What Is Enterprise Hybrid Cloud Architecture?

10 min read
4 October 2022
Beatričė Raščiūtė

Discover the benefits of the hybrid cloud infrastructure and the ways to make it even more efficient.

Three clouds representing private, public and hybrid cloud options.

Enterprise hybrid cloud architecture is a combination of public and private clouds that simplifies the management of companies’ IT resources. The hybrid cloud approach is getting increasingly popular. In fact, the global hybrid cloud market is expected to reach 145 billion US dollars in 2026. But what is an enterprise hybrid cloud exactly, and how does it work? 

In this article, we discuss what hybrid cloud infrastructure is and what value this solution can bring to businesses worldwide. What if you have already employed a hybrid cloud model but lack Internet Protocol addresses (i.e., IP addresses or simply IPs) for your business? Keep reading to learn what the most cost-efficient and sustainable solution to expand your hybrid cloud is.

Key takeaways

  • Hybrid clouds combine public and private cloud environments to provide agility and scalability to companies’ networks and operations.
  • Companies can utilize hybrid cloud environments to manage data and resources more efficiently.
  • With a successful hybrid cloud strategy in place, infrastructure deployment may be quicker and cheaper.
  • The scarcity of IPv4 addresses hinders the growth of hybrid cloud providers and business users alike.
  • IPv4 leasing is a cost-efficient and quick solution that allows companies to acquire assets they need for their growth.

Hybrid cloud infrastructure explained

A hybrid cloud is an IT infrastructure that combines different computing, storage and cloud services environments. More specifically, this infrastructure combines the services of two cloud models: public cloud and private cloud. Why may companies need to implement a hybrid cloud environment? The major objective is to create a single automated computing environment that offers flexibility and scalability to the company’s operations.

Let’s say several applications require more data storage, and the cloud has greater capacity than a single private data center located on the company’s premises. In that case, the company has the option to move the resources and scale operations using off-site data centers of another provider. This allows the distribution of the workload and makes data management more efficient.

Hybrid cloud computing combines multiple environments to ensure efficient data exchange. This interconnectivity is achieved through data virtualization, which allows business users to view and manage all enterprise data from multiple systems in one place

Not surprisingly, the most popular hybrid cloud example combines public and private cloud environments. The company can utilize an on-premises data center, and a public cloud computing environment, like the Google Cloud platform. This option can help companies scale their business operations while using diverse services for different purposes.

There are three types of cloud computing services:

A pyramid representing three different cloud computing services - SaaS, PaaS, IaaS.
Cloud computing services

Companies can complement their private cloud solution with these cloud storage and cloud-based applications to ensure more flexibility within their systems. Let’s discuss private and public cloud services in greater detail.

Private cloud

A private cloud, also known as internal or corporate cloud, is intended for the needs of a single organization. Usually, companies develop their own private cloud platforms and dedicated infrastructure, like virtual servers, which allows them to have complete control of the cloud environment. That said, they need to invest in hardware and software and establish their own IT department to take care of cloud management.

Companies can also host private clouds on-premises, in private data centers. Alternatively, they can use the data centers of an independent cloud provider. If the company chooses an independent data center, it can dedicate part or all management operations to the chosen provider, depending on its needs.

If businesses decide to have their on-premises infrastructure, they can choose the devices and software they prefer and customize them however they choose to without needing a third-party provider’s solutions. Most importantly, the organization can use all hardware without sharing it with anyone else, which makes the environment more secure.

Benefits and limitations of a private cloud

All companies can take advantage of the private cloud model and unlock several significant benefits: 

  • Improved privacy and data security
  • Complete control of resources
  • Legal and regulatory compliance
Three benefits of private cloud.
The benefits of private cloud

One significant benefit of this cloud model is a higher data security and privacy level that firewalls and internal hosting can provide. Effective security measures and private data centers ensure that third parties will not be able to access companies’ sensitive data.

And the best thing is that companies can fully control their infrastructure and resources. Companies can maintain and update their software and hardware as needed to ensure the efficiency of their networks and operations. 

Moreover, if businesses need to comply with international security standards, it is easier to ensure regulatory compliance with the use of a private cloud. With this cloud model, companies can implement stricter requirements and maintain greater control over their customers and business data security.

The greatest disadvantage of the private cloud is the higher price. Purchasing and installing new hardware and software requires additional expenses. Also, a bigger infrastructure might require more dedicated employees and extra time for maintenance.

Public cloud

A public cloud is a third-party service that anyone can purchase. Cloud providers can offer public cloud services to multiple private users, organizations or companies. Some of the most popular public cloud providers include such hyperscalers as Microsoft Azure and Google Cloud.

In terms of infrastructure, a public cloud provider hosts its own servers and provides its customers remote access to services. Also, cloud providers are completely responsible for all hardware and infrastructure maintenance. This means they can ensure quick and efficient availability of data and applications.

Public cloud services frequently include many different components, like virtual machines (VM) and sophisticated software applications, to cater to the needs of different companies. Customers can access these services for free or according to subscription-based or pay-as-you-go models.

Benefits and limitations of a public cloud

Public clouds can bring significant advantages to any company that needs to scale its networks and bring cloud computing to a higher level:

  • Cheaper infrastructure
  • Greater scalability
  • Availability of high-end tools
Three benefits of public cloud.
The benefits of public cloud

First and foremost, a public cloud solution can be a more cost-efficient option for companies that do not have the resources to host their infrastructure and spend money on hardware and software. Also, companies can deploy a public cloud faster to unlock almost endless scaling possibilities according to the business needs.

Moreover, a public cloud is a great choice for companies wishing to use the latest tools and software that cloud providers constantly update and maintain. And the best thing is that companies do not need to worry about the management of public cloud applications.

The downside of the public cloud is that the cloud service provider is responsible for all the maintenance and troubleshooting of the system. Why is that a problem? Customers may become dependent on the efficiency of public cloud providers and may not have much control over the cloud infrastructure. For example, if something crashes and the network goes down, the lack of control may negatively affect the company’s operations if issues aren’t solved promptly.

Furthermore, a public cloud environment may raise security concerns for the company that stores a lot of sensitive data. In case of a data breach, the company may lose important financial and operational information. Therefore, choosing reputable public cloud providers that invest in proper security measures and comply with security standards and regulations is important.

Hybrid cloud example and benefits

A hybrid cloud is a cloud computing environment that combines private and public cloud environments to expand the storage and computing power of any company. The most popular hybrid cloud examples include Azure Stack, Google Anthos and VMware Cloud on AWS.

Companies can unlock significant benefits if they choose hybrid cloud solutions for their business operations. The most significant benefits include:

  • Decreased expenses
  • Remote work support
  • Increased security and risk management
  • Opportunities for growth and development
Four benefits of hybrid cloud.
The benefits of hybrid cloud

Decreased expenses

A hybrid cloud solution is a great option for companies that want to scale on demand while saving money. How exactly can they achieve this?

Companies can keep business-critical data and applications on the private cloud while moving less sensitive information and processes to public clouds. Public cloud providers are responsible for enterprise cloud management on the company’s behalf. In turn, companies can devote their precious time to other crucial business ventures.

Moving part of the infrastructure to public cloud environments means fewer expenses for the management of on-premises resources. As a result, companies can scale on demand quickly and pay only for the computing resources they use. Also, if they no longer need certain applications, they can stop using the services and optimize cost savings at any time.

Remote work support

One more advantage to hybrid clouds is that they provide access to on-demand cloud resources anytime and anywhere. This can help ensure efficient access management to different employees. With easy remote access, employees can reach the needed cloud resources from anywhere, including an office or a home.

As the work-life balance is becoming increasingly important for more and more people, many choose to work from home. Companies can employ a hybrid cloud environment to help increase the well-being and productivity of their employees. That, in turn, can increase the efficiency of business operations altogether.

In fact, if companies provide flexible and accessible computing environments for people globally, they might attract top talent. In return, if a company employs top experts, it can optimize productivity across the organization while increasing revenue in the long run.

Increased security and risk management

The hybrid cloud allows companies to take better control of the data security and reduce possible exposure of sensitive data. How? Companies can implement the hybrid cloud strategy and decide what information should be in private and public clouds according to security or compliance requirements. In case of software or hardware failure within the public cloud, this would ensure that data in private clouds remains safe.

Of course, like every internet-connected technology, hybrid clouds are not 100% protected against external threats, like cyberattacks. Therefore, public cloud providers must employ proper security measures, such as encryption and endpoint security, to manage risks effectively.

Disaster recovery is another solution that offers an additional layer of security to the company’s cloud resources. Even though this capability requires thorough planning, it ensures high data security and business continuity. In case of failure, you can be sure you will not lose your important data.

Two servers on fire with warning signs around them.
Disaster recovery is essential for a healthy cloud environment

Opportunities for growth and development

The hybrid cloud solution enables companies to scale on demand according to the changing business needs and quickly adapt to the demand for their services accordingly. The ability to respond quickly to market dynamics ensures that the company can stay ahead of its competition. That can increase the number of customers and revenue in the long term.

Furthermore, companies can employ the latest technologies, for example, software-as-a-service or infrastructure-as-a-service, without utilizing their on-premises infrastructure. Also, they can easily integrate new tools into the existing enterprise applications without installing or updating the private cloud infrastructure.

Ultimately, if companies build a hybrid cloud strategy, they can take a step towards the digital transformation of their networks and operations. More specifically, a hybrid cloud model can help modernize applications and enhance interactions with customers.

The demand for IP addresses for hybrid cloud

IP addresses are crucial for the successful development and operation of companies’ hybrid cloud infrastructures. Why?

Every enterprise computing device, or an endpoint, has an IP address. The endpoints that have IP addresses can be servers, routers, computers, switches and other wired or wireless devices. If companies have a lot of resources to manage, they may use an IP address management system (IPAM) to handle all IP addressing efficiently.

Unfortunately, in some cases, companies may not have enough IP addresses for the development of their networks. Why? Due to the exhaustion of IPv4 addresses, companies may have difficulty obtaining the necessary resources for their business operations. 

According to Edvinas Bakanas, Senior Product Manager at IPXO, the issue of IPv4 availability becomes especially notable when setting up a VPC (virtual private cloud). To set up a VPC, you may need lots of IPs to build production, staging and testing environments. 

Public cloud providers can offer IPs that cost $2-$4 per a single IP. On the flip side, you can lease IPs for just $0.40-$0.50 per IP. On top of that, when you lease, you have the flexibility to choose IPs from any RIR and any geolocation.
Edvinas Bakanas
Senior Product Manager, IPXO

Another great benefit that IP leasing offers is access to a dedicated pool of IP addresses. That means that once you lease the resources you require, you do not need to worry about your IPs suddenly changing, which can happen if you acquire them from public cloud providers. That ensures stability for the entire hybrid cloud infrastructure. 

Of course, companies can also buy IP resources, but the prices are high, and they will only get higher. Unsurprisingly, IP leasing is an alternative solution that companies have begun to apply more vigorously to establish cloud environments quickly and cost-efficiently.

IP leasing – towards more efficient hybrid clouds

If your company needs IP resources to develop a private or hybrid cloud architecture, you can quickly lease internet numbers without spending a lot of money upfront. For example, if you buy IP addresses right now, you might have to pay around  $60 per IP, while leasing can cost you only $0.46 per IP per month (October 3, 2022 data). 

Essentially, IP leasing enables you to save a lot of money whether you need a lot of IP addresses or just a single /24 block. The best part is that you can direct the money you save towards other business needs.

Moreover, leasing IP addresses is much quicker and more efficient than buying IPs or transferring them. If you want to purchase your assets from an IP broker or request a transfer from a Regional Internet Registry, you might need to wait weeks to acquire the specific subnet. That is because IP brokers may not have the necessary resources for your specific purposes right away.

At IPXO, Internet Protocol Exchange Organization, we offer the world’s first fully automated IP lease and monetization platform for those who need IP resources. You can immediately obtain the necessary IPv4 addresses quickly and cost-efficiently and assign them to any infrastructure. Also, we can offer a wide selection of IPv4 addresses from all internet registries, so you can find exactly what you need.

IPXO logo in the middle surrounded by logos of all 5 regional internet registries.
IPXO works with all five Regional Internet Registries


Are you thinking of cloud solutions for your business? As you now know, public and private clouds have individual benefits and downsides. Luckily, you can combine them together into a centralized infrastructure that creates an environment worth the investment.

A private cloud combined with a public cloud infrastructure can significantly benefit businesses worldwide. Companies can integrate their data center and private cloud setup with public cloud resources to achieve greater agility in terms of data storage and computing power. 

Perhaps you are already developing a hybrid cloud setup for your company, but you do not have the IP resources that are necessary for your business operations. IPXO has got you covered. With IP leasing, you can quickly acquire the IP assets you need and use them on any infrastructure.

If you are interested in IP leasing and what we can offer for your specific business needs, book a free demo! We will demonstrate how IPv4 leasing can help your company grow quickly and cost-efficiently.

About the author

Beatričė Raščiūtė

Technical Content Writer

Beatričė is a Technical Content Writer at IPXO. Having experience in translations, she decided to test new waters in the tech industry as a writer. While creating content, she dives deep into different internet and networking topics with the goal to present valuable information in the most reader-friendly way.
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