The Economic Benefits of Partnering with Hyperscalers

In recent years, the concept of hyperscalers has emerged as a pivotal force shaping the digital world. These industry juggernauts include the likes of Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and more. They provide an extensive array of cloud services, encompassing computing power, storage solutions, networking resources, and an impressive suite of software services. The impact of hyperscalers cannot be understated — for example AWS alone generated $80 billion USD in cloud services in 2022.

Partnering with hyperscalers represents a transformative opportunity for businesses seeking to propel themselves into the digital age. These collaborations grant access to unparalleled technological infrastructure, expansive service offerings, and a global reach that can significantly accelerate growth and innovation. 

In order to help you get started partnering with hyperscalers today, we are covering: 

• What are hyperscalers?
• The growth and popularity of hyperscalers
• Economic benefits of partnering with hyperscalers
• Why partnering is the way forward
• Starter tips for partnering with Hyperscalers

What are Hyperscalers?

Cloud hyperscalers, or hyperscalers, are a select group of large technology companies that operate massive, global-scale data centers and cloud computing platforms. These companies provide a wide range of cloud services and resources including computing power, storage, networking, and various software services. Hyperscalers are known for their ability to rapidly scale to meet the demands of millions of users and businesses worldwide.

Some key attributes of a hyperscaler are:

• Massive Infrastructure: Hyperscalers operate extensive data center networks across regions and countries, equipped with numerous servers, storage devices, and networking equipment.
• Global Reach: With strategically located data centers worldwide, they ensure low-latency access for global customers.
• Economies of Scale: Leveraging their vast infrastructure and customer base, hyperscalers offer competitive pricing and cost-effective services.
• Scalability: They can swiftly adjust computing resources to meet varying demand, crucial for handling large workloads during peak periods.
• Redundancy and Reliability: Hyperscalers prioritize redundancy and reliability, often replicating data across multiple centers for backup and disaster recovery.

As is true with most fields, some giants stand out from amongst the crowd in the realm of cloud computing. These major players have shaped the landscape and set the standards for the industry. Here are the key players you should know:

Amazon Web Services (AWS)

AWS is a subsidiary of Amazon.com and is one of the largest and most widely used cloud platforms globally. It provides a vast array of cloud services including computing, storage, databases, machine learning, and IoT.

Services include: 

Analytics & Data Lakes

AWS offers robust solutions for securely storing, categorizing, and analyzing all your data in a centralized repository. With AWS Analytics & Data Lakes services, businesses can harness the power of data to gain valuable insights and drive informed decision-making.

Machine Learning

AWS provides a comprehensive suite of services and platforms for building and deploying machine learning models. It boasts the broadest machine learning framework support in the industry, empowering businesses to leverage the full potential of AI and machine learning for enhanced innovation and automation.

Serverless Computing

With AWS Serverless Computing, businesses can build and run applications and services without the need to worry about managing servers. This approach streamlines development and allows organizations to focus on creating scalable and responsive solutions.

Storage

AWS offers durable and cost-effective storage options that cater to various needs, including backup, disaster recovery, and data archiving at petabyte scale. These storage solutions ensure data reliability and availability while optimizing costs for businesses of all sizes.

Learn about other services here.

Microsoft Azure

Azure is Microsoft's cloud computing platform, offering a comprehensive suite of services including virtual machines, AI and machine learning tools, and Azure DevOps for development and deployment.

Services include: 

Application Development: 

Azure enables businesses to build, manage, and continuously deliver cloud applications using any platform or programming language. It provides tools and services for developing and deploying applications efficiently and at scale.

Artificial Intelligence:

Azure offers AI capabilities to analyze images, comprehend speech, and make predictions using data. Businesses can leverage AI to gain insights, automate processes, and enhance customer experience.

Cloud Migration and Modernization:

Azure simplifies and accelerates the migration and modernization of applications and workloads. It provides guidance, tools, and resources to seamlessly transition to the cloud, ensuring improved scalability, reliability, and cost-effectiveness.

Data and Analytics:

Azure offers comprehensive data and analytics solutions for fathering, storing, processing, and visualizing data of any variety or volume. It empowers organizations to derive valuable insight from their data assets.

Learn about other services here.

Google Cloud Platform (GCP)

Google's cloud platform provides services such as Google Compute Engine, Google Kubernetes Engine, and BigQuery for data analytics.

Services include: 

Artificial Intelligence:

Google Cloud enables businesses to add intelligence and efficiency to their operations with AI and machine learning solutions. This includes Contact Center AI for customer interactions, Document AI for unlocking insights from documents, and Product Discovery for search and recommendations in retail.

APIs and Applications:

Google Cloud allows organizations to securely unlock their data with APIs, automate processes, and create applications across clouds and on-premises without coding. This includes creating new business channels using APIs, simplifying open banking compliance with Open Banking APIx, and unlocking legacy applications using APIs.

Databases:

Google Cloud provides comprehensive database solutions for migrating and managing enterprise data. This includes databases for games, tools for simplifying database migration, upgrading and modernizing operational databases, fully managed open-source databases, options for running SQL Server on Google Cloud, and a unified data approach known as Data Cloud.

Infrastructure Modernization:

Google Cloud helps organizations migrate and modernize workloads on its global, secure, and reliable infrastructure. This includes services like Active Assist for cloud resource optimization, application migration tools, backup and disaster recovery solutions, data center migration support, high-performance computing options, mainframe modernization tools, SAP certifications, virtual desktop solutions, and support for running Windows workloads.

Learn about other services here.

The key distinction between these major cloud providers and traditional cloud providers lies in their scale, offerings, and global reach:

Infrastructure

Major Cloud Providers

Major cloud providers have extensive global data center networks. They operate massive infrastructure spanning multiple regions and countries, giving them unparalleled scale and the ability to serve millions of customers worldwide.

Traditional Cloud Providers

Alternatively, traditional cloud providers might operate on a smaller scale and have fewer data centers — This makes them suitable for specific markets or smaller businesses.

Offerings

Major Cloud Providers

Major cloud providers offer a vast range of cloud services, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), software-as-a-service (SaaS), machine learning, and more. They provide a comprehensive ecosystem of tools and services to meet diverse needs.

Traditional Cloud Providers

Traditional providers may offer a more limited set of services focused on specific niches or industries. Their offerings might be specialized but not as extensive as those of the major players.

Global Reach

Major Cloud Providers

Major cloud providers have a global presence with data centers strategically located in various regions. This ensures low-latency access for customers worldwide, making them suitable for organizations with a global footprint.

Traditional Cloud Providers

Traditional providers might have a more localized or regional presence, which could limit their ability to serve clients with international operations efficiently.

Economies of Scale

Major Cloud Providers

Hyperscalers benefit from economies of scale, allowing them to offer competitive pricing and cost-effective services due to their enormous infrastructure and customer base.

Traditional Cloud Providers

Traditional providers might not have the same economies of scale, potentially resulting in higher costs for their services.

The Growth and Popularity of Hyperscalers

As of 2022, the global hyperscale cloud market size was valued at a substantial USD 172.26 billion. However, what's truly eye-catching is the projected growth trajectory. According to Fortune Business Insights, this market is expected to skyrocket and reach a staggering USD 231.12 billion by the year 2030. This growth is set to occur at a remarkable compound annual growth rate (CAGR) of 37.8% during the forecast period from 2023 to 2030.

One of the key drivers behind this meteoric rise is the extensive computing resources and storage capabilities that hyperscalers offer. Their cloud infrastructure is designed for large-scale applications, making them robust and reliable platforms.

Other reasons for increasing popularity include: 

• Empowering Remote Work and Digital Transformation: The COVID-19 pandemic accelerated the need for remote work and digital transformation. Hyperscalers proved instrumental in helping businesses navigate these challenges. Their cloud solutions allowed companies to adapt swiftly to remote work requirements and expedite their digital transformation initiatives, driving growth.
• SMEs Leading the Way: Small and medium-sized enterprises (SMEs) have been at the forefront of embracing hyperscale computing. These businesses have leveraged the cost advantages of hyperscalers, thanks to subscription-based models that eliminate upfront expenses. As hyperscale environments enable cost-efficient solutions, SMEs have recognized them as a path to improved cost-efficiency and competitiveness.
• E-commerce Transformation: The e-commerce sector has been one of the primary beneficiaries of hyperscale cloud solutions. The unparalleled scalability and efficiency offered by hyperscalers have allowed e-commerce businesses to meet surges in demand, optimize operations, and enhance customer experiences.

Economic Benefits of Partnering with Hyperscalers

As the popularity and reach of hyperscalers grow, partnering with them is an increasingly savvy economic decision. Their global presence and scalable resources offer unique growth opportunities that traditional cloud providers simply can’t, helping businesses scale rapidly.   

This is done through:

Economies of Scale

In today's evolving business landscape, partnering with hyperscalers has become a shrewd economic choice, primarily due to the incredible economies of scale they offer. These global giants possess vast resources and infrastructure that traditional cloud providers simply can't match, enabling businesses to scale rapidly and efficiently.

Achieving Economies of Scale

Hyperscalers operate strategically positioned data centers worldwide. By teaming up with them, businesses can seamlessly enter new geographical markets, gaining access to previously untapped customer bases. This expanded market presence often translates into substantial revenue growth as companies tap into international opportunities.

Moreover, the global infrastructure of hyperscalers ensures low-latency access for users, greatly enhancing the overall user experience. This is particularly valuable for businesses that provide real-time services, reinforcing customer satisfaction and loyalty.

Cloud Costs

One of the compelling benefits of partnering with hyperscalers lies in the realm of cloud costs. These tech giants offer a unique pricing model that aligns with the pay-per-use principle, which can be a game-changer for businesses looking to optimize their expenses.

Unlocking Cost Efficiency

Hyperscalers provide an extensive range of cloud services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). This diverse portfolio empowers businesses to innovate and develop new products and services, all while benefiting from scalable and elastic cloud resources on-demand. This scalability ensures that companies always have the necessary resources available to meet customer demands during peak periods.

Efficient resource scaling often leads to higher customer satisfaction and repeat business, ultimately contributing to revenue growth. Additionally, by leveraging the cost-effective services of hyperscalers, businesses can reduce their infrastructure and operational costs, allowing them to reinvest these savings into other revenue-generating initiatives.

Migration Costs

When contemplating a move to hyperscaler services, businesses often wonder about the associated migration costs. Fortunately, these concerns are outweighed by the substantial advantages offered by hyperscalers.

Seamless Migration Opportunities

Hyperscalers facilitate seamless migration with their extensive expertise and resources. They provide comprehensive support and tools to help businesses transition their operations to the cloud smoothly. Whether it's moving applications, data, or entire systems, hyperscalers streamline the migration process, minimizing disruptions and associated expenses.

Furthermore, hyperscalers' global infrastructure ensures data redundancy and disaster recovery capabilities, reducing the risk of costly downtime. This peace of mind is invaluable for businesses that rely heavily on uninterrupted operations.

Pay-Per-Use

The pay-per-use model stands out as a key driver behind the cost-efficiency of hyperscaler services. This flexible pricing structure offers significant advantages for businesses of all sizes.

Embracing Pay-per-use Flexibility

With hyperscalers, businesses pay only for the resources they actually use. This dynamic pricing approach allows for cost optimization, especially during periods of fluctuating demand. It ensures that companies have the agility to scale up or down based on their immediate needs, effectively eliminating the burden of overprovisioning and overspending.

Moreover, the pay-per-use model encourages resource optimization and cost control, empowering businesses to allocate their budgets more strategically.

Efficiency

Efficiency is at the core of hyperscaler services, and it plays a pivotal role in boosting business performance.

Optimizing Operational Efficiency

Hyperscalers offer advanced analytics tools that enable businesses to extract valuable insights from data. This data-driven approach allows companies to tailor their products and services to meet specific customer needs, ultimately enhancing customer satisfaction.

Additionally, hyperscalers provide access to machine learning capabilities that can be leveraged to develop personalized recommendations, predictive models, and automation features. These intelligent solutions not only enhance the customer experience but also streamline internal processes, leading to increased operational efficiency.

Productivity

Partnering with hyperscalers can have a profound impact on a company's productivity and innovation potential.

Fostering Innovation and Productivity

Hyperscalers empower businesses to stay at the forefront of innovation. They offer resources and technologies that enable the development of new mobile apps, interactive websites, and cutting-edge solutions like augmented reality. This innovation-driven approach helps businesses remain competitive and agile in rapidly evolving markets.

Furthermore, through strategic partnerships and collaborations within the hyperscaler ecosystem, businesses can explore innovative ventures and shared revenue models. These collaborative environments open up new avenues for productivity and revenue generation, expanding the horizons of business growth.

Why Partnering is the Way Forward

Partnering with cloud hyperscalers means gaining access to a wealth of digital expertise and resources. These tech giants have honed their cloud infrastructure over years, making it robust and reliable. By collaborating with them, businesses can enhance their own operations, knowing they have a solid digital foundation.

Moreover, hyperscalers offer a wide range of services and tools that help businesses grow and adapt in the digital era. Whether it's advanced analytics, machine learning capabilities, or strong security measures, these resources enable companies to stay competitive and agile in a rapidly changing landscape. In essence, teaming up with cloud hyperscalers is like acquiring a strategic ally in the digital world - a partnership that can drive growth and success in today's interconnected business environment.

Plus, co-selling with hyperscalers grants access to their extensive networks and resources, translating into significant sales and market expansion advantages. By aligning your product or service offerings with those of hyperscalers, your business can leverage their established reputation and widespread reach to attract more customers. This collaborative approach often leads to increased revenue prospects, faster sales cycles, and a competitive advantage in the marketplace.

Some examples of companies that have partnered with hyperscalers include: 

• Netflix and AWS: Netflix leveraged Amazon Web Services (AWS) for their streaming platform. This partnership allowed Netflix to scale rapidly, handle massive amounts of data, and deliver content seamlessly to millions of viewers worldwide.
• MemoQ and Microsoft Azure: Seeking enhanced scalability and operational efficiency, translation management software provider MemoQ transitioned to Microsoft Azure. The move allowed MemoQ to harness Azure's reliable and secure infrastructure, fortifying its software offerings and supporting global clients effectively.
• Paypal and Google Cloud: PayPal streamlined operations and achieved significant cost savings by migrating its scalable payment platform to Google Cloud. This transition enabled rapid cloud-based processing, ensuring seamless service during surges in transactions in 2020, aligning with PayPal's mission.

Starter Tips for Partnering with Hyperscalers

When selecting a hyperscaler to partner with, meticulous research is paramount to ensure alignment with your business needs. Begin by identifying your specific requirements, such as:

• Scalability 
• Geographic reach 
• Security measures 
• Available services like AI and machine learning

Assess each hyperscaler's offerings, track record, and industry reputation. Moreover, consider the compatibility of their platform with your existing infrastructure, as well as their pricing structure. By conducting thorough research and evaluating these factors, you can make an informed decision that maximizes the benefits of your partnership with a hyperscaler.

Once you’ve decided on a hyperscaler partner, software can help you streamline your partner workflows and begin generating revenue as quickly as possible. For example, tools like WorkSpan can greatly assist companies in establishing and optimizing partnerships with hyperscalers - such as AWS and Microsoft - by streamlining the co-selling process. The platform helps in increasing joint co-sell pipeline by 50%, average deal size by 24%, average win rates by 24%, and deal velocity by 30%. These improvements contribute to revenue growth and overall partnership success.
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This is done via:

• Efficient Co-Sell Management: WorkSpan provides a turnkey solution for co-selling with top cloud hyperscalers. It allows businesses to bi-directionally share referrals and opportunities seamlessly with the cloud providers' partner portal directly from within their CRM systems. This eliminates manual data entry, reduces errors, and ensures timely submission of referrals and opportunities.
• Secure Tracking and Collaboration: WorkSpan facilitates deeper collaboration on joint opportunities with cloud hyperscalers. It offers visibility into pipeline updates, required actions, and deal alerts, enabling secure tracking of co-sell opportunities and progress. This collaboration is crucial for efficient partnership management.
• Real-time Data and Reporting: WorkSpan offers a unified platform to gain complete visibility into co-sell opportunities. It provides real-time data and automated reports that showcase key metrics, including sales stage progression, regional performance, partner-sourced revenues, and more. This real-time reporting helps in tracking performance and enables data-driven actions.

WorkSpan also offers specific solutions for co-selling with hyperscalers like AWS and Microsoft, making it easier for businesses to manage end-to-end co-sell deals efficiently and accelerate deal cycles.

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Partnering with cloud hyperscalers requires thorough research and careful selection to align with your specific business needs. Choosing the right partner can boost competitiveness, enhance agility, and expand your market reach. Tools like WorkSpan can simplify partner workflows, maximize co-selling potential, and drive revenue growth.

Collaborating with cloud hyperscalers  fosters innovation and leads to success in the interconnected business landscape. Embracing these partnerships is more than a choice; it's a strategic necessity for businesses to scale and thrive.