A hybrid cloud is a computing model that connects on-premises infrastructure with private and public cloud services, allowing data and applications to move seamlessly between environments.

Hybrid cloud is part of cloud computing — which delivers services like processing power and storage over the internet. Unlike standalone public or private clouds, a hybrid approach unifies them to balance flexibility, control, and scalability.

Enterprises implement hybrid cloud by integrating internal systems with external platforms through secure connectivity and governance frameworks. For example, a bank may keep transaction systems on-premises for compliance while running risk models in the public cloud — enabling both regulatory alignment and elastic compute capacity.

How do hybrid clouds work? 

Hybrid clouds operate through systems that keep on-premises, private, and public environments connected. The components below explain how these mechanisms function in enterprise settings.

Integrating public and private clouds

Hybrid environments combine public cloud services with private infrastructure, enabling data and applications to shift between them based on business needs. For example, a healthcare provider may store patient records on a private cloud for compliance, while using a public cloud for data analytics.

Ensuring seamless communication with APIs

Cloud APIs enable different systems to communicate and exchange data. Hybrid setups depend on compatibility with major API standards — such as those from AWS and Azure — to connect cloud and on-premises environments without service disruption.

Managing data transfer and sync

Organizations regularly copy or migrate data across environments to support applications like analytics and enterprise search — which requires access to up-to-date content from multiple systems. Companies often automate these transfers, duplicating data from on-premises servers to cloud storage. In financial services, frequent backups help ensure transaction records can be recovered after a system failure.

Orchestrating workloads in hybrid setups

Workload orchestration tools determine where applications run — on-premises or in the cloud — based on performance, cost, or compliance needs. A hospital might host records locally while using the cloud for appointment scheduling. These tools operate within an orchestration layer that manages deployment and scaling across environments.

Scaling and optimizing resources

During demand spikes, enterprises can scale up using public cloud resources. Retailers, for example, may provision extra cloud servers during peak shopping periods without expanding private infrastructure — optimizing cost and performance as needed.

What is a hybrid cloud approach used for?

Hybrid cloud adoption is accelerating among enterprises that want control over critical infrastructure while retaining the ability to scale resources as needed.

Below are examples of how healthcare, retail, and financial services apply hybrid cloud models to support core operations.

Telehealth services integration

Many healthcare providers deliver telehealth services using hybrid cloud environments. This approach enables secure handling of patient data while leveraging flexible computing resources. 

Providers can store electronic health records and run privacy-sensitive models in private infrastructure — often referred to as private AI — to meet regulatory requirements, while using the public cloud for video consultations or scalable AI diagnostics. This ensures data protection without compromising real-time performance.

Seasonal demand scaling through cloud bursting

Retailers use hybrid cloud to manage demand surges during holidays or promotional events. Core workloads remain in private environments, while overflow traffic is redirected to public cloud resources — a model known as cloud bursting. This helps businesses handle spikes in user activity without overinvesting in permanent infrastructure that sits idle during slower periods.

Compliance-driven data storage and backup

Financial institutions use hybrid cloud environments alongside privacy-enhancing technologies (PETs) to protect sensitive data while maintaining compliance. 

Archival data may reside in private cloud systems within designated jurisdictions, while public cloud services support backup and recovery. This setup improves resilience and ensures continuity without violating regulatory constraints.

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