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How APAC organisations can embrace hybrid cloud

As cost pressures, data sovereignty rules and the rise of AI reshape IT priorities, we look at what organisations across Asia-Pacific can do to adopt the hybrid infrastructure model that places each workload in its optimal environment

For Singapore public transport operator SBS Transit, the use of hybrid cloud has been key to its digital transformation strategy. While the company deploys mission-critical applications on a private cloud, it is looking at leveraging public cloud for specific workloads that need to be scaled up and delivered more cost effectively.

Across Asia-Pacific (APAC), more organisations are warming up to hybrid cloud infrastructure. According to the 2025 Technology spending intentions study conducted by Informa TechTarget, only 15% of organisations in the region run more than half of their applications on the public cloud.

The study revealed a notable shift towards cloud repatriation, with just 28% of APAC organisations identifying as “cloud-first”. Instead of viewing the cloud as a single destination, companies now see it as a flexible operating model, selecting the right environment – be it public, private or on-premise infrastructure – for each specific workload.

Guna Chellappan, general manager for Singapore at Red Hat, attributes the adoption of hybrid cloud infrastructure to a mix of regulatory, business, and technological factors: “Governments and regulators are placing greater emphasis on data sovereignty, which requires sensitive workloads to remain within national boundaries. At the same time, organisations are modernising applications across diverse environments – from on-premise systems to multiple public clouds and edge deployments.

“The growth of data-intensive services is also pushing demand for scalable, flexible infrastructure. Together, these forces make hybrid cloud an attractive model, allowing organisations to comply with local regulations, maintain control of critical workloads, and still benefit from the innovation and elasticity of public cloud platforms,” he says.

Jay Tuseth, vice-president and general manager for APAC and Japan at Nutanix, notes that cost pressures, such as uncertainty around supplier pricing models, have also prompted organisations to seek alternatives, such as open source platforms that offer the flexibility to deploy workloads efficiently and at a lower cost across different environments without being tied to a proprietary ecosystem.

The Korea Coast Guard (KCG), for example, has reduced deployment times by 75% and achieved 30% cost savings by modernising its maritime operations for its mixed Linux environment comprising lightweight Kubernetes clusters on KCG vessels at the edge and SUSE’s Rancher Prime Kubernetes platform at its headquarters.

Other organisations pursuing hybrid cloud strategies include those in financial services, manufacturing and retail. Banks, for example, are turning to financial services clouds for real-time risk insights and region-specific compliance, while manufacturers are deploying industrial clouds to merge internet of things data with digital twins. Retailers are also using a hybrid cloud to connect customer data and personalisation capabilities.

Having the ability to move workloads and data seamlessly across different landing zones – whether on-premises, private cloud, or public cloud – is a critical lever for optimising costs in hybrid environments
Deepak Waghmare, Dell Technologies

“These are not just infrastructure shifts,” says Mohan Krishnan, vice-president and general manager for Hewlett Packard Enterprise (HPE) GreenLake and hybrid cloud offerings in APAC. “They are strategic moves that drive resilience, efficiency and competitive advantage across some of the region’s most critical industries.”

Perhaps the single biggest driver of hybrid cloud adoption is the rise of artificial intelligence (AI). According to IDC, a technology research firm, 75% of enterprise AI workloads in the APAC region will be deployed on hybrid infrastructure by 2027.

Nutanix’s latest Enterprise cloud index also revealed that nearly all organisations saw generative AI changing their priorities, with IT infrastructure ranked as the top area for new investments to support AI workloads.

Workload placement

When deciding which workloads and data are to be placed in a public cloud versus a private cloud or on-premise infrastructure, organisations must balance performance, governance and cost, according to Nutanix’s Tuseth.

Public cloud provides elasticity and scalability, making it ideal for highly variable or test-and-development workloads, while also helping businesses avoid large upfront capital expenditure. By contrast, workloads involving sensitive data are better suited for private cloud or on-premise environments where sovereignty and intellectual property can be more tightly controlled.

Latency is another consideration. Applications demanding real-time responses, such as AI-driven fraud detection or autonomous systems, often run best at the edge or on-premise to minimise delay. Less time-sensitive services, such as back-office applications, can be hosted in public clouds without performance risk.

“Ultimately, most enterprises are adopting a ‘cloud-smart’ approach: placing each workload in the environment best suited to its needs. This not only balances performance, security and compliance, but also provides organisations with the flexibility to adapt as their priorities evolve,” Tuseth says.

Cost and security management

A major challenge with operating hybrid cloud environments is the exponential growth of data, which can drive up costs. “Data creates real lock-in, and as it grows and becomes harder to move, the risk of cost overruns escalates,” says Deepak Waghmare, chief technology officer for APAC, Japan and Greater China at Dell Technologies.

Organisations can rein in costs by using management and monitoring platforms, tapping automation and orchestration and analysing placement of workloads to improve cost efficiency. They should also routinely evaluate the cost-performance balance of each workload – keep predictable, steady-state workloads on a private cloud or on-premise and use a public cloud for variable or seasonal demands.

“Having the ability to move workloads and data seamlessly across different landing zones – whether on-premise, private cloud or public cloud – is a critical lever for optimising costs in hybrid environments,” Waghmare says. “This allows organisations to dynamically respond to changing business demands, migrate workloads to more cost-effective platforms as needs shift and avoid the bill shock that often accompanies unchecked data growth.”

Achieving workload mobility, however, will require a unified operating model, where organisations manage both private and public clouds through a single platform and control plane using the same tools, processes and skills. This can help IT teams reduce operational overhead, streamline management and control costs more effectively, says Tuseth.

Another lever to manage costs in a hybrid cloud environment is licence portability. By shifting portable licences between on-premises infrastructure and public cloud environments, organisations can right-size their resources, avoid stranded assets, and maintain flexibility to respond to changing workload demands.

By investing in and learning a separate hybrid cloud stack, a CIO gains independence and flexibility beyond what one provider can offer
Guna Chellappan, Red Hat

The distributed nature of hybrid cloud can make security operations more complex and expand an organisation’s attack surface beyond traditional security perimeters. Again, having a unified operating model helps here – by harmonising security controls and processes, organisations can detect and respond to threats across environments to protect data and applications regardless of where the workloads are, says Waghmare.

More generally, HPE’s Krishnan advocates for the zero trust framework to secure hybrid cloud environments. “Never assume any user or device is trustworthy by default, and apply strict policies, encryption and continuous verification across every environment,” he says.

“Adding AI-driven monitoring strengthens this by detecting anomalies faster and helping to protect workloads wherever they reside. Equally important is operational consistency. Enterprises need tools that provide oversight across on-premise, edge and public cloud, so security policies are applied uniformly.”

Choosing a hybrid cloud platform

When evaluating hybrid cloud platforms, Tuseth advises CIOs to look for capabilities that drive innovation today and help them prepare for tomorrow’s technologies. This means enabling virtual machines and containers to run legacy and cloud-native apps side by side with consistent management across datacentres, edge locations and clouds.

HPE’s Krishnan notes that openness is also essential. Support for open-source tools and multicloud integrations will let enterprises innovate quickly and avoid being too dependent on a single supplier.

Organsations should also embrace open standards and maintain full observability of their entire stack. Ultimately, the chosen platforms must be highly interoperable with existing IT infrastructure, particularly the operating system and Kubernetes, so workloads can run seamlessly across on-premise and cloud systems.

In some cases, this can mean leveraging multiple providers, selecting different ones based on specific needs of individual teams or workloads, says Chellappan, adding: “This gives your team the ability to use the best services from multiple providers without having to rebuild or duplicate applications.”

In recent years, hyperscalers like Amazon Web Services (AWS) and Google Cloud have started developing hybrid cloud offerings such as AWS Outposts and Google Distributed Cloud. A SUSE APAC spokesperson notes that while such offerings may simplify things at the onset, they limit future options and can lead to higher long-term costs.

“In a scenario where you have a mix of multicloud providers and on-premises servers, hybrid cloud is the one sure way to gain flexibility, choice and vendor neutrality,” she says. “A hybrid approach, built on a foundation of open source, allows organisations to select the best-of-breed services from different providers for specific workloads, rather than being forced to use a potentially suboptimal service from their primary vendor.”

Chellappan adds that while hybrid cloud offerings from hyperscalers extend the public cloud experience into the datacentre, they are essentially “limited extensions” of a single provider’s ecosystem. This means the control plane, application programming interfaces, and operational tools are tightly coupled with a specific supplier.

“By investing in and learning a separate hybrid cloud stack, a CIO gains independence and flexibility beyond what one provider can offer,” he says. “Such a stack reduces the risk of vendor lock-in by allowing workloads to move more easily between on-premises systems and multiple clouds. It also provides a more neutral foundation for organisations with regulatory, latency or data sovereignty requirements that demand certain workloads remain on-premise or span different clouds.”

Skills gap and culture

HPE’s Krishnan notes that technology alone doesn’t make a hybrid cloud implementation successful. Organisations also need the right people and processes, and they don’t always have the appropriate talent or culture to navigate the technological, economic and operating model changes involved in moving to the cloud.

“Many of them still run a mix of traditional IT and cloud-native workloads, and the skill sets to manage them can be very different. Teams often struggle to bridge gaps in areas like automation, DevOps practices and data governance,” he adds.

To overcome these challenges, IT operations and development teams will need to break down organisational silos and embrace a DevOps culture, one that fosters closer collaboration, automates workflows and encourages continuous learning and knowledge sharing.

Krishnan calls for closer collaboration between IT, development, and business leaders, not just technical expertise, for hybrid cloud initiatives to succeed.

“When organisations move from a siloed, system-centric approach to a collaborative, agile operating model, they set the foundation for real transformation,” he says. “Leadership also plays a role by promoting a culture of experimentation, where teams feel empowered to innovate and learn from setbacks.”

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