From Hyperscaler to LocalScaler. Why Proximity Matters for Service Providers.

For nearly two decades, the cloud has been defined by one word: hyperscaler.
Vast, centralised data platforms promised infinite capacity, automation, and reach.

But for Managed Service Providers (MSPs), that promise often came with a hidden tax. rising costs,  complexity, opacity, and loss of control. Pricing models that shift without warning. Compliance requirements that can’t be met with confidence. Customer data stored out of reach.

Do not confuse this article as a swipe at hyperscalers. The hyperscale model works effectively for those who have the resources and time to manage the sprawl before it becomes an IT pandemic! (We know of organisations who hire people simply to manage the sprawl, cost increases and reign in on ever increasing costs). However, it doesn’t work as well for everyone and for those who are on-selling or managing services for their own customers, well it can be less than ideal!

Exaba was one of several sponsors at the recent Cloud & Data Centre Conference in Auckland last week. Our own Dr. Stuart Inglis was one a several presenters who provided a view on the growing demands of business and the impact this will have on data centres and cloud providers of the future. 

Amongst the topics discussed was the demand for data to be closer to where it is needed, for processing and for compliance. A recent report from Veeam highlighted that over 68% of CIOs were prioritising a local data strategy over a more centralised (hyperscale) model. 

DLA Piper (who were also represented at the conference, recently reported a 300% increase in cross border fines for data breaches between 2021-2024. We are seeing a step change in behaviours and decisions when it comes to managing and storing data.

The Rise of the LocalScaler

Exaba was founded on a different belief: that control, proximity, and transparency should define the next generation of cloud infrastructure.

Instead of centralising data in vast hyperscale centres, Exaba enables a network of distributed storage clusters, deployed closer to where data is created and consumed. Together, these form a new type of scale,  LocalScale,  where automation meets compliance, and performance meets simplicity.

This is the LocalScaler philosophy: global reach, delivered locally,  designed from the ground up for MSPs who want to own their infrastructure, their relationships, and their future.

Why Local + Scalable Wins

Control and Compliance. In an era of increasing regulation, MSPs and enterprises need to prove where data resides and under which jurisdiction it’s governed. A LocalScaler architecture makes that easy, every node, every cluster, every byte of data is accounted for, locally.

Proximity Builds Trust

When data sits close to the people who depend on it, performance improves and trust deepens. Customers don’t want “somewhere in the cloud.” They want “here, in our region, under our control”.

Transparent Economics

Hyperscale pricing has always been a black box,  complex, unpredictable, and rarely in the provider’s favour. Exaba’s LocalScaler model replaces that with flat, transparent pricing,  as low as $2 per terabyte per month (even lower with volume commitments), allowing partners to scale profitably and confidently.

Built for Backup

While the world chases the AI workloads of the future,  Exaba is solving one of the biggest challenges enterprises and service providers face today: backup resilience. Backups are no longer an afterthought,  they’re a lifeline. Yet ransomware has turned them into a primary target. 

With greater emphasis on backups and more copies required (3-2-1-1-0), it is no wonder that current estimates put backup data as accounting for between 605-80% of all data. In 2025 we surpassed 200 zettabytes of data with this expected to double by 2028 and double every year after that!

“Backup is where resilience begins, and it’s where complexity has crept in,” says Dr. Stuart Inglis, CTO & Co-Founder of Exaba.

 “Ransomware has made backups the first target, yet many remain locked in costly, opaque cloud environments that make recovery harder. Exaba’s approach brings simplicity and control back to the centre,  ensuring MSPs and enterprises can protect, recover, and manage data on their terms.”

Real Solutions for Real Providers

Exaba’s platform replaces external hyperscaler endpoints with Exaba-powered, S3-compatible local storage clouds, enabling:

• Up to 80% margin gains
• Full sovereignty and compliance control
• MSP-branded cloud identity and transparent pricing
• Seamless integration with major backup vendors, Veeam, Commvault, RClone and more.
• Customer managed and owned hardware flexibility, running on standard servers for ultra-low deployment costs

From Hype to Here

Hyperscale was about size. LocalScale is about trust, control, and proximity.

With Exaba, service providers gain:

• Storage that is sovereign by design
• Local proximity through distributed clusters
• Predictable pricing with no egress or hidden fees
• Backup assurance built into every deployment
• Resilient enterprise-grade design (Built in Rust for the techies our there!)

The Future Is LocalScale

The next era of cloud won’t be won by whoever has the largest data centre,  it will be defined by who delivers the closest, most trusted, and most transparent experience.

Exaba is leading that shift. A new model for the data age,  distributed, local, and built for service providers. Because the future of the cloud isn’t about being everywhere. It’s about being exactly where it matters most.

Exaba™ – limitless possibilities.