What is a Hybrid Cloud?

Last updated: 10/05/2026

A hybrid cloud is a mixed computing environment where applications are run using a combination of computing, storage, and services in different environments—public clouds and private clouds, as well as traditional on-premises data centers or “edge” locations. Hybrid cloud computing approaches are widespread because almost no one today relies entirely on a single public cloud. 

Hybrid cloud environments allow you you to continue using on-premises services while taking advantage of the flexible options for storing and accessing data and applications offered by public cloud providers. This helps you create versatile setups based on your specific business needs. Many organizations choose to adopt hybrid cloud platforms to help reduce costs, minimize risk, and extend their existing capabilities to support digital transformation efforts.

A hybrid cloud approach is one of the most common infrastructure setups today. Cloud migrations often naturally lead to hybrid cloud implementations as organizations often have to transition applications and data slowly and systematically. Hybrid cloud environments allow you to continue using on-premises services while taking advantage of the flexible options for storing and accessing data and applications offered by public cloud providers.

Hybrid cloud defined

Hybrid cloud solutions include applications, or their components such as compute, networking, and storage, when deployed across public and private clouds. On-premises servers are also often referred to as private clouds.

Hybrid cloud examples

The most common hybrid cloud example is to use public cloud with private cloud services and on-premises infrastructure. However, there’s no one hybrid cloud configuration or one-size-fits-all architecture. 

A hybrid cloud could combine a public cloud and a private cloud running on-premises or on the edge. It could also combine a public cloud with another public cloud (also known as multicloud). 

Hybrid models allow an organization to mix and match environments and to choose what works best for the specific applications and data. For instance, hybrid solutions are popular with companies in highly regulated industries that have strict data privacy requirements for how they store, process, and interact with their data.

Another common example is adopting a hybrid cloud approach to scale capacity dynamically when computing or processing demands exceed a data center’s capabilities. Many cloud migration projects inevitably lead to hybrid cloud deployments as workloads and applications are slowly and strategically shifted over to the cloud. 

Is hybrid cloud the same as multicloud?

While these terms are often used interchangeably, they are different. A hybrid cloud features interconnected public and private clouds working together, sharing data and processes to perform the same task. On the other side, multicloud approaches use services from more than one public cloud to perform various tasks, regardless of where they are hosted. Organizations that do not want to depend on a single cloud provider may choose to use resources from several providers to get the benefits from each unique service. 

A hybrid cloud approach can also be considered multicloud if it includes resources from a private cloud and resources from at least two public cloud service providers. In other words, multicloud setups include hybrid cloud setups but a hybrid cloud is not automatically considered multicloud.

How does a hybrid cloud work?

Hybrid clouds work by combining the resources and services from two or more separate computing environments. Hybrid cloud architectures require integration, orchestration, and coordination so you can share, shift, and synchronize information quickly. 

Strong hybrid cloud networking is critical for a hybrid cloud deployment to function correctly. Interconnectivity between environments is typically established using a local area network (LAN), wide area network (WAN), virtual private network (VPN), and application programming interfaces (APIs).

Similar to other cloud computing architectures, hybrid cloud platforms leverage virtualization, containerization, and software-defined networking and storage technologies to abstract and aggregate resources. Dedicated management software allows organizations to allocate resources and enable on-demand provisioning to different environments. 

Hybrid cloud networking

Strong networking is critical for a hybrid cloud deployment to function correctly. The network bridges your on-premises infrastructure and your cloud resources, allowing data and applications to move fluidly and securely. To integrate these diverse environments, IT professionals use several technical networking mechanisms:

  • Virtual private networks (VPNs): VPNs create a secure, encrypted tunnel over the public internet. They offer a cost-effective way to connect a local network to a cloud provider, though performance can fluctuate based on general internet traffic.
  • Private interconnects: For organizations that need high reliability and low latency, dedicated connections bypass the public internet entirely. These rely on direct, physical fiber connections between a local data center and the cloud provider's network.
  • Software-defined wide area networking (SD-WAN): SD-WAN technology intelligently manages traffic across multiple connection types. It monitors network health and automatically routes data through the fastest, most reliable path available at any given moment.
  • Dynamic routing: Technologies like Border Gateway Protocol (BGP) help networks share routing information automatically. This ensures data finds the most efficient path between on-premises servers and public cloud instances without requiring manual updates from network engineers.
  • Network security and segmentation: Because hybrid clouds span multiple environments, strict security controls are necessary. Teams use cloud-native firewalls and network segmentation to isolate critical workloads, which helps ensure that an issue in one environment does not easily spread to another.
  • Network visibility and hybrid cloud observability: Maintaining visibility across disparate environments is a primary challenge in hybrid setups. Teams often rely on tools that provide end-to-end cross-cloud observability and hybrid cloud observability to monitor traffic flows and diagnose issues. Leveraging Cloud Network Insights can help identify bottlenecks, optimize routing, and verify network health across the entire hybrid architecture.

What is a hybrid cloud approach used for?

A hybrid cloud approach is a good fit for you if you want to take advantage of the scale and security of a public cloud. While keeping your data on-premises to comply with data residency laws or supporting computing needs closer to your customers. For critical systems operating in private and public clouds, hybrid computing is a highly effective option.

Here are just a few examples of the benefits of adopting a hybrid cloud:

  • Modernize at your own pace: With a hybrid cloud you can migrate applications to the cloud at the pace that makes sense for your business and transform your technical infrastructure over time.
  • Maintain regulatory compliance: Many industries have rules regarding where an app can operate. Hybrid configurations can help you use private and public clouds while adhering to strict regulatory requirements.
  • Running apps on-premises: You may have regulated applications that need to remain on-premises or mainframe systems that are difficult to move to the cloud. 
  • Run apps at remote edge locations: If you are operating in industries that demand edge computing for low latency, such as kiosks in retail or in telecom networks, a hybrid approach lets you run select apps at the edge.

Hybrid cloud solutions

Today, IT teams are looking to architect hybrid cloud environments that use the same technology stacks to keep pace with the adoption of cloud-native technologies, microservices, container-based architecture, and infrastructure as code. 

Over time, hybrid cloud solutions have become less focused on interconnectivity between locations and increasingly shifted towards workload portability and automated deployment to the optimal environment for a specific business use case. 

Therefore, we recommend evulating hybrid cloud platforms based on what they do, rather than solely in terms of location and ownership. 

A hybrid cloud solution should: 

  • Consolidate IT resources, services, and functionality
  • Automate scale-out and provisioning
  • Move workloads freely between environments 
  • Orchestrate processes and provide unified management
  • Automate deployment of applications in private clouds and public clouds, and edge locations 

What are hybrid cloud benefits?

Effective application governance

A hybrid approach allows you to decide where your application sits and where computing happens. This can help improve privacy and ensure compliance for your regulated applications.

Improved performance and reduced latency

Sometimes, distributed apps at remote locations benefit from a hybrid cloud solution. For applications with low latency requirements, hybrid computing happens close to the end users.

 Flexible operations

Hybrid computing gives you the flexibility to operate in the environment that works best for your team. For example, by building with containers, you can create portable applications and easily move between public and private clouds. 

 Improved ROI

By adding a public cloud provider to your existing on-premises infrastructure, you can expand your cloud computing capacity without increasing your physical data center expenses. 

Faster innovation

Hybrid cloud models provide access to the latest technologies like AI and machine learning without requiring you to replace your existing infrastructure. You can maximize resources and increase productivity to speed up the development and delivery of apps. 

Hybrid cloud disadvantages

While hybrid cloud deployments offer many advantages, it may not be the right fit for your organization.

Because hybrid cloud models include the use of private cloud and on-premises infrastructure, you still have to invest and maintain in-house hardware, along with any additional software and tools needed. Hybrid cloud adoption also requires new technical expertise from both IT teams and business users. 

Hybrid cloud environments can be complex. It can be difficult to establish visibility into all the systems, applications, platforms, and processes contained in your network, which can cause you to miss critical issues or opportunities. In addition, on-premises and public cloud environments are not always compatible, making it difficult to synchronize transmission of data. 

That’s why it’s important to carefully assess whether the benefits of cloud match with your specific priorities, budget, and the skills of your team. It’s also important to evaluate cloud vendors and tools that support open platforms and provide hybrid cloud management capabilities.

How to set up a hybrid cloud

Workloads, infrastructure, and processes are unique. As a result, your hybrid cloud strategy will ultimately be defined around your business requirements. What works for one organization may not work for you. 

When you build your hybrid cloud strategy, you will need to create a plan to: 

  • Define your vision: Create a vision statement that evaluates your current approach and environments to help you define what you want to optimize and how a hybrid cloud deployment will enable you to reach your goals. 
  • Assess workloads. Decide the workloads that will run in or migrate to each environment. Where workloads run can have a huge impact on the success of your strategy. Putting a workload in the right place can make it more efficient, while the wrong one can complicate your deployment. 
  • Identify patterns: After you prioritize your workloads, you can evaluate which architecture patterns best match your requirements. Although your workloads are unique, there are common hybrid cloud architecture patterns you can use to help you make the most of your environments. 
  • Choose technology and network topology: Once you have decided on the architecture patterns for your workloads, choose which common network topologies and technologies will allow you to connect your environments in a secure and reliable manner. 

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