strategy, multi-cloud, cloud, application migration, cloud security

One cloud provider isn’t enough to support today’s enterprise. When cloud computing emerged, selecting a single provider to handle data storage and computing needs was a straightforward solution. It simplified management and allowed businesses to partner with vendors to offer the best services. However, the limitations of a single-cloud strategy have since become apparent – namely, restricted scalability, inflexibility, heightened risk and vendor lock-in.

Digital transformation is driving companies to adopt a multi-cloud strategy, combining services from different providers to access best-of-breed solutions. For instance, while some cloud providers excel at data storage, others may offer superior machine learning data management services. A multi-cloud approach allows enterprises to distribute workloads, fostering a more resilient, flexible and cost-effective infrastructure.

This shift is revolutionizing enterprise architectures by offering new efficiencies and scalability. However, the challenge is determining how to effectively manage and optimize multi-cloud environments.

The Move to a Multi-Cloud Strategy

The COVID-19 pandemic accelerated the adoption of cloud computing as businesses rushed to support remote workers. However, CIOs soon realized the hidden costs of cloud management, including security, redundancy and operational inefficiencies.

Today, controlling cloud costs has become a top priority. According to Flexera’s 2024 State of the Cloud report, optimizing cloud spending is the primary concern for all organizations using cloud services. Over half have employed a FinOps team to assist with cloud optimization strategies, with an additional 20% planning to create one in the coming year. IDC research shows that cost concerns and new business complexities are driving 70% of enterprises to better manage their cloud spending.

As expenses fluctuate, cloud cost management can be a full-time task. As a result, many companies are outsourcing cloud management while embracing multi-cloud strategies to improve efficiency, reduce costs and negotiate better rates.

Businesses can access the best cloud resources by adopting a multi-cloud architecture. For example, one provider may offer robust service-level agreements (SLAs) while another may provide top-notch security. Multi-cloud environments can also enhance cost-effectiveness by offering greater flexibility and reducing overhead. Additionally, multi-cloud solutions improve resiliency and scalability and simplify regulatory compliance across workloads.

A study by 451 Research identifies data sovereignty (41%) and cost optimization (40%) as the main drivers for multi-cloud adoption. Other factors include agility and innovation (30%), adopting best-of-breed applications (25%), and concerns about vendor lock-in (25%).

Assessing Cloud Computing Options

Enterprise architects and cloud service providers leverage various multi-cloud strategies to meet specific business needs. Here are the four most common cloud configurations:

  • Single cloud – Businesses new to cloud computing often start with a single provider, selecting one based on cost and service options. These providers typically offer Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), or Platform-as-a-Service (PaaS) solutions.
  • Hybrid cloud – Hybrid cloud combines on-premises data centers or edge locations with single cloud services, creating a shared computing system. It allows for sharing of applications, data, and storage across  private, public, and local systems, streamlining operations.
  • Multiple cloud – More companies are adopting multi-cloud strategies to address business needs and manage costs. Rather than relying on a single provider, multi-cloud infrastructures use various cloud services for different tasks, minimizing vendor lock-in.
  • Intercloud – This newer strategy connects multiple public cloud services to a solitary, holistic system. It distributes workloads across providers, improving performance and cost efficiency.

The Multi-Cloud Advantage

Adopting a multi-cloud strategy provides several benefits. For example, an organization might use a hybrid cloud setup with business applications hosted on-premises and cloud resources reserved for disaster recovery. In the event of a data center failure, secondary workloads would shift to the cloud, ensuring business continuity. Another organization might maintain a database on Microsoft Azure while running applications on Google Cloud Platform, leveraging each platform’s strengths.

Some key advantages of a multi-cloud approach are:

  • Best-in-class providers – Enterprises can mix and match cloud providers to optimize performance.
  • Cost savings – By utilizing public cloud services for flexibility, businesses lower their total cost of ownership (TCO).
  • Avoiding vendor lock-in – A multi-cloud setup mitigates the risk of being overly dependent on one provider.
  • Regulatory compliance – Multi-cloud strategies enable easier implementation of uniform security and compliance policies across workloads.
  • Scalability and flexibility – Multi-cloud solutions make it easier to handle increased data processing, storage, and automation needs.

Cloud computing is evolving, and Gartner refers to this trend as the rise of “composable enterprise.” Businesses can now assemble resources from various providers to meet changing business needs. Decoupling infrastructure through multi-cloud strategies reduces reliance on any single vendor, cuts cost and gives enterprises greater control over their data.

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