A hyperscaler is a provider of cloud computing services that offers massive IT resources that can be scaled almost infinitely. This scalability is achieved through thousands of networked servers and storage systems. Leading companies in this field include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and IBM.
Hyperscaler: Characteristics and Function
Hyperscaling enables horizontal scaling, where resources are expanded by adding additional systems. This differs from vertical scaling, where existing systems are upgraded. In addition to classic cloud services such as Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), hyperscalers also offer many additional tools and services.
Advantages that hyperscalers offer:
- Scalability: Resources can be flexibly expanded as needed.
- Cost efficiency: No investment in own hardware necessary.
- Reliability: High redundancy and fault tolerance.
- Flexibility: Possibility to use multiple providers in parallel and minimize dependencies.
Disadvantages:
- Data sovereignty is not guaranteed depending on data location/provider.
- Providers’ pricing models often offer little flexibility and transparency.
- User interface usually differs from provider to provider.
Market Dominance
The leading hyperscalers dominate the market through their ability to efficiently manage large amounts of data and offer extensive computing power to a multitude of customers simultaneously. In Asia, Alibaba Cloud has also established itself as a significant and dominant provider.
