Hyperscalers are now a critical part of today's Data-Driven World

Dr. Gulshan Rai, Former National Cyber Security Coordinator & Former DG, CERT-In  

"Data plays a crucial role in the transformation brought about by emerging technologies. Whether you are monitoring activities, analyzing videos, playing online games, browsing the internet, or making phone calls, data is constantly being generated. This close relationship between emerging technologies and data is evident. In 2000, the total data generated worldwide was approximately one zettabyte. By 2023, this figure has skyrocketed to around 272 zettabytes, highlighting the massive increase in data due to technological advancements and our constant use of connected devices.

The interconnected world we live in relies heavily on these technologies, and managing this vast amount of data poses significant challenges. This is where hyperscalers come into play. Hyperscalers have evolved significantly over the past five years, with new models such as Infrastructure as a Service (IaaS) and Software as a Service (SaaS), as well as private and hybrid clouds.

Hyperscalers are now a critical part of today's data infrastructure, offering benefits like ease of use, elasticity, flexibility, and security. Despite some skepticism about hyperscalers, they present both opportunities and challenges. As of December 2024, the total installed capacity of hyperscalers is about 1.2 gigawatts, with companies like AWS and Google leading the way. Approximately 800 megawatts of this capacity is from third-party hyperscalers. Marketing efforts emphasize the benefits of hyperscalers, but there is a growing trend towards private clouds. About 12% of organizations have migrated to the cloud, with around 40% of these using dual hyperscalers. The shift towards private clouds is driven by various factors, including legal considerations and the need for greater control over data.

Hyperscalers are a critical component of the current digital information system. Addressing the legal issues associated with hyperscalers is essential for ensuring security and compliance. Many software companies, such as Oracle and Microsoft, are moving towards cloud-based licensing models to combat piracy and improve software management."