Why Businesses Are leaving Hyperscalers for Alternative Cloud Providers

DartPoints Cloud Services

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. 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. 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. 

  • 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.  

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.

  • Managed Services

Alternative cloud providers can offer small and medium-sized businesses additional services only sometimes 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.

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 Service (DRaaS). 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.

  • 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.

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.

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