Hybrid cloud is a computer programming architecture used by IT teams to
reap the benefits of both the private and public hosting environments. These work in tandem to run an organisation’s workload and applications.
Uses of hybrid cloud
An example of a firm within the financial services industry which might find use for the hybrid
cloud environment would be a capital markets trading platform. The dual architecture would serve both to keep sensitive data and customer trades on premise – in the private cloud – while at the same time carry out analyses in the
public cloud environment. So how would this be set up?
Imagine that within the firm’s private cloud, it has an on-premises Enterprise Resource Planning (ERP) system. Here are managed elements like customer trading accounts and orders.
The ERP might be sub-divided into three components:
- The Backend for Frontend (BFF) – which decouples frontend user requests from backend services;
- The operational element; and
- Registry, human resources (HR), or other related apps.
Now, imagine the same trading platform sought to build a mobile app, through which users could manage their accounts and trades on-the-go. To build this offering, a new BFF layer in the public cloud would be necessary to serve the endpoints.
The challenge, however, would be to maintain this new, dual architecture, since there are apps now sitting in the public and private clouds. Getting the spheres to seamlessly interact is critical. To do this, technicians would need to build a ‘tunnel’ or
‘bridge’ between them – joining the mobile BFF application with the requisite endpoints in the private cloud.
Herein lies the defining feature of a hybrid cloud environment: interoperability, without which the trading platforms’ users would not be able to execute capital markets trades with the confidence that their sensitive data is safe in the private
cloud.
How to build in scalability
As the trading platform in question grows, and welcomes more user traffic thanks to the mobile app, issues may start to arise during rush hours – especially in the 10 minutes following the opening bell, from 9.30am, and before the closing bell, from 4.00pm
– when the entire system risks becoming bogged down. Any slipups at these times could potentially lead to trades being enacted late; losing clients’ money and the firm its reputation.
To get around this, the platform may wish to break down its monolithic architecture into discreet microservices, starting with the private-cloud BFF and operational elements. These can then be moved into the public cloud using a series of container orchestration
management tools, which automatically provision, deploy, and manage containerised applications. This points to the heart of the public cloud’s benefits: it is highly scalable and vendor agnostic – with many open-source projects and programming languages to
shop.
It should be noted here that while the trading platform has moved its BFF and operational elements to the public cloud, it may wish to keep the registry or HR apps private, on-premises, and firewalled. This ensures greater security for the most sensitive
client information.
The disadvantages of hybrid cloud
With the benefits of the hybrid cloud environment illuminated, it would be remiss to finish without acknowledging some of the key complexities that come with it. Here are five headline challenges:
1. Compatibility
Getting the private and public clouds to operate in harmony is no simple feat, demanding considerable IT expertise and the use of complex container orchestration management tools.
2. Skill demands
Without the right IT expertise in house, firms may have to consider hiring for their hybrid
cloud migrations. The skills required for public infrastructure and hybrid cloud operations are not the same within a private data center.
3. Data management
With two distinct clouds, improper data placement and movement can create security and capital challenges. All information should be encrypted in-transit to avoid slipups.
4. Access assessment
Any firm using hybrid cloud architecture must keep an eye out for data security gaps. Authentication and authorisation represent some of the biggest challenges. Centralised protocols and single sign-on tools to access data in both environments are recommended.
5. Network dependence
Hybrid cloud entirely rests on internet connectivity, meaning unparalleled Wide Area Network (WAN) availability, bandwidth, and latency, are non-negotiable. Backups for connectivity issues should also be considered.
The best of both clouds
Hybrid cloud architecture gives firms the ability to keep secure and private the resources and data they choose, while at the same time benefit from the public cloud to run other applications and workloads. Hybrid cloud is most simply understood as IT
interoperability, portability, scalability, and security.