Turn insight into action

We help you solve the problems that matter most so you can act faster and move further.

Tech Translated

Hybrid cloud and multicloud

Article

The definition

What are hybrid cloud and multicloud?

Hybrid cloud and multicloud are two strategies for managing digital and IT infrastructure that involve a mix of on-premises (also called “private cloud”) and off-premises compute and storage resources. A hybrid cloud combines public cloud services (such as Amazon Web Services or Microsoft Azure) with private cloud infrastructure.

The goal of a hybrid approach is to take advantage of the scalability and flexibility of public cloud services for certain workloads, while keeping sensitive data and critical systems on-premises, and optimising costs across both environments.

Multicloud, on the other hand, is a strategy that involves using multiple public cloud providers for different workloads or applications. The rationale is to avoid vendor lock-in and take advantage of the unique strengths of each provider.

The details

What business problems can hybrid cloud and multicloud address?

Hybrid and multicloud strategies address several challenges. “Most importantly, they provide flexibility and choice,” says Scott Petry, a cloud and digital services principal with PwC US. “They allow businesses to select the best cloud solution for each workload or application.”

Firms in highly regulated sectors like financial services, healthcare, and government may have to keep certain data on-premises but still want to move less sensitive material to the public cloud: a hybrid approach. A multicloud environment allows data and workloads to migrate as needed, supporting data portability and data modernisation while reducing dependence on any one cloud provider.

Hybrid and multicloud can also support “edge computing” by moving data and workloads closer to the physical locations where it is used. This can be especially useful in sectors such as advanced manufacturing, in which speed and latency considerations are critical. More broadly, privacy-conscious users—whether consumers or companies—may prefer not to share certain data to external locations.

How do hybrid cloud and multicloud create value?

By providing flexible, vendor-neutral infrastructure, hybrid cloud and multicloud strategies empower organisations to rapidly deploy compute resources, experiment with new technologies, and scale as needed. They can reduce the expense of purchasing and maintaining compute servers they may not always need, without limiting capacity during peaks. “For example,” says Petry, “a company might use a public cloud for an experimental project requiring high scalability, while keeping core business systems on a private cloud for security reasons. As the project grows, resources can be added to or removed from the cloud without disrupting operations.”

Such flexible strategies are increasing competition among cloud providers, which may help drive innovation, product differentiation, and price competitiveness. But, even as a multicloud approach eliminates dependence on any one cloud provider, it also reduces negotiating power because a company’s commitment to each vendor is smaller.

Other potential downsides include greater operational complexity and a new requirement to move data between clouds for different types of processing. Following a rise in cloud-related cyber-attacks in recent years, security should also be factored into the decision.

Who should be paying attention to hybrid cloud and multicloud?

These strategies can work across sectors and business units but require coordination and oversight to prevent unnecessary proliferation of cloud service providers. CIOs, CTOs, CFOs, CISOs, and COOs should be working together to define the most appropriate mix and to optimise cost.

How can business prepare for hybrid cloud and multicloud?

Many organisations already have de facto hybrid or multicloud architectures. The key strategic and tactical decisions relate to selecting the right mix of providers, effective pricing negotiations, and allocating tasks and workloads to the most appropriate public or private cloud. For most organisations, the challenge is no longer cloud migration but effective cloud modernisation.

The bottom line

Hybrid cloud and multicloud combine private, public, and multiple cloud platforms to balance flexibility, cost, and control. It enables workload portability, risk mitigation, and innovation while requiring governance, interoperability, and strong security frameworks.