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The shift to the cloud has accelerated over the past three years as organizations respond to new business and social dynamics. Gartner predicts that enterprise IT spending on public cloud computing will exceed 51% by 2025. With such a large percentage of IT spend going to cloud it is important to explore cloud solutions beyond the big three hyper scalers who have dominated the cloud computing market for many years. A huge number of companies can benefit from considering alternative cloud providers that better fit their specific needs. Now with the simplicity, ease of use, and cost-effectiveness of alternative clouds, many companies are switching cloud service providers. Below we examine this shift away from hyper scalers and why companies want more options.
Why Hyperscalers Have Been the Go-to for Cloud Services
Hyperscalers like AWS and Azure offer robust cloud storage solutions that are scalable and integrate well with their other services. This has made them the go-to choice for businesses of all sizes looking to leverage the benefits of cloud storage. With a massive number of data centers spread out across various regions and geographies worldwide, public cloud storage solutions are highly reliable.
Public Clouds integrates with other services such as databases, analytics, and machine learning. Google Cloud Platform offers the same services as AWS and Azure, including IaaS, PaaS, and SaaS, making it a strong alternative for businesses seeking comparable cloud offerings. This allows businesses to quickly build and deploy applications that can access and analyze data stored in the cloud.
The Reason for the Move to Alternative Cloud Providers
There are many use cases for which hyperscalers are beneficial and needed. However, there is a growing need for alternative cloud or at least a combination of hyperscale and alternative cloud. Let’s explore three key reasons companies are adopting hybrid cloud.
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Flexible consumption (no pre-determined instance sizes)
A flexible consumption model (FCM) is an approach to buying and paying for technology where spending aligns with actual usage. The intent is to allow businesses to dynamically increase or reduce their IT resources based on their changing business needs as needed.
Virtual machines are a key component of flexible cloud environments, providing scalable and customizable compute resources that can be adjusted to fit workload requirements. Relying on a single compute type can limit flexibility and efficiency, so having access to multiple compute options is important for optimizing performance and cost.
AWS and Azure take this approach by offering VMS (Virtual managed services) in per-packaged instances. In theory, this should be a more affordable means to buy storage. However, in a study of over 1,000 businesses, 82 percent believe large public cloud providers like Amazon AWS, Google Cloud, and Microsoft Azure overcharge their customers. Resulting in difficulty with accurately predicting and controlling monthly IT budgets.
A key benefit of alternative cloud providers is that they can offer small and medium-sized businesses additional services not always provided by the public cloud. Benefits include cost savings, expertise, scalability, access to advanced technology, increased focus on core business, proactive monitoring and maintenance, and improved security.
Alternative providers may also offer software as a service (SaaS) solutions, giving organizations access to ready-to-use applications over the cloud. Software plays a fundamental role in managed cloud services, integrating with infrastructure to deliver comprehensive solutions.
Many SMBs do not have the internal resources and budget to configure and manage public cloud solutions and complimentary services such as Disaster Recovery as a ServiceDRaaS. As more and more companies move data to the cloud, they find the setup in hyperscale environments more difficult than expected and incredibly expensive. In addition, support services through AWS and Azure are often cost-prohibitive, leaving IT departments to turn to online forums.
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Migration and Set-up Services
A managed service provider, who offers full service, can set up the cloud in a hyperscale environment while partnering with the company in their cloud journey. This includes migrating from on-premises storage or an existing cloud or other environment.
Hyperscalers may offer these services, but they are typically expensive and may require a third party to help with migration and setup. In addition, the risk of misconfigurations or failed migrations can lead to more headaches, unexpected bills, and over-budget projects. Relying on a single cloud provider can also introduce vendor lock-in risks, making it harder to switch providers or optimize costs. Each organization has unique migration needs, and businesses operating in regulated industries face additional challenges related to compliance and data privacy. New businesses may benefit from the scalability and flexibility of alternative providers as they grow. Platform as a service (PaaS) offerings can further simplify migration and deployment by providing ready-to-use environments for application development. Migrating from on-premises environments often involves moving hardware, servers, and server infrastructure, especially for companies that own hardware and manage their own servers. Cloud migration enables access to resources and services over the internet, supporting remote work and global operations. Alibaba Cloud offers a wide variety of services—including IaaS, PaaS, DBaaS, and SaaS—that support migration and deployment for diverse industry needs.
Security and Compliance: A Critical Consideration
When it comes to cloud computing, security and compliance are among the most critical factors businesses must evaluate before choosing a cloud provider. While hyperscale cloud providers such as Google Cloud, Microsoft Azure, and Amazon Web Services (AWS) have built strong reputations for robust security features and global cloud infrastructure services, not every business will find their offerings a perfect fit for their unique regulatory and operational needs.
For many organizations, especially those operating in highly regulated industries like finance, healthcare, or government, meeting strict regulatory compliance standards is non-negotiable. Public cloud solutions from providers like IBM Cloud and Alibaba Cloud offer a wide range of compliance certifications, data encryption, and access controls. However, some businesses require even more specialized services or need to ensure that their data remains within specific geographic boundaries—a concept known as data sovereignty. This is where hybrid cloud or multi-cloud strategies become an attractive choice, allowing companies to leverage the strengths of multiple cloud service providers while maintaining control over sensitive data.
Data sovereignty is particularly important for businesses with operations in various regions, as laws such as the General Data Protection Regulation (GDPR) in the European Union mandate strict controls over where and how data is stored and processed. Leading cloud providers like Microsoft Azure and Google Cloud Platform address this by offering data centers in numerous locations, giving businesses the flexibility to select where their data resides to meet compliance requirements.
Cost effectiveness is another key consideration. While hyperscale cloud providers often advertise competitive pricing, many organizations discover hidden fees or unexpected costs that can make these solutions cost prohibitive over time. Evaluating the total cost of ownership—including support services, data transfer fees, and contract terms—is essential to ensure the chosen cloud solution delivers the best value for your business.
Scalability and flexibility are also vital. Cloud infrastructure services from AWS and Azure provide the ability to quickly scale resources up or down, which is ideal for businesses with fluctuating workloads. However, for companies with predictable or stable workloads, a bare metal or dedicated hosting solution may offer better performance and cost savings.
Expertise and support services should not be overlooked. The right cloud provider will offer not only advanced security features but also responsive support and guidance to help businesses navigate complex compliance landscapes and technical challenges.
When evaluating cloud providers for security and compliance, consider the following factors:
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Regulatory compliance: Confirm that the cloud provider meets all relevant regulatory requirements for your industry, such as GDPR, HIPAA, or PCI-DSS.
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Data sovereignty: Ensure the provider has data centers in the regions necessary to comply with data sovereignty laws.
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Security features: Assess the provider’s security offerings, including data encryption, access controls, and compliance certifications.
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Cost effectiveness: Look beyond headline pricing to understand the total cost of ownership, including any hidden fees or unexpected expenses.
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Scalability and flexibility: Choose a cloud solution that can adapt to your business’s changing needs, whether through public cloud, hybrid cloud, or dedicated resources.
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Expertise and support: Evaluate the provider’s experience, support services, and ability to assist with security and compliance challenges.
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Contracts and SLAs: Carefully review contracts and service level agreements to ensure they align with your business requirements and risk tolerance.
By thoroughly assessing these factors and considering a range of cloud service providers, businesses can select a cloud solution that not only meets their security and compliance needs but also supports their long-term cloud journey and growth objectives.
What to Consider When Selecting a Credible Alternative to a Hyperscaler
When selecting a credible provider for cloud storage, several factors must be considered. First and foremost, you must ensure that the provider has a strong tenure and reputation with security-certified engineering talent on staff. Next, choose a provider that offers endpoint security to protect your data from unauthorized access, hacking, and data breaches. This includes encryption, access controls, and multi-factor authentication.
Another important consideration is the provider’s reliability and availability. You want to choose a provider that has a track record of high uptime and minimal downtime, so your data is always accessible when you need it. Look for a provider who offers 24/7/365 support with a ticker response time in minutes rather than hours. It’s also essential to consider the provider’s scalability and flexibility to meet your changing storage needs over time.
Cost is also an essential factor to consider. While cloud storage can be more cost-effective than traditional on-premises storage, prices can vary widely between providers. You should compare pricing structures and features to ensure you get the best value for your budget. Remember to check for add-ons and hidden fees. Choose a provider with no-surprise monthly billing so that you can better manage your IT budget.
Lastly, you should consider the provider’s reputation and customer support. Look for reviews and feedback from other customers to gauge their satisfaction with the provider’s service and support. A provider with a strong reputation for customer support and deep vendor partnerships can be invaluable when you need help with technical issues or have questions about your storage needs.
By carefully considering these factors, you can choose a credible provider for cloud storage that meets your specific needs and gives you peace of mind knowing that your data is secure and accessible.