Hybrid multicloud has become the preferred IT operating model for most global enterprises. This approach brings compelling business benefits, from improved cost control and security to high levels of scalability and flexibility needed to operate in dynamic business environments. It’s also brought demand for new strategies and approaches to managing infrastructure.
Over 90% of IT decision makers use more than one public cloud service and 82% reported using hybrid cloud environments in their organizations, according to Cisco’s 2022 Global Hybrid Cloud Trends Report.
According to the 2024 Nutanix Enterprise Cloud Index Report, this strategy is only growing in prevalence two years later. Hybrid multicloud is becoming the industry standard – 90% of respondents say they’re taking a “cloud smart” approach by leveraging the best environment for each of their applications, and 80% believe hybrid cloud environments are best for managing their applications and data.
Having the in-house IT know-how to evolve hybrid multicloud operations is essential for supporting the enormous growth in applications and data that a business must continuously manage, but it can be challenging.
ECI respondents indicated that managing a growing number of databases is one of their top challenges, and for most, their hybrid multicloud environments are not fully interoperable. There is a real need for a single, unified place where enterprises can manage their applications and data across clouds.
To achieve this, it’s critical to first understand the components of hybrid multicloud and how a unified infrastructure management solution can maximize performance and value potential.
What Is a Hybrid Multicloud Model?
Hybrid multicloud orchestrates the combined resources of on-premise private cloud systems, and/or multiple public cloud services. They connect on-premise data centers to various hosted and public cloud services, such as edge devices and third-party services.
In a business environment where remote connection and anywhere accessibility is becoming a must-have for a multitude of reasons, hybrid multicloud is an ideal solution that supports remote connectivity and accessibility without forcing organizations to abandon their critical on-premise infrastructure.
Further, hybrid multicloud offers the flexibility and scalability modern businesses need, allowing them to leverage cloud resources for broader access and enhanced capabilities while maintaining control over sensitive operations and data by keeping them on-premises. It blends the security and reliability of on-premises systems with the agility of the cloud.
These are top priorities both for IT decision makers and business executives leading companies from the top.
“Hybrid multicloud environments give modern, digital enterprises a wide variety of cost/billing and deployment options for their data and applications, allowing them to optimize spending and application performance, while also accelerating time to market for complex IT infrastructure solutions,” according to the Nutanix ECI report.
“These benefits are a large part of the reason why the ability to flexibly run solutions across clouds and on-premises (i.e., hybrid) was ranked as the #1 driver of infrastructure choice for IT decision makers notably above performance and security.”
Components of a Hybrid Multicloud Model
Hybrid cloud deployments consist of three principal components:
A Public Infrastructure-as-a-Service (IaaS) Platform: The most commonly-used IaaS providers are AWS, Microsoft Azure, and Google Cloud Platform.
Private Cloud Computing Resources: These come from an on-premise data center in most cases.
A High-Performance Network Connection: Wide area or dedicated network services, which need to monitor network performance and uptime against guarantees of SLAs.
Hybrid Cloud Platforming and Integration
Hybrid clouds enable a near-infinite number of deployment configurations. However, cloud architects must settle on two fundamental design considerations in any deployment: Platforming and Integration.
Hybrid multicloud operations require a layer of virtualization, also called a hypervisor, to support and abstract virtual machines, containerized workloads, and hyperconverged infrastructure (HCI) to make resources available across the environment. The hypervisor works with a private cloud software layer like OpenStack.
Alternatively, cloud architects can opt for specialized public cloud service platforms that extend public clouds into private data centers. This arrangement locates the entire system on the same software stack.
Typically, such services incorporate container orchestration technologies such as Kubernetes. Popular choices include AWS Outposts, Google Anthos, and Azure Stack.
Organizations that employ public cloud services lose direct control over their architecture and monitoring. Making this arrangement work in hybrid environments requires advanced adjustments to private cloud systems to achieve compatibility with cloud service providers' APIs and service structures.
In effect, hybrid cloud models need hardware interoperability to function effectively. Hardware considerations include storage and server devices, networking equipment, and load balancers.
Beyond hardware configurations, front-end applications can be hosted in the cloud or pool private data centers and cloud resources in unified elastic pools. The right approach depends on overall environment requirements, how use cases match the integration style, and what available technologies address organization-specific needs.
By mastering the complexities of platforming and integration, organizations can ensure that their infrastructure both supports current needs and is poised for future expansion and innovation. Ultimately, the success of a hybrid multicloud strategy hinges on the ability to effectively manage these technologies so they work cohesively to meet the enterprise's strategic goals.
The Case for Centralized Hybrid Multicloud Management
The benefits of hybrid multicloud are undeniable, offering enterprises unparalleled flexibility to optimize their IT infrastructure for cost, performance, and security. That said, managing the complexities of a hybrid multicloud environment comes with significant challenges, especially for IT teams not yet seasoned in coordinating diverse cloud platforms.
Challenges often include navigating the distinct operational models of different cloud providers, handling security across varied environments, and ensuring consistent data management and application performance across all platforms.
This requires strong interoperability, something the Nutanix ECI report found is still lacking even for organizations that have already adopted hybrid multicloud – 51% of respondents said their environments are not fully interoperable. The percentage was even higher (76%) for large organizations with 5000+ employees.
“Clearly, delivering hybrid multicloud interoperability is no easy task,” the report states, “and for many organizations will be an ongoing initiative that requires support from IT infrastructure partners and service providers. However, achieving and maintaining higher levels of interoperability should remain a top priority for any organization serious about implementing a long-term hybrid multicloud strategy.”
To do this, enterprises are implementing centralized hybrid multicloud management platforms, which offer a range of important benefits that maximize value of IT infrastructure investments:
Simplified Operations: Centralized management tools streamline the complexity of handling multiple cloud services and on-premise resources, providing a unified interface that reduces administrative burden and learning curves. This centralization allows IT teams to manage all resources from a single point, significantly reducing the risk of oversight errors and inefficiencies.
Enhanced Security and Compliance: Maintaining a robust security posture and ensuring compliance can become complicated with various platforms involved. Centralized management systems standardize security policies and compliance protocols across all environments, making protecting data and meeting regulatory requirements easier without configuring each platform individually.
Improved Resource Utilization: Centralized management enables better capacity planning and resource allocation by offering a holistic view of all resources. IT managers can make informed decisions about where to run specific workloads based on performance data and cost considerations, ensuring optimal use of resources across the cloud and on-premises setups.
Strategic Decision Making: Centralized visibility into all hybrid multicloud components allows organizations to comprehensively analyze performance metrics and operational data. This insight supports more strategic IT planning, helping enterprises align their IT capabilities directly with business goals and rapidly adapt to changing market conditions.
While hybrid multicloud environments benefit businesses, they also introduce complexities hindering operational efficiency and strategic agility. Centralized management is essential in mitigating these challenges, enabling businesses to harness the full potential of their IT investments and turn technology into a driver of business success.
The Future of Hybrid Multicloud
As hybrid multicloud continues to grow as a central force behind enterprise digital transformation and IT strategy, it will be driven by new technologies and shifting demands. AI and machine learning are now crucial for optimizing resource management and enhancing predictive analytics across cloud platforms.
AI tools streamline operations and can preemptively address system vulnerabilities and inefficiencies before they impact performance.
At the same time, edge computing is redefining data processing by bringing it closer to the data source, which is essential for industries like manufacturing and autonomous driving that rely on real-time decisions. Edge technology complements hybrid multicloud by minimizing latency and maximizing the efficiency of real-time data applications.
Additionally, the rise of serverless computing is simplifying the IT landscape, allowing developers to focus on building applications without the overhead of managing servers, thereby supporting the scalability and agility that hybrid multicloud environments promise.
On the adoption front, industries increasingly turn to hybrid multicloud solutions to meet their specific needs, whether for enhancing flexibility, ensuring compliance, or driving innovation. For example, the financial, healthcare, and retail sectors are leveraging these environments to secure sensitive data, streamline operations, and enhance customer experiences.
"Globally, the majority of organizations expect to rely on interconnected, hybrid, and multicloud strategies for digital infrastructure in the coming years," said Mary Johnston Turner, research vice president at Future of Digital Infrastructure Agenda at IDC.
“Workload deployment decisions continue to be fine-tuned to the needs of specific workloads and use cases.”
Across industries, IT sustainability is another key driver of hybrid multicloud adoption. The Nutanix ECI survey found that 77% of organizations plan to increase investment in sustainability efforts and technologies in 2024.
Hybrid multicloud supports these initiatives by helping businesses optimize their resource use and reduce reliance on physical infrastructure, thus decreasing energy consumption and carbon footprints. This enhances overall sustainability profiles for organizations, an important factor for business reputation today.
However, managing complex hybrid multicloud environments can be daunting without the right tools. Centralized management platforms will continue to prove indispensable, offering a unified view and control over disparate cloud resources tp drive smarter strategy.
These platforms facilitate easier compliance and security management and ensure that resources are used efficiently, aligning IT operations with strategic business goals. As we look to 2024 and beyond, the role of these management tools will become even more critical as businesses seek to navigate the complexities of their digital ecosystems and harness the full potential of their technology investments.
This is an updated article originally published June 15, 2023.
Michael Brenner is a keynote speaker, author and CEO of Marketing Insider Group. Michael has written hundreds of articles on sites such as Forbes, Entrepreneur Magazine, and The Guardian and he speaks at dozens of leadership conferences each year covering topics such as marketing, leadership, technology, and business strategy.
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