Keeping Cloud Hyperscalers in Check
Hyperscale computing is increasingly used in cloud and big data infrastructure systems at companies like Google, Amazon, and Microsoft. These companies can now offer their customers almost limited computing power.
But they also present risks. Some developers don’t trust hyperscalers because of their intense focus on shareholders, rather than customers. Many companies are also concerned about pricing transparency and the potential to overspend on computing resources.
Here, we’ll explore what hyperscale computing means and how companies can keep their hyperscale partners in check.
What is a Cloud Hyperscaler?
A cloud hyperscaler is an organization that hosts and manages multiple cloud services such as compute, storage, networking, and other associated services. Cloud hyperscalers offer a range of features to their customers including scalability, high availability, security, global presence, and cost efficiency.
Hyperscale providers typically manage large computing infrastructures that provide resources to customers who need to run applications on a global scale. The largest and most commonly used hyperscalers are AWS, Azure, and Google Cloud Platform.
Why Hyperscalers Are So Attractive
Companies benefit from cloud hyperscalers because they can offer cost and scalability advantages that other providers can’t, mostly because of their size. Organizations can access the resources they need without having to invest heavily in infrastructure, and they can access additional resources through turnkey solutions as they scale.
Additionally, hyperscalers provide access to a wide range of services and features which allow organizations to build complex applications quickly and efficiently. Cloud hyperscalers can even help businesses improve their security measures by offering built-in safeguards such as data encryption, identity management, and firewalls.
Lastly, hyperscalers can help businesses become more agile by providing fast deployment options and allowing them to easily scale up or down as needed based on demand.
These environments are widely used by large enterprise organizations because they need enough cloud resources to deploy on a global scale. However, SMBs and other organizations are increasingly turning to hyperscalers due to their industry presence, as well as their promise to help those businesses scale their resources alongside business growth.
Challenges Associated with Cloud Hyperscalers
Companies have a few key challenges when working with cloud hyperscalers. These include cost, complexity, scalability challenges, vendor lock-in, and lack of control over the environment.
Cost is often one of the biggest issues since many organizations end up paying more than they initially expected due to the complexities involved in hosting their applications on public clouds. Additionally, there are scalability challenges that can arise if an organization decides to scale up or down its usage but fails to plan for such changes.
Vendor lock-in can also be an issue if businesses become too reliant on a particular cloud provider, making it difficult for them to switch providers without incurring significant costs. Organizations may have limited control over their environment as certain features and services may not be available depending on their chosen cloud hyperscaler.
Keeping Cloud Contracts in Check Depends on Negotiation
Procurement needs clear information about compliance, usage predictions, and associated costs before they begin negotiating with cloud hyperscalers. Without visibility into this data, the company risks overpaying for services or running into security compliance issues that could present added costs.
Many companies could benefit by partnering with cloud license management consultants and other service providers to help them manage their software assets. While these experts come at a cost, they could significantly reduce the risk for the company and can deliver an overall cost-benefit thanks to savings in cloud services.
Perhaps most importantly, negotiators must obtain clear documentation about what potential cost escalations could occur as the company scales its cloud services. The company should take the time to compare offerings to ensure they're receiving competitive rates, and it should consider what components are included in the contract to ensure each cost is associated with a use that benefits the business.
Don’t Miss ProcureCon IT Sourcing
To learn more about managing relationships with cloud hyperscalers, don’t miss the ProcureCon IT Sourcing event happening from June 26th-27th at the Marriott Copley Place in Boston.