When people speak of “the cloud,” they tend to refer to the big three: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Together, they control more than two-thirds of the global market. But they are not the whole picture. And smaller providers — Oracle, IBM, and Alibaba to regional and niche players like OVHcloud, Hetzner, Scaleway, DigitalOcean, and Wasabi — are continuing to expand by providing something different.
So what actually distinguishes the hyperscalers from others? And what might lead organizations — predominantly in Europe — to hesitate to double down on the big three?
1. Scale and Global Reach
- AWS, Azure, GCP:
- Other providers:
👉 Tip: If your business is truly global, hyperscalers prevail. If you are region-specific, a specialist provider may be more effective.
2. Breadth of Services vs. Complexity
- AWS, Azure, GCP:
- Other providers:
👉 Lesson: Big clouds do mean you can be innovative but can also be dependent. Smaller providers give you focus and flexibility.
3. Pricing and the Illusion of Cheap
- AWS, Azure, GCP:
- Other providers:
💡 Key Takeaway: Hyperscalers are nearly always more expensive than managed hosting or hardware-for-rent models in Europe. Renting bare-metal servers with managed services can deliver similar performance at a lower TCO — without paying for unused features.
4. EU Regulation and Sovereignty
Now this gets political.
- The EU’s Data Act and AI Act aim at guaranteeing digital sovereignty. However, most European enterprises still host sensitive workloads on U.S.-controlled hyperscalers.
- Under the U.S. CLOUD Act, American companies can be compelled to hand over data, even if it’s stored in Europe. This creates legal uncertainty around banks, governments, and healthcare providers in the EU.
- So European regulators and CIOs increasingly view reliance on U.S. clouds as a sovereignty risk.
Smaller European providers (OVHcloud, Scaleway, Deutsche Telekom’s Open Telekom Cloud) are picking up on this by ensuring data stays in Europe and is governed by European law.
5. The Lock-In Problem
It’s simple. You can get onto a hyperscaler with migration tools, free credits, and onboarding teams.
But getting off? That’s where the trap lies.
- Proprietary databases, AI frameworks, serverless functions, and APIs don’t necessarily move.
- Egress fees (paying to get your data out of the cloud) create financial barriers.
- Complicated contracts and enterprise agreements bind customers for years.
👉 Once you’re deep into AWS, Azure, or Google Cloud, re-engineering workloads toward on-prem or moving to another provider is almost impossible.
6. Compliance and Industry Fit
- Hyperscalers:
- Other providers:
7. Innovation vs. Specialization
- AWS, Azure, GCP:
- Other providers:
The Strategic Choice
So what do decision-makers need to think about?
- If you need global scale and advanced services, hyperscalers are unmatched.
- If you want predictability, sovereignty, and lower costs, regional providers or managed hosting often win.
- For some, the answer is a multi-cloud or hybrid approach: run AI workloads on a hyperscaler, hold sensitive or critical data with a sovereign provider, and use managed hosting for cost-sensitive workloads.
Final Thoughts
The big three clouds are powerful — but they come with strings attached: higher costs, lock-in, and sovereignty risks. Smaller and regional providers offer simpler pricing, local compliance, and more freedom.
In Europe in particular, the debate isn’t merely technical — it is political. Depending entirely on U.S. hyperscalers may solve today’s scaling problems, but it poses long-term risks to sovereignty and independence.
💡 Takeaway for business leaders: Don’t just ask “Which cloud is the biggest?” Ask “Which cloud best aligns with my strategy, compliance, and sovereignty needs?” The best choice might be a well-balanced one.
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