Cloud computing technology evangelists, both inside and outside of SAP, often say that the cloud is for everyone, but not always for everything.

What they really mean is that all cloud models can help everyone use modern IT systems, but that not all cloud models should be used for every purpose. So how many cloud models are there and how do they differ?

Three Categories of Clouds

As many ASUG readers will know, we tend to talk about three basic cloud types:

  • The public cloud is owned and operated by a third-party data center that hosts computing resources including data storage, application processing power, and data analytics. Organizations share the same hardware, storage, and network devices and benefit from lower costs, no maintenance, and scalability.
  • A private cloud is reserved exclusively for one business and offers a similar level of largely “virtualized” computing resources running either on-site or hosted by a third-party service provider. It’s easier to customize resources to meet specific IT requirements, and it’s generally more secure.
  • Hybrid cloud is a combination of two or more clouds, both public and private, where some computing functions are separated out to run and exist in different cloud types. This should not be confused with a hybrid approach, where companies are running some systems on-premise and some in the cloud.

What’s the Hype About Hybrid?

Some consider the hybrid cloud model to be the best of both worlds. Organizations can combine the security of on-premise infrastructure with the cost benefits and scalability of the public cloud. It allows them to enjoy the advantages each brings to the table.

In instances where an organization does not want sensitive data to leave its premises, a hybrid cloud model allows customers to work around some of the more pressing limitations of a public cloud model.

Cloud Controls

Organizations that take a hybrid cloud approach can directly address data security and compliance requirements for certain use cases. In a public cloud, you may be drawing your cloud resources from another country, state, or province. With a private cloud model, you can definitively pinpoint which server your data physically resides on. In some use cases, having that knowledge is a legal requirement.

What makes the hybrid cloud model so attractive for many businesses is their ability to combine the benefits of both the public and private cloud. Businesses can take advantage of the public cloud’s ability to scale (upward and downward as needed), the administrative offload to the cloud provider), and the operational-expenditure-based pricing and billing structure. And they can do this with the privacy and control that comes with the private cloud.

Hybrid SAP HANA

So why does hybrid cloud matter to ASUG Members or to any firm using an SAP database or technologies? The answer lies in the “shape” of the cloud mix being used.

Customers typically want to host some portions of their transactional data management on-premise in a private cloud, while also taking advantage of higher-level business intelligence application services provided on a public cloud. Running this kind of mix on SAP HANA means being able to move data (and sometimes whole applications) between clouds. That can often be difficult.

Despite the real-world challenges of shifting workloads, data streams, and applications across clouds, the message from SAP is one of assured flexibility.

SAP’s core hybrid cloud message reads: “Move to the SAP HANA platform quickly and seamlessly by choosing the deployment option that best fits your business needs, budget, and resources. SAP HANA can be deployed on-premise for maximum control, in the cloud for fast time to value, or through a hybrid model that supports a variety of deployment scenarios—from on-premise to cloud to third-party.”

"Bring Your Own" Flexible Architectures

Creating and managing a customized or tailored hybrid network architecture is still complex and hard to do.

According to SAP blogger and software development architect Jan Teichmann, “Architecture-wise, hybrid cloud usage can be thought of as splitting your application stacks vertically as line-of-business scenarios on SAP HANA between on-premise and cloud, but you can also split them horizontally as technology layers (e.g., database, application, presentation).”

Beyond the architectural challenges of multicloud hybrid computing models, SAP has attempted to make the licensing aspect of the whole scenario easier by offering what it calls “bring your own license (BYOL).”

SAP explains that its HANA cloud deployment is available with BYOL as a fully managed service (both public and private cloud) and in hybrid scenarios. This creates what the company differentiates as a pay-as-you-go subscription or perpetual licensing choices for more flexibility.

SAP’s Helping Hybrid Hand

SAP works with customers across industries and has consulting services available to help customers move between cloud models.

Let’s also remember that during TechEd 2018, SAP announced SAP Data Hub 2.3, a product designed to manage data pipelines. Where data must move upward or downward from one cloud resource to another in a hybrid model, this technology can help with the sourcing, ingesting, cleaning, integrating, and filtering operations that data needs in the hybrid cloud world and elsewhere.

Which Cloud Is Safest?

Even with the opportunity to manage data pipelines in a world with hybrid options, Teichmann says there is still a need to argue whether data is more secure in the public cloud (with its highly standardized physical, technological, and legal security standards) or on-premise in the private cloud (well separated behind firewalls and protected by physical, technological, and legal security measures).

All of these complexities in deployment, planning, architecture, and cost mean that the hybrid cloud model is no instant cure-all for every use case. The industry, however, does agree that every business should be considering its cloud options now.

Learn more about cloud deployments by registering for the Impact of Cloud on ERP Trends webcast. You can also catch up on our research recap of 10 Things to Know About the Cloud.