The Legacy Way of Cloud... and Its Challenges

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Aug 27, 2025

Article 1/5 of the “5 Days of Cloud with GAIMIN” content series

Cloud Computing… A Quick Primer

Before the cloud, if you wanted to run an app or host a website, you had to buy physical servers, maintain them yourself, and scale manually; we called this “On-prem solutions”. This was expensive, complex, and inflexible, especially for startups or small developers.

Cloud computing changed all of that.

Cloud computing is the delivery of computing services, such as storage, databases, networking, software, and analytics, over the internet (“the cloud”). Rather than buying and maintaining hardware, you rent what you need, when you need it.

And this was going great! The Big 3 — Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) — made it possible for clients to:

  • Spin up virtual machines on demand.

  • Store massive amounts of data across regions.

  • Host applications without owning a single server.

This convenience powered the SaaS explosion, gave birth to the rise of global-scale platforms like Netflix and Uber, and allowed solo developers to deploy apps used by millions today.

Centralization: The Foundation of Traditional Cloud

Traditional cloud computing services mostly run on a centralized model, where the vast majority of cloud infrastructure is owned and controlled by just a few companies like AWS, Azure, and Google Cloud.

This worked brilliantly at first:

  • Centralization made it easier to scale globally.

  • Developers could deploy apps without worrying about servers.

  • Businesses got flexibility, speed, and reach.

But that same centralization has now introduced some risks:

  • Single points of failure: As we would find out over time, after many historic shutdowns that one outage can break the internet when it’s heavily centralized in the hands of very few.

  • Vendor lock-in: Because of how expensive it was to build these massive centres on behalf of the clients and provide them with the services to host them online, moving away becomes technically and financially painful, especially when the cloud firms have to recover this investment somehow.

  • Loss of control: In terms of service, surveillance, censorship, and price changes, this can be out of the hands of the clients, especially when there were very limited options to pick from, due to the monopolized cloud environment.

  • Hidden costs: What looks cheap early on becomes expensive when it’s time to scale, or later down the line when the client is fully dependent on the service.

The tradeoff was clear:

You get the service at the cost of control and options.

And fast forward to current times, many shutdowns and blackouts later, coupled with the demand for cloud computing increasing with the rise of AI, file sharing, online gaming, and real-time apps, the challenges with this legacy model have started becoming more glaring.

And now, as workloads become heavier, the demands are outweighing the supply; the cracks in the system are becoming harder to ignore. So, how do we go forward?

What Comes Next?

If the current cloud model is starting to break down, then what replaces it?

More data centers? A new architecture entirely? One that:

  • Distributes infrastructure rather than centralizing it.

  • Rewards contributors, not just corporate owners.

  • Builds resilience and security by design, not exception.

That’s the subject of our next article in the series, so make sure to check out Article 2 in the “5 Days of Cloud” content series on the GAIMIN Cloud blog!

Read more

From Cloud First to Cloud Smart: The New Enterprise Cloud Playbook

The enterprise cloud has matured. The rush to migrate has slowed, replaced by a focus on optimization. The winners in this next phase will be the ones who don’t just consume cloud services, they orchestrate them. A Cloud-smart model is the foundation for that orchestration. It’s about taking control of your business’ cloud journey, applying intelligence to placement and cost, and continuously adapting to new realities in revolution, performance, and scale.

The Threat of Cloud Cost Crisis for Startups and SMEs

The cloud was supposed to be startups’ greatest enabler. At least, it starts that way, with the trend of giving Cloud credits to startups and SMEs to launch their businesses. But when it inevitably gets to a point where these startups now have to start paying the premium prices for these services, after their credits are exhausted, it becomes a huge burden for these young companies to scale efficiently. The same tool that helped launch so many unicorns in the past is now increasingly becoming a burden for the same companies. Rising cloud bills are consuming margins, limiting growth, and forcing investors to question the sustainability of the model. There is no doubt about a looming Cloud Cost Crisis, and it’s up to us, key players in the industry, to discuss it, create and adopt alternative solutions.

Why Europe is Reconsidering U.S. Clouds

For a while now, Europe has relied heavily on US-based hyperscalers like AWS, Microsoft Azure, and Google Cloud. These platforms have powered key industries across the continent, from banks, healthcare, transport, to startups. But in these recent years, that dependency is no longer a given. European regulators, enterprises, and even citizens are pushing back. The question is no longer if Europe should rethink its reliance, but how fast it should move, and what alternatives within the continent can realistically fill the gap.