Published: 8 October 2024
Contributors: Stephanie Susnjara, Ian Smalley
Hybrid cloud combines and unifies public cloud, private cloud, and on-premises infrastructure to create a single, flexible, cost-optimal IT infrastructure.
A core advantage of hybrid cloud is agility, which allows organizations to respond to change and capture growth opportunities by rapidly provisioning computer resources. Additionally, hybrid cloud integration enables companies to harness the latest technological advancements, including artificial intelligence (AI), IoT and edge computing, to gain competitive advantage.
In an IMARC Group survey, the global hybrid cloud market size reached US $125 billion in 2023 and is projected to expand to US $558.6 billion by 2032.1 Accelerated digital transformation and broad adoption of cloud services are driving this growth, providing businesses with scalability, cost reduction and operational flexibility.
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Hybrid cloud infrastructure varies according to an organization's specific business objectives, yet all still share a mix of computing environments, including the following.
On-premises is a traditional computing environment where an organization runs and manages its own hardware, software, data storage and other computing resources at its own physical location. Examples include an office building or an on-premises data center.
Private cloud is a cloud computing environment where all resources are isolated and operated exclusively for one customer. Private cloud combines many benefits of cloud computing with the security and control of on-premises IT infrastructure.
Organizations in industries that deal with strict regulatory compliance and sensitive (for example, banking, healthcare and government) usually require private cloud settings.
Public cloud is a cloud computing setting hosted by a third-party cloud service provider (CSP), such as Amazon Web Services (AWS), Microsoft Azure, IBM Cloud® or Google Cloud.
These CSPs host public cloud IT resources like virtual machines (VMs) to complete enterprise-grade infrastructures and development platforms over the public internet on a “pay-as-you-go” pricing basis.
These are four main public cloud service offerings that provide different levels of support and service:
For a deeper dive on how these different public cloud service offerings compare, see “What are IaaS, PaaS and SaaS?”
Besides a mix of on-prem, private cloud and public cloud settings, hybrid cloud architecture relies on the following critical components:
Hybrid cloud deployments require robust networking capabilities, including wide area network (WAN), virtual private network (VPN) and application programming interfaces (APIs).
Hybrid cloud architecture relies on virtualization technology, enabling the division of a single computer's hardware components—such as processors, memory and storage—into multiple virtual machines. Virtualization enables better resource utilization and flexibility by allowing users to run multiple applications and operating systems on the same physical hardware.
Containerization is the packaging of software code with just the operating system (OS) libraries and dependencies required to run the code to create a single lightweight executable—called a container—that runs consistently on any infrastructure.
Modern hybrid cloud computing involves a unified platform for discovering, operating and managing on-premises, private and public cloud data and resources.
Check out this video, "Hybrid Cloud Explained," which reveals how organizations can tailor a hybrid cloud environment to meet their business needs.
Initially, hybrid cloud architecture focused on the mechanics of transforming portions of a company's on-premises data center into private cloud infrastructure. It also focused on connecting that infrastructure to public cloud environments hosted off-premises by a public cloud provider. Businesses accomplished this using a prepackaged hybrid cloud solution, such as Red Hat® Open Stack.
Other methods included using sophisticated enterprise middleware to integrate cloud resources across the environments and unified management tools to monitor, allocate and manage those resources from a central console or 'single pane of glass.'
Today, hybrid cloud architecture focuses less on physical connectivity and more on supporting the portability of workloads across all cloud environments. It also focuses on automating the deployment of those workloads to the best cloud environment for a given business need. Several trends have driven this shift.
First off, organizations are building new applications and modernizing legacy applications to use cloud-native technologies. These technologies enable consistent and reliable development, deployment, management and performance across cloud environments and across cloud vendors.
Specifically, they're building or transforming applications to use microservices architecture, which breaks applications into smaller, loosely coupled, reusable components focused on specific business functions. And they're deploying these applications in containers, which have become the de facto compute units of modern cloud-native applications
At a higher level, public and private clouds are no longer physical 'locations' to connect. For example, many cloud vendors now offer public cloud services that run in their customer's on-premises data centers. Private clouds, once run exclusively on-premises, are now often hosted in off-premises data centers on virtual private networks (VPNs) or virtual private clouds (VPCs). Private clouds are also hosted on dedicated infrastructure rented from third-party providers.
What's more, infrastructure virtualization—called Infrastructure as Code—lets developers create these environments on demand by using any compute resources or cloud resources located behind or beyond the firewall. This technology has taken on greater significance since the explosive growth of edge computing, which improves global application performance by moving workloads and data closer to IoT devices or local edge servers.
Today, most enterprise businesses rely on a hybrid multicloud environment. Multicloud is a cloud computing solution that combines public cloud services from more than one cloud vendor and is portable across multiple cloud providers' cloud infrastructures. A hybrid multicloud approach creates greater flexibility and reduces an organization's dependency on one vendor, preventing vendor lock-in.
A unified hybrid multicloud ecosystem includes the following:
Cloud-native development lets developers transform monolithic applications into units of business-focused functionality that can run anywhere and be reused within various applications.
A standard operating system lets developers build any hardware dependency into any container. Kubernetes orchestration and automation give developers granular, set-it-and-forget-it control over container configuration and deployment (including security features for real-time monitoring, load balancing, scalability and more) across multiple cloud environments.
In a report from the IBM Institute for Business Value (IBV), the value derived from a hybrid multicloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud vendor approach.
Organizations are realizing significant benefits from such a platform, including the following:
A unified hybrid cloud platform can help expand the adoption of agile and DevOps methodologies and enable development teams to develop once and deploy to all clouds.
With more granular control over resources, development and IT operations teams can optimize spend across public cloud services, private clouds and cloud vendors. Hybrid cloud also helps companies modernize applications faster and connect cloud services to data on cloud or on-premises infrastructure in ways that deliver new value.
A unified platform lets an organization draw on best-of-breed cloud security and regulatory compliance technologies and implement security and compliance across all environments in a consistent way.
This includes shorter product development cycles, accelerated innovation and time-to-market, faster response to customer feedback and more rapid delivery of applications closer to the client (for example, edge ecommerce).
Building the right hybrid cloud model is complex and requires a hybrid cloud management strategy. While each hybrid cloud management strategy looks different based on individual business goals, organizations should follow a few basic steps.
Generative AI represents a transformative technology that offers businesses the opportunity to accelerate digitization. Enterprise organizations are already capitalizing on generative AI to improve virtual assistants for better customer experiences, automate routine processes for accelerated workflows, and more.
Modern hybrid cloud ecosystems support generative AI workloads, which require big data processing and massive compute power.
According to an IBM IBV survey conducted by Harris Poll, 68% of hybrid cloud adopters have already established formal, organization-wide policies to direct their approach to generative AI.
Hybrid cloud offers businesses numerous use cases, including the following:
Reserve behind-the-firewall private cloud resources for sensitive data and highly regulated workloads. Use more economical public cloud resources for less sensitive workloads and data.
Use public cloud compute and cloud storage resources to scale up quickly, automatically and inexpensively in response to unplanned spikes in traffic without impacting private cloud workloads (this is called 'cloud bursting’).
Adopt or switch to the latest AI or SaaS advancements and even integrate those solutions into existing applications without provisioning new on-premises infrastructure.
Use public cloud services to improve the user experience of existing apps or to extend them to new devices.
Employ cloud migration strategies, including VMware migration. 'Lift and shift' existing on-premises workloads to virtualized public cloud infrastructure to reduce the on-premises data center footprint and scale as needed without more capital equipment investment.
Run workloads with predictable capacity on private cloud and migrate more variable workloads to public cloud. Use public cloud infrastructure to quickly 'spin up' development and test resources as needed.
Utilize a hybrid cloud computing model for backup and disaster recovery (BDR). BDR involves making copies of files and storing them in one or more remote locations, as well as using the copies in case of data loss or corruption.
IBM® provides you with the most comprehensive and consistent approach to development, security, and operations across hybrid environments. Our hybrid cloud approach offer up to 2.5x more value than a public cloud-only approach.
Deploy highly available, fully managed Kubernetes clusters for your containerized applications with a single click.
IBM® Storage for hybrid cloud empowers you to deploy cloud architectures on-premises and extend them seamlessly to public cloud environments.
Use our cloud services, powered by our purpose-built IBM Consulting Cloud Accelerator platform, to accelerate your journey to hybrid cloud, driving cost efficiency, increased productivity, sustainability and faster time to market.
Kubernetes, also known as k8s or kube, is an open source container orchestration platform for scheduling and automating the deployment, management and scaling of containerized applications.
To capture the most value from hybrid cloud, business and IT leaders must develop a solid hybrid cloud strategy supporting their core business objectives.
In the business sphere, both large enterprises and small startups depend on public cloud computing models to provide the flexibility, cost-effectiveness and scalability needed to fuel business growth.
This lightboard video reveals the key advantages an organization can gain with the correct hybrid cloud strategy.
Microservices, or microservices architecture, is a cloud-native architectural approach in which a single application is composed of many loosely coupled and independently deployable smaller components or services.
Infrastructure as Code (IaC) uses a high-level descriptive coding language to automate the provisioning of IT infrastructure.
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1 Hybrid Cloud Market Report, IMARC Group, 2024