Auckland, NZ | 7 May 2025 — At a private three-course lunch hosted by Systemethix and IBM at Onslow Restaurant in Auckland, a handpicked group of ANZ tech leaders came together to discuss the real-world state of hybrid cloud.
CIOs, CTOs, and Heads of Architecture shared unfiltered insights into what’s working, what’s not, and where enterprise infrastructure is headed next. The roundtable offered a rare window into how organisations across the region are navigating cloud complexity, cost pressures, and modernisation efforts.
What is a Hybrid Cloud Platform?
A hybrid cloud platform is a strategic IT environment that blends public cloud, private cloud, and on-premise infrastructure. It enables seamless data and application mobility across these environments, giving organisations the agility of public cloud with the control of private infrastructure.
In essence, hybrid cloud is about flexibility and balance – letting businesses optimise cost, performance, compliance, and innovation without being locked into a single model.
Key Takeaways: A Snapshot of the Cloud Reality in New Zealand
One of the standout insights from the day was how diverse and fragmented cloud journeys have become:
- ~1/3 of organisations are nearing 100% public cloud adoption
- ~1/3 still rely heavily on on-premise infrastructure, often bridging with SaaS
- ~1/3 are navigating complex hybrid or multi-cloud architectures, often with legacy dependencies
This spectrum confirms a critical truth: there’s no one-size-fits-all approach. Enterprise cloud strategy is deeply contextual – driven by industry, maturity, and risk tolerance.
“There’s no template for this,” one attendee commented. “Everyone’s architecture reflects their legacy, structure, and speed of change.”
Why On-Prem is Still Relevant
Despite the market push for full cloud adoption, many leaders shared why on-prem infrastructure continues to play a key role:
- Unpredictable cloud costs and immature FinOps practices create budgeting challenges
- Legacy workloads and compliance issues demand on-prem reliability and control
- Low appetite for vendor lock-in and complex consumption models makes cloud migration less attractive
“For some teams, SaaS is the only cloud they can handle right now,” one participant noted. “You can’t modernise everything overnight.”
What’s Holding Enterprises Back?
While the public cloud narrative dominates headlines, many leaders at the roundtable shared cautionary tales that underscore why hybrid remains the preferred path for many:
- Cost unpredictability: Cloud consumption models are flexible, but without strong FinOps capabilities, they often lead to surprise billing cycles.
- Vendor management: Complex, evolving agreements with multiple providers create friction and resource strain.
- Security, scale, and agility: Balancing these three factors remains one of the greatest operational challenges in hybrid and multi-cloud setups.
- ClickOps fatigue: A lack of standardisation and reliance on manual provisioning has driven renewed interest in infrastructure-as-code, automation, and centralised governance frameworks.
“Automation is no longer optional – it’s the only way to scale cloud operations without spiralling costs and complexity,” said one attendee.
Hybrid/Multi-Cloud Realities
Rather than tidy, uniform cloud strategies, most attendees described messy, multi-cloud environments shaped by constraints rather than ideal architectures.
Some organisations are all-in on one vendor (e.g., Azure), while others mix cloud platforms out of necessity. Few have achieved full cloud-native transformation – highlighting the challenges of hybrid cloud deployment models in the real world.
One leader shared how their organisation uses private cloud for customer data due to compliance, while public cloud supports DevOps pipelines – an intentional hybrid cloud architecture balancing speed and sovereignty.
Strategic Priorities in 2025 and Beyond
The roundtable discussion revealed a clear list of shared enterprise goals:
- Automation & Self-Healing Infrastructure: Reducing manual ClickOps with infrastructure-as-code and intelligent monitoring
- Cloud Cost Governance: Tackling unpredictable spending by building FinOps capability
- Security & Agility at Scale: Maintaining visibility and policy control across environments
- Vendor Management: Simplifying complex relationships and consumption agreements
- Balancing Innovation & Standardisation: Accelerating digital capabilities while supporting legacy systems
Advantages and Disadvantages of Hybrid Cloud
Advantages of Hybrid Cloud:
- Greater flexibility and customisation
- Better cost optimisation by placing workloads where they fit best
- Improved compliance and data sovereignty
- Enhanced resilience and disaster recovery options
Disadvantages:
- A single vendor hybrid cloud platform might be considered a vendor lock-in
- Multiple products are required to make the hybrid cloud work well
“Hybrid cloud is a balancing act,” one CIO remarked. “But it’s a balance worth managing.”
Why IBM & Systemethix Matter Now More Than Ever
With hybrid cloud strategy becoming more nuanced, NZ enterprises are looking for partners who can guide – not just implement.
- Systemethix brings enterprise-grade experience with a local understanding of challenges across NZ industries
- IBM delivers a scalable, open hybrid cloud stack powered by Red Hat OpenShift, supported by AI-ready infrastructure and global best practices
Together, they offer a trusted roadmap for leaders facing mounting complexity across IT, compliance, and innovation.
Final Word: The Hybrid Cloud Mandate
Hybrid cloud is no longer a stepping-stone – it’s the foundation of modern enterprise strategy. As organisations evolve, the ability to manage across cloud types, maintain operational clarity, and automate for scale will separate leaders from laggards.
“We’re not talking about the future – we’re managing the future right now,” said one participant.
Ready to take the next step?
Explore how Systemethix can help you simplify and future-proof your hybrid cloud strategy.
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