted in an unprecedented influx of data, necessitating advanced solutions for storage, management and utilization. In this era of information abundance, hyperscalers have underlined their importance. Modern technologies, propelled by the need for integration rather than mere connectivity, call for the seamless merging of sensors, devices and machines. As industries embrace these innovations to boost efficiency and productivity, the need for a robust, scalable and interconnected infrastructure has become paramount. This is precisely where hyperscalers step into the spotlight, offering a comprehensive solution to the intricate demands of our interconnected, data-driven world.

In this exploration of hyperscale computing, we will delve into the core of this transformative force, understanding its significance in handling big data, powering global networks and catalyzing the evolution of industries. As we journey through the following chapters, we will highlight the role of hyperscalers as architects of the digital future.

1. What is hyperscale computing?

The term "hyperscale" is used to describe scalable cloud computing systems. Here, many servers are connected in a network and used as common computing basis. Depending on requirements, the computing capacity can be increased or decreased. If companies have a big sales day coming up, the performance requirements can be increased easily. For this reason, servers are networked horizontally: to make the IT system more powerful, additional server capacity is simply added. This is internationally called scale-out. In contrast, scale-up describes vertical scalability. Here, local systems are expanded using existing hardware. To summarize, we can say that hyperscale refers to the capability of an IT architecture or system to scale and rapidly to meet the growing demand for resources, often associated with cloud computing.

2. What are hyperscalers?

Hyperscalers are providers and operators of the scalable cloud computing, network and data storage services.2 Most of these are found in the public cloud. In the last few years, the number of large hyperscalers has decreased.

These companies are wielding massive infrastructure and data processing capabilities. They operate on a global scale, providing cloud services to individuals, businesses and organizations. Their infrastructures are designed to handle immense workloads efficiently, making them the go-to choice for businesses of all sizes.

3. Who are the biggest hyperscalers?

The largest hyperscalers currently have a 65% market share in the public cloud space.3 The largest hyperscalers currently are.

  • Amazon Web Services (AWS): The era of hyperscaling began with AWS. Created in 2006, AWS was the first hyperscaler. It offers many different services such as data processing, storage, big data, artificial intelligence (AI) and the Internet of Things (IoT) and currently has a market share of almost 32% 3.
  • Microsoft Azure: In second place with over 23% 3 market share is Microsoft Azure. This hyperscaler launched in 2010 and offers a wide range of services similar to AWS. Many German companies use Azure. Indeed, operations have been possible from a German data center since 2016 with Telekom subsidiary T-Systems as the administrator.
  • Google Cloud Platform: The Google Cloud Platform, launched in 2010, has a market share of 9% 6. Google strives for openness towards other hyperscalers so that a 100% partner model is possible. 4

When looking for the right hyperscaler for their needs, it is important to consider the alignment of companies’ usage patterns with the hyperscaler’s pricing structure. Other parameters that need to be compared are geographical aspects in terms of regulatory and latency requirements, as well as SLA options such as response times and support channels which ensure assistance when facing issues.

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4. What are hyperscaler data centers?

At the heart of hyperscale computing are data centers of unparalleled size and efficiency. Hyperscale data centers are immense facilities equipped with thousands of servers and cutting-edge technology to process and store vast amounts of data. They are strategically distributed around the globe to ensure low-latency access and high availability of services.

The three largest hyperscalers are significantly driving the expansion of hyperscale data centers. These data centers provide the technical infrastructure, space, power and cooling for processors to enable hyperscale in the first place. Essential is the flexible scalability, through which a hyperscale differs from conventional data centers. But hyperscale data centers must also be able to deliver fast response times, high security and cost efficiency. In most cases, hyperscaler data centers are operated by the hyperscalers themselves; 35% of the data centers are operated in the USA.5

5. What are the hyperscaler services in the cloud?

Cloud services can be divided into three main categories:

Infrastructure as a Service (IaaS) is understood to be the virtualized resources of computer hardware such as processors, memory, storage space or networks. In the public cloud, users can configure their infrastructure individually according to their requirements and rent it for use.

Next level: Platform as a Service (PaaS) grants the cloud user access to runtime and programming environments with computing and data capacities that can also be customized. PaaS environments give the users the option of developing or operating various applications under their own responsibility. If such an environment is used for integration use cases, it is called iPaaS. It combines data and application integration, enabling companies to host their full integration in the cloud. Typically, PaaS offers are provided by third parties that base their platforms or services on a hyperscaler’s infrastructure.

Software as a Service (SaaS), provides direct access to applications or to a specific software. The provider operates the data center and the software that is available to customers for use with defined SLAs. In addition, accompanying services for the actual software are offered. As with PaaS, it is also common for SaaS offerings to use the infrastructure of a hyperscaler as the basis for a specific service.

Besides hyperscalers, there are also other vendors that provide cloud services from their own data centers such as SEEBURGER Cloud Services, which empower businesses to scale effortlessly, innovate rapidly and optimize their operations through a pay-as-you-go model.

6. Why use hyperscalers at all?

As digitalization permeates every industry and work area, the need for a global computing and server infrastructure capable of keeping pace with this exponential data growth becomes paramount. It is here that hyperscale solutions come into play, because they are the backbone of economic data management and stand as a testament to the transformative power of scalable and adaptable infrastructure. These environments, offered by hyperscalers, not only address the challenges posed by the accumulation and fusion of data but also ensure economic efficiency, high availability, and the scalability required to navigate the ever-expanding digital landscape.

So the decision to migrate to hyperscalers is driven by several factors, including scalability, cost-effectiveness and access to cutting-edge technologies. Businesses can leverage the vast resources of hyperscalers to expand their operations without the burden of maintaining extensive on-premises infrastructure and therefore unlock the full potential of their data in the age of relentless digitalization.

7. What are the advantages of hyperscalers?

The advantages of hyperscalers go beyond scalability. Enhanced security, global reach and the ability to tap into advanced technologies like AI and machine learning (ML) are among the many benefits. The agility and flexibility provided by hyperscalers empower businesses to stay competitive in a rapidly changing digital landscape.

Hyperscalers are characterized by their many advantages, including:

Advanced Security Measures

Hyperscalers prioritize cybersecurity, offering a suite of cutting-edge solutions to safeguard digital assets. With constant threat monitoring, sophisticated threat detection mechanisms, and compliance adherence, hyperscalers provide a secure environment for businesses. The expertise embedded in their security protocols, coupled with robust physical security in data centers, fortifies hyperscalers as reliable guardians against the evolving landscape of cyber threats. As businesses navigate the digital realm, the comprehensive security infrastructure offered by hyperscalers becomes an indispensable asset, ensuring data integrity, confidentiality, and the overall resilience of digital operations.

High reliability through redundant solutions

Hyperscalers guarantee high reliability by implementing redundant solutions. This redundancy minimizes the risk of service interruptions and enhances the overall stability of the cloud environment.

Low latency for critical applications

Vital for most IIoT applications or e.g. connected car providers, hyperscalers provide low latency, ensuring that data generated is processed with minimal delay. For example in a “Connected Car” scenario this is security relevant crucial to prevent unforeseen accidents. Additionally, applications such as AI, Virtual Reality (VR) and IIoT products thrive on fast and fluid data transfers for optimal functionality.

Pay-as-you-grow principle and usage-based payments

Stop spending money on data center operations & maintenance. The pay-as-you-grow principle ensures that businesses only pay for the resources they consume. This usage-based payment model enhances cost efficiency and aligns with the actual needs of the organization.

Flexible scaling and decentralized infrastructure

The flexible and decentralized infrastructure of hyperscalers allows for adaptable scaling at any time, both in terms of capacity and to meet specific workload requirements. This decentralized structure ensures agility and responsiveness to evolving business needs.

Use of multiple cloud services with no dependency

Leveraging multiple cloud services eliminates dependency on a single provider. This strategy ensures that businesses have the freedom to choose the most suitable services and avoid vendor lock-in, promoting flexibility and strategic autonomy.

Dynamic scaling for fast market adaptation

The ability to scale dynamically enables hyperscalers to provide a flexible, cost-effective solution for rapidly adapting to market demands based on varying data volumes. This ensures optimal utilization of resources and increased responsiveness to market dynamics, subsequently enhancing speed and agility. Achieving global reach within minutes becomes a natural consequence of this agile and scalable infrastructure.

Sustainable data centers

Hyperscaler data centers offer several advantages over traditional models, including high-density servers, portable applications, high-density cooling, renewable power sources, and round-the-clock support and using facilities built with low CO2 steel and cements. These features contribute to enhanced efficiency, reliability and sustainability.

In essence, hyperscalers not only revolutionize data processing and application deployment but also redefine how businesses approach scalability, reliability, and cost-effectiveness in the ever-evolving digital landscape.

8. What criteria should be considered when choosing a hyperscaler

When selecting a hyperscaler provider to meet the dynamic needs of your business, consider several criteria to ensure a seamless and efficient cloud experience. Each hyperscaler has its strengths and advantages for your needs, which makes it essential to align your choice with specific business needs and goals. Following are seven key factors to consider in your decision-making process:

Performance

Assess the hyperscaler's performance capabilities, including computing speed, network latency and overall responsiveness. A high-performance infrastructure is fundamental for meeting the demands of resource-intensive applications.

Reliability

Evaluate the stability, reliability and SLA commitments of the hyperscaler’s systems and services. Downtime or underperformance can have significant repercussions for your operations, making system stability a critical consideration.

Security

Security is paramount in the digital landscape. Ensure that the hyperscaler provides robust security measures, including encryption, access controls, and comprehensive threat detection, instilling confidence in the protection of your data and applications. Besides the technical security of the infrastructure itself also the software and its services need to have an appropriate level of security. This can be guaranteed by regular software maintenance including updates and security patches as well as by guidelines that developers are following in order to implement secure coding.

Compliance

Verify that the hyperscaler complies with industry regulations and standards. This is especially crucial for businesses operating in regulated sectors such as finance or healthcare, where adherence to compliance requirements is non-negotiable. In addition to industry-specific regulations, the operated software and services must also adhere to international standards for information security, such as ISO/IEC 27001. This standard ensures the implementation of a comprehensive information security management system (ISMS) that covers risk assessment, security policies, and ongoing monitoring to safeguard against potential threats. Regular audits and assessments should be conducted to verify ongoing compliance, and the hyperscaler should provide transparent documentation and reports to demonstrate the fulfillment of these requirements. Overall, a commitment to compliance is integral to establishing trust with clients and stakeholders and mitigating potential legal and reputational risks.

Legal compliance

Businesses must always comply with all relevant data protection regulations. For businesses operating in the European Union, having data centers within EU jurisdiction ensures compliance with regional data protection regulations, such as the General Data Protection Regulation (GDPR). For example, a company that operates in the USA and processes data from EU citizens must comply with the GDPR. This consideration is vital for safeguarding sensitive data and maintaining legal compliance.

Contractual flexibility

Assess the flexibility of the contractual agreements offered by the hyperscaler. Consider whether the provider allows for scalability, adaptability to changing business needs, and transparent terms and conditions.

Technological openness

Evaluate the technological openness of the hyperscaler. This involves assessing the compatibility and interoperability of the platform with other technologies. With a growing demand towards multi-cloud strategies, choosing a hyperscaler that allows integration with other cloud providers is essential for building a versatile and resilient cloud architecture.

By carefully considering these criteria, businesses can make informed decisions when choosing a hyperscaler provider that aligns with their unique requirements and paves the way for a robust and future-proof cloud strategy.

9. SEEBURGER multi-cloud implementation

SEEBURGER's multi-cloud solution is based on a hybrid integration platform that combines all required protocols, formats and technologies in a single product. SEEBURGER iPaaS offers a number of core functions that help companies navigate complex integration landscapes, including:

Unified communication platform

SEEBURGER iPaaS acts as a centralized hub for streamlined communication, ensuring cohesive connectivity across various components and systems.

Conversion of all formats with one tool

The platform simplifies data integration by providing a single tool for converting diverse formats, facilitating interoperability and reducing the complexity of integration tasks.

Central monitoring

Offering enhanced visibility, the iPaaS service includes a central monitoring system that provides real-time insights into the performance and health of integrated processes.

Orchestration of processes and access rights

SEEBURGER iPaaS facilitates the orchestration of complex processes and ensures secure access rights, offering a comprehensive solution for managing workflows and permissions.

Preconfigured processes for recurring integration tasks

To expedite integration efforts, SEEBURGER provides preconfigured processes for common integration tasks, allowing businesses to swiftly implement solutions for their recurring needs.

Businesses can deploy the SEEBURGER BIS Platform as an iPaaS in any cloud to address the most intricate, business-critical and extensive integration requirements across various cloud providers.

10. Key aspects of SEEBURGER's multi-cloud strategy

With its ready-to-use connectors, the SEEBURGER iPaaS transforms hyperscaler integration into a configuration task rather than a research-intensive process, streamlining the connection with various cloud providers.

SEEBURGER’s public cloud strategy initially adopted a cloud-enabled approach, running the BIS Platform as a stateful virtual machine (VM) with a fixed number of instances, supporting at least one managed database in multiple clouds. Transitioning towards a cloud-based model, BIS evolved into running as a stateful container, supporting horizontal scaling, cloud functions and one or more managed databases across various clouds, ensuring adaptability and flexibility.

SEEBURGER's latest transformation involves a cloud-native approach, with the objective of BIS running as containers in Kubernetes clusters. This shift allows for identical operations across all clouds, offering greater efficiency and cost-effectiveness through horizontal scaling. A typical use case for horizontal scaling is the shopping day known as Black Friday, when retailers experience a surge in processing demands that require increased performance. After this peak, automatic downscaling takes place to ensure ongoing processing on a reduced number of instances.

SEEBURGER's commitment to staying at the forefront of cloud and hyperscaler integration technologies ensures that businesses can navigate the evolving digital landscape with confidence, scalability and unparalleled efficiency.

11. Hyperscaler FAQs

Do you work in a sector with its own specific needs?

Take a look at the SEEBURGER range of industry-specific solutions