Insights

What are Hyperscalers?

3 min read PubNub Labs Team on Sep 15, 2023
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What are Hyperscalers?

Hyperscalers are companies that offer cloud & infrastructure services on a massive scale, enabling customers to deploy and manage applications and data across a global network of data centers. These companies provide the foundational environment for cloud computing, including computing power, storage, networking, and various cloud services, to support the needs of businesses of all sizes.

Key characteristics of hyper scalers include:

  • Massive Scale: Hyperscalers operate vast data centers globally, often numbering in the hundreds of thousands of servers.

  • Global Reach: They offer services across multiple regions and availability zones, ensuring high availability and low latency for customers worldwide.

  • Elasticity: Hyperscalers provide resources on demand, allowing customers to scale up or down quickly based on their needs.

  • Automation: They heavily invest in automation for deployment, Infrastructure as Code (IaC), security management and load balancing enabling efficient operations at scale.

  • Comprehensive Service Offerings: Beyond just infrastructure, hyperscalers offer a wide range of services, including machine learning, analytics, databases, security, and more.

Examples of hyperscalers

Popular hyperscalers are Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), Alibaba Cloud, IBM Cloud, Oracle Cloud, Tencent Cloud, Huawei Cloud, OVHcloud, DigitalOcean, SAP Cloud, Salesforce, Rackspace Technology, NTT Communications, CenturyLink (now Lumen Technologies), Verizon Cloud, Equinix Metal, Linode (now part of Akamai), Cisco Cloud.

How Hyperscalers Work

  • Data Centers and Infrastructure: Global Network: Hyperscalers build and maintain a network of data centers across multiple regions and continents. These data centers house thousands of servers and networking equipment. High Availability: They design infrastructure for redundancy and fault tolerance to ensure high availability and reliability. This includes redundant power supplies, cooling systems, and network connections.

  • Automation and Orchestration: Automated Scaling: Hyperscalers use automation to scale resources based on demand dynamically. This includes auto-scaling compute instances, storage, and network resources. Orchestration Tools: They employ orchestration tools to manage and coordinate resources across distributed data centers, ensuring efficient and consistent operations.

  • Services and APIs: Service Offering: Hyperscalers provide a wide range of cloud services, including computing, storage, databases, networking, machine learning, and more. APIs: They offer APIs that allow users to interact programmatically with their services, enabling automated provisioning, management, and monitoring of cloud resources.

  • Security and Compliance: Automated Security: Hyperscalers implement automated security measures to protect against threats, including continuous monitoring, vulnerability scanning, and automated patching. Compliance: They ensure compliance with various regulatory standards and industry certifications through rigorous security practices and regular audits.

  • Data Management: Global Distribution: Data is often replicated and distributed across multiple data centers to enhance performance and redundancy. Content Delivery Networks (CDNs): They use CDNs to cache and deliver content closer to users, reducing latency and improving user experience.

Time to Reach Scale

Achieving a significant scale for a hyperscaler involves extensive planning, investment, and execution. The timeline can vary widely based on several factors:

Initial Setup:

Infrastructure Development: Building the first data centers and establishing the core infrastructure can take several years. This includes physical construction, hardware installation, and network setup. Service Development: Developing and launching the initial suite of cloud services may take additional time, as it involves creating software, integrating with infrastructure, and testing.

Scaling Up:

Growth Phase: Once the foundational infrastructure is in place, hyperscalers can start scaling rapidly. This involves expanding data centers, adding more servers, and increasing capacity to handle growing customer demands. Timeframe: Scaling to a significant size can take several years, depending on the company's resources, market demand, and competitive landscape. For example, a hyperscaler might go from a small regional player to a global leader in 5 to 10 years.

Ongoing Expansion: 

Theoretical Continuous Growth: Even after reaching a significant scale, hyperscalers expand their infrastructure and services. This ongoing growth is driven by technological advancements, increasing customer needs, and market opportunities. Incremental Scaling: Expansion is typically incremental, with hyperscalers adding new regions, data centers, and services in response to demand