The Rise of Hybrid Cloud in Enterprise IT

Hybrid cloud adoption is accelerating as businesses seek agility, performance, and resilience. According to Gartner, by 2027, 90% of organizations will use hybrid cloud to optimize workloads (Gartner, 2024). This shift is driven by the need for:

- Flexibility – Ability to run workloads in the best-suited environment.
- Cost Optimization – Efficient resource allocation between on-prem and cloud.
- Security & Compliance – Ensuring data sovereignty and regulatory adherence.
- Resilience & Scalability – Leveraging cloud elasticity while maintaining mission-critical systems.

Data Placement: What Belongs Where?

A 'fit for business purpose' approach ensures each dataset resides in the optimal environment based on business needs. In a recent IBM article, “Organizations that adopt hybrid by design break the ROI bottleneck, drive business outcomes to realize the full value of their digital transformation.”

Data that Belongs on the Mainframe

- Mission-Critical Transactions – Core banking, payment processing, and supply chain operations require low latency, security, and reliability (Luxoft, 2024).
- Highly Regulated Data – Financial, healthcare, and government data require strict compliance and controlled access.
- Batch Processing & Legacy Applications – Workloads designed for mainframes remain efficient without costly re-platforming.

Use Cases for Leveraging the Cloud

- AI, Analytics & Business Intelligence – Cloud AI/ML enables real-time insights from historical mainframe data (IBM, 2024).
- Customer-Facing Digital Services – Global accessibility and omnichannel experiences require cloud-based data.
- DevOps & Testing – Agile development, sandbox environments, and cloud-based CI/CD pipelines optimize innovation.
- Additional Protection through Off-Prem Data Copy – Augment existing ‘resiliency’ capabilities through off-prem object store-based copies.

Data That Needs to Move Between Mainframe & Cloud

- Fraud Detection & Real-Time Risk Analysis – The mainframe processes transactions, while the cloud builds AI models that the mainframe uses to detect anomalies like fraud in real-time.
- Hybrid AI-Driven Customer Insights – Cloud analytics processes structured and unstructured mainframe data.
- Compliance & Archival Storage – Some cloud-generated data must be archived on mainframes for regulatory compliance.

Hybrid Integration: Bridging the Mainframe and Cloud

Seamless integration is essential to unlocking hybrid cloud’s potential. Businesses must ensure interoperability, governance, and security through:

- APIs & Microservices – Enabling real-time access to mainframe data from cloud applications.
- ETL & Data Virtualization – Nondisruptive and secure data movement of core operations.
- Hybrid Cloud Orchestration Tools – Several products in the space, including DFSMS Cloud Data Manager, facilitate efficient data storage, access, and retrieval between environments.

DFSMS Cloud Data Manager – This IBM solution helps enterprises optimize data management by automating storage across hybrid environments. It enables seamless integration of cloud-based storage with mainframe data, providing:

  - Automated Tiering – Moves data between high-performance mainframe storage and cost-effective cloud storage as needed.
  - Scalability & Cost Savings – Reduces on-premises storage costs while leveraging cloud elasticity.
  - Skills Gap Mitigation – Uses industry-standard storage APIs for seamless management.
  - Facilitating Data Fabric Integration – Enables enterprises to integrate hybrid cloud storage solutions into their existing data fabric.

Business Benefits of Hybrid Cloud for Mainframe Data

A hybrid cloud-mainframe strategy delivers:

- Cost Efficiency – Retains mainframe for mission-critical workloads while reducing cloud overuse.
- Enhanced Customer Experience – AI-driven personalization and real-time decision-making.
- Regulatory Compliance & Security – Controlled data residency while leveraging cloud innovation.
- Future-Proofing IT – Extends mainframe lifespan while integrating modern capabilities (CoreSite, 2024).

Future Trends & Considerations

Organizations must continue evolving their hybrid cloud strategies, considering:

- Quantum Computing & Hybrid Workloads – The potential to process complex computations faster.
- Advanced Security & Compliance Frameworks – AI-driven security solutions and automated compliance monitoring.
- Next-Gen Storage & DFSMS Cloud Data Manager – Optimizing data management and governance for seamless integration.

Conclusion: Aligning Technology with Business Needs

A hybrid cloud-mainframe approach isn't just a technology decision—it’s a business strategy. By applying a ‘fit for business purpose’ mindset, organizations can align data placement, IT infrastructure, and strategic goals. The result? Optimized performance, cost efficiency, security, and agility, ensuring long-term digital success.

References

- Gartner. “90% of organizations will adopt hybrid cloud by 2027.” – Source
- IBM. “Hybrid cloud agility enables businesses to provision resources rapidly.” – Source
- Fortinet. “Hybrid cloud optimizes costs and facilitates scaling during growth phases.” – Source
- CoreSite. “Hybrid cloud solutions offer accessibility, high performance, and scalability.” – Source
- TechRepublic (Gartner Report). “More than 50% of enterprises will use industry cloud platforms by 2028.” – Source
- Luxoft. “Mainframe-hybrid cloud is the preferred choice for banks.” – Source
- IBM Nordic Blog. “What does it take to make data fit for purpose?” – Source