Multi-cloud vs hybrid cloud: 8 key differences

With cloud adoption on the rise, many enterprises are exploring different cloud hosting approaches. On the other hand, 84 percent of cloud technology users said that managing cloud spending is a challenge to enterprise cloud usage. The dilemma is finding the best value so you can leverage the cloud’s scalability and performance.

Before you enter a contract with a cloud provider, it’s important to find out which set of services most efficiently covers what you need. Often, this means using several types of hosting — a hybrid cloud or multi-cloud approach. What exactly do these terms mean? 

This guide explains multi-cloud vs hybrid cloud, including their benefits and use cases, to help you decide which is best for your workload and budget.

Cloud computing: A brief explainer 

Cloud computing means using the internet to connect to a service provider’s computer and use its computing resources, such as storage and processing power. 

You’re essentially paying to rent a powerful digital environment where you can store data, run programs, install software, build networks, do calculations, and anything else you’d do on a computer. The difference is that the service provider is offering better computers — and more computers — than you currently own.

Cloud hosting is an increasingly popular alternative due to the framework’s:

• Scalability: Your service provider will increase or decrease your cloud resources on demand. 
• Cost: You skip investing in a pricy server of your own. Instead, cloud providers charge you based on your resource usage.
• Availability: Instead of a single physical server, your cloud provider has an extensive network of servers to switch to, so your risk of downtime is minimal. 

Perhaps departments within your company have different IT requirements — for example, one department prioritizes performance, while another prioritizes privacy. In this case, using various cloud solutions will satisfy each department’s needs. But how does using several clouds work?

Business owners typically choose a hybrid cloud model for its flexibility, security, and cost efficiency. 

Imagine you need sensitive data stored on a private cloud platform, but other processes require less protection. Instead of moving everything to the private cloud, you can implement a hybrid cloud solution. This often costs less than fully private cloud hosting since you handle some functions using a public cloud provider at a lower rate.

In contrast, business owners choose a multi-cloud environment to leverage the strengths of different cloud services and avoid vendor lock-in. 

Imagine a public cloud service specializing in high storage. Another public cloud service has its biggest data center in your target audience’s capital city. You could set up a multi-cloud approach to use the former cloud for idle storage while using the latter cloud to serve your app.

Key differences: Multi-cloud vs hybrid cloud 

Wondering whether hybrid cloud deployment is worth it — or if a multi-cloud strategy is just what you need? Here’s a rundown on the main distinctions of hybrid cloud vs multi-cloud, including:

• Cost
• Security 
• Cloud architecture
• Flexibility and control
• Availability 
• Compliance
• Difficulty
• Management options

Cost 

A hybrid cloud model can be more expensive than a multi-cloud model. That’s because private cloud resource plans are costlier to purchase and operate.   

If you plan to host your server on-site, you’ll need to set up physical machines in a fully equipped building and hire an internal IT team to manage your cloud infrastructure. 

For many business owners, a third-party private cloud provider like Liquid Web strikes a great balance; we provide all the benefits of private cloud — but at a competitive price and without the hassle of manual setup and cloud management. 

Security 

According to the 2024 Cloud Security Study by Thales, 44 percent of respondents have experienced a cloud data breach. If you have concerns about security, know that hybrid cloud is generally more secure than a multi-cloud approach because the latter relies more on public cloud. 

With hybrid cloud, you can keep sensitive data and apps private, which protects your company’s assets and customers’ information. Still, you’ll need to implement security measures to protect against breaches. If in doubt, choose a fully managed private cloud plan from a provider like Liquid Web.

Cloud architecture 

The private cloud aspect of hybrid cloud can be hosted in an on-premises data center or in the data center of a third-party provider. With multi-cloud, all cloud services are hosted off-site. 

If you want on-premises infrastructure, you’ll need an IT team that has experience running servers in-house. An off-site managed private cloud plan is the better option if you want the security and performance benefits of private cloud without the significant on-site investments.

Liquid Web can perform a free cloud migration and then manage the environment while you focus on growing your business.    

Flexibility and control

In a hybrid cloud setup, business owners are free to handpick services that match their company goals, such as cost savings and hands-on control. A multi-cloud approach still offers choice, but control isn’t guaranteed.  

Multi-cloud approaches rely on public clouds, where the customer has limited control over hardware choices, security settings, and other options in the IT environment. In contrast, hybrid cloud approaches include a private environment with much wider customization. 

Liquid Web tailors cloud solutions to each customer’s needs. For example, our VMware-powered private cloud lets you customize your infrastructure and implement your preferred security measures.  

Availability  

Both hybrid cloud and multi-cloud offer high levels of availability. Still, your actual availability will vary based on your choice of cloud vendor. The ideal private cloud provider’s service level agreement guarantees 99 percent uptime or higher — as Liquid Web does.

Compliance 

If you store and handle sensitive customer data, like healthcare information, a public cloud environment won’t satisfy certain regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), so a multi-cloud approach falls short. This is one of the most impactful distinctions of multi-cloud vs hybrid cloud.

With highly sensitive information, data storage in a private cloud environment is recommended. Liquid Web offers HIPAA-audited and PCI compliant hosting to put your mind at ease.         

Difficulty

A hybrid cloud strategy is harder to implement than a multi-cloud strategy, especially if your IT team has limited experience with cloud hosting. 

Depending on your hosting provider, you may have to set up and run your private cloud service yourself, which is no job for novices. If you value performance and control, make sure you have a great IT team in place. 

Alternatively, choose a managed cloud provider, like Liquid Web, to handle the responsibility and optimize your hybrid cloud.  

Management options

When you use different cloud providers in a multi-cloud deployment, each service is usually managed by the provider; you won’t have a say about the management level. Also, the individual service providers can’t manage your IT infrastructure in a unified way. 

With a hybrid cloud environment provided by Liquid Web, you can get a fully managed solution with always-on support. Even with self-managed hosting, we can monitor and maintain your hardware.

Use cases for hybrid cloud vs multi-cloud 

The ideal use cases differ for multi-cloud vs hybrid cloud.

A hybrid cloud infrastructure benefits companies in highly regulated industries, like finance and healthcare. Business owners can find cost savings by leveraging public cloud for non-sensitive workloads, alongside private cloud to keep customer data airtight. As your business grows and tech stacks expand, public cloud resources can quickly scale to handle heavy workloads.

Multi-cloud is a good solution for businesses that won’t benefit from high-level data protection at all, but still need high performance, scalability, cost-effectiveness, and flexibility. It’s also useful if your company doesn’t have the financial capacity for private cloud just yet.

A streaming service, game dev studio, or high-traffic blog could use distributed multi-cloud architecture to reduce latency for customers in distant locations — all while ensuring high availability.    

Final thoughts: Multi-cloud vs hybrid cloud

In your search for the right cloud model, it makes sense to broaden your options beyond a single public or private cloud service, especially if you value flexibility and cost efficiency. When security and performance are concerns, hybrid cloud typically wins out.  

For the most flexible hybrid cloud solution, explore a custom cloud setup from Liquid Web; in particular, our cloud dedicated hosting can be customized to your needs. You’ll enjoy the security and control of a private server, plus the power and convenience of the cloud.

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