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Published: 8 October 2024
Contributors: Stephanie Susnjara, Ian Smalley

What is hybrid cloud?

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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How does hybrid cloud work?

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 ("on-prem")

 

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

 

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

 

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:

  1. Software-as-a-Service (SaaS) is on-demand access to ready-to-use, cloud-hosted application software.
  2. Platform-as-a-Service (PaaS) is a complete cloud platform—hardware, software and infrastructure—for developing, running and managing applications.  
  3. Infrastructure-as-a-Service (IaaS) is a cloud computing model that delivers fundamental compute, network and storage resources.
  4. Serverless computing (serverless) is an application and execution model that allows developers to build and run application code without provisioning or managing servers or back-end infrastructure.

For a deeper dive on how these different public cloud service offerings compare, see “What are IaaS, PaaS and SaaS?

Critical hybrid cloud components

Besides a mix of on-prem, private cloud and public cloud settings, hybrid cloud architecture relies on the following critical components:

  • Network connectivity
  • Virtualization
  • Containerization
  • Hybrid cloud management platform

Network connectivity

 

Hybrid cloud deployments require robust networking capabilities, including wide area network (WAN), virtual private network (VPN) and application programming interfaces (APIs).

Virtualization

 

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

 

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.

Hybrid cloud management platform

 

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.

The evolution of hybrid cloud

Traditional hybrid cloud architecture

 

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.'

Modern hybrid cloud architecture

 

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.

Hybrid multicloud

 

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:

  • Support for cloud-native application development and deployment across all cloud types (public and private) and cloud providers
  • A single operating system across all environments
  • A container orchestration platform—typically Kubernetes—that automates the deployment of applications across cloud environments

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.

Benefits of a hybrid multicloud platform

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:

  • Improved developer productivity
  • Greater infrastructure efficiency
  • Improved regulatory compliance and security
  • Overall business acceleration

Improved developer productivity

 

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.

Greater infrastructure efficiency

 

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.

Improved regulatory compliance and security

 

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.

Overall business acceleration

 

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).

4 steps to establish a hybrid cloud management strategy

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.

1. Define policies, roles and responsibilities for team members across the hybrid cloud ecosystem.
2. Identify workloads and decide where to locate them, whether in private cloud, public cloud or on-premises settings.
3. Review cloud service level agreements (SLAs). Carefully review conditions regarding system uptime, latency and data availability.
4. Establish a zero-trust approach to security management. Data security is the data owner's responsibility, requiring organizations to meet consistent security, compliance and regulation policies across on-hybrid cloud settings.
Hybrid cloud and generative AI

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 use cases

Hybrid cloud offers businesses numerous use cases, including the following:

  • Security and regulatory compliance
  • Scalability and resilience
  • Rapid adoption of new technology
  • Enhancing legacy applications
  • Cloud migration
  • Resource optimization and cost savings
  • Backup disaster and recovery (BDR)

Security and regulatory compliance

 

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.

Scalability and resilience

 

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’).

Rapid adoption of new technology

 

Adopt or switch to the latest AI or SaaS advancements and even integrate those solutions into existing applications without provisioning new on-premises infrastructure.

Enhancing legacy applications

 

Use public cloud services to improve the user experience of existing apps or to extend them to new devices.

Cloud migration

 

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.

Resource optimization and cost savings

 

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.

Backup and disaster recovery

 

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.

Related solutions
Hybrid cloud solutions

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.

Explore IBM hybrid cloud solutions
Red Hat OpenShift® on IBM Cloud

Deploy highly available, fully managed Kubernetes clusters for your containerized applications with a single click.

Explore Red Hat OpenShift on IBM Cloud
IBM hybrid cloud storage

IBM® Storage for hybrid cloud empowers you to deploy cloud architectures on-premises and extend them seamlessly to public cloud environments. 

Explore IBM Storage for hybrid cloud
IBM cloud consulting services

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.

Explore IBM consulting services
Resources What is Kubernetes?

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.

How to build a successful hybrid cloud strategy

To capture the most value from hybrid cloud, business and IT leaders must develop a solid hybrid cloud strategy supporting their core business objectives.

Public cloud use cases: 10 ways organizations are leveraging public cloud

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.

What is hybrid cloud?

This lightboard video reveals the key advantages an organization can gain with the correct hybrid cloud strategy.

What are microservices?

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.

What is Infrastructure as Code (IaC)?

Infrastructure as Code (IaC) uses a high-level descriptive coding language to automate the provisioning of IT infrastructure.

Take the next step

Red Hat OpenShift on IBM Cloud offers developers a fast and secure way to containerize and deploy enterprise workloads in Kubernetes clusters. Offload tedious and repetitive tasks involving security management, compliance management, deployment management and ongoing lifecycle management. 

Explore Red Hat OpenShift on IBM Cloud Start for free
Footnotes

All links reside outside ibm.com

Hybrid Cloud Market Report, IMARC Group, 2024