Local vs Global, part 1: Is your business ready to move to a hyperscale cloud?

By Arthur Shih

In this blog series we take a 3 step look at understanding whether your business is ready to move to a hyperscale cloud.

We’ve all heard the mantra, cloud computing brings with it the promise of enabling organisations to consume IT infrastructure resources in an increasingly cheaper way, while providing unlimited capacity and scalability on a pay-as-you-use model.

However, this uncapped capacity and scalability depends on whether your business is ready to tap into a global cloud services model or alternatively opt for the use of a local cloud services model, both with differing benefits that may meet your business requirements.

With global cloud vendors such as Amazon and Microsoft being hosted out of regional centers such as Singapore and Sydney, latency and sovereignty issues have presented a barrier to adoption for New Zealand businesses. As a response to this, local cloud providers, such as Datacom have successfully offered their Datacom cloud services to the New Zealand market.

Step 1: Choosing a local or hyperscale cloud

As a general rule, the main differentiator offered by local clouds over hyperscale clouds, other than geographical location, data sovereignty and the ability to wrap custom managed services on top of the provided infrastructure are;

  • Local clouds due to their smaller scale and understanding of the local market, can offer much more granular and flexible arrangements to suit local businesses, but potentially with fewer features and at a higher cost than hyperscale clouds.
  • Hyperscale clouds on the other hand have access to more scale and therefore can often deploy more quickly and cheaply with more features, but less flexibility around guarantees and actual service management.

Added to this difference is the fact that local clouds are able to offer customers full end to end SLAs based on the outcome of the applications being hosted.

It is important to understand that the infrastructure purchased from global clouds is purely infrastructure only, with no guarantees around the specific application or service you are deploying on top of the infrastructure. They key is to understand how to design and deploy your applications in a way that takes into account the limitations and failure scenarios that may occur.

Hyperscale clouds on the other hand benefit from having larger scale and are able to offer scale up and scale down capabilities with lower price points than local clouds.

Larger scale also means they can offer more, though less flexible, functions and services at the infrastructure level, providing faster routes to standing up bare infrastructure.

Global vendors such as Amazon’s move to Australia with AWS, have resulted in customers starting to question whether or not their applications and systems can be hosted on Amazon and/or other global clouds. Datacom has been watching this space with interest, and to help customers understand their options, Datacom has:

  • Joined the Amazon Web Services Partner Network as a Consulting Partners. With over 30 trained technical staff in region, making us one of the most highly trained AWS partners in region.
  • Joined the Microsoft Cloud OS Rapid Deployment Programme for deployments on Microsoft Azure (Azure)

We have successfully helped multiple customers transform their businesses using both Amazon Web Services and Microsoft Azure, as well as using our own Datacom cloud services offering as well.

A summary of the key differences to consider when comparing local and hyperscale clouds:

We’ve looked at the key differentiators. In our next blog let’s take a look at the key benefits of local and global services models.

Arthur Shih is Datacom’s cloud solutions manager.

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