Launching Hyperscale.ai to build industry clouds

On Tuesday we will be launching a new company, Hyperscale.ai as we host the first Fintech Web Services Swap Meet. Our goal is to help industries reorganize around cloud and shared services. We buy, package, broker and fund existing services for resale.

Big things are happening as industries reorganize for the cloud. In the old IT infrastructure, each company runs thousands of applications in the basement. About 70% of their IT budget goes to maintaining these applications, and they get only infrequent ( and sometimes traumatic) upgrades. In the new “service” architecture of the cloud, they replace a lot of their infrastructure with cloud services, SaaS applications, and Web services. The maintenance costs are far lower because the services are shared, and the upgrades are instant and continuous.

Where do these shared services come from? A lot of them come from what we call hyperscaling. This article explains how you take something that you do well, package it as a cloud service, and sell it globally. That’s how Amazon created their fabulously successful AWS business, how Google and Microsoft followed, and how companies like Goldman Sachs and GE are taking leading positions in their industries. We believe that we can find many more of these opportunities.

We are partnering for this launch with investment banker Jeremy Josse and other financial advisors. They give us the dealmaking firepower so that we can buy, build, fund, and launch Web services along with industry partners. We think we can create a new asset class. Enterprise Web services provide a long term revenue stream that will be attractive to investors.

We are testing out a Swap Meet format as the fastest and most fun way to build industry clouds. It might work. It might start something amazing!

We also believe this may provide a fast and easy way to move from the old monolithic architectures to a new cloud architecture. During this move, a company makes decisions about each piece of IT infrastructure — to buy, build, bury, or sell a particular component. With hyperscaling, they gain more options to buy, and a new option to sell.

BUY: You can buy services from SaaS and cloud vendors. This should save you the 70% that you were spending on maintenance and upgrades, and it gets you more frequent upgrades. Buy to save money.

BUILD: Build the special sauce for your business. Move it into a service architecture for continuous delivery and cloud deployments. Build to be more adaptable.

BURY: If an old application is working fine, you can freeze it and bury it under an API. Bury to set priorities.

SELL: Sell your best business capabilities as industry shared services. Hyperscale to scale up and make money.

Please come to the Swap Meet on Tuesday, May 23, after work from 6:00–8:00, at the Fort Point WeWork in Boston.