According to Flexera’s 2021 State of the Cloud Report, 92% of enterprises have a multi-cloud strategy. But why?
This shift reflects how businesses are adapting to stay competitive, cut costs, reduce risk, and become more flexible in how they operate. In this blog, we’ll break down what a multi-cloud strategy really means, why more companies are going this route, and whether it’s the right fit for your business.
What is a Multi-Cloud Strategy?
Let’s keep this simple. A multi-cloud strategy means using more than one cloud provider, for example, running some services on AWS, others on Microsoft Azure, and maybe hosting sensitive data in a private cloud.
It’s different from a hybrid cloud, which typically blends public and private clouds in a more integrated way. And it’s certainly not the same as going all-in with one provider, like putting everything on Google Cloud or AWS which is what we call a single cloud strategy.
Here’s a common example:
A company might use Azure for its Microsoft 365 and Active Directory integrations but turn to AWS for data recovery or scalable compute resources. Over time, they find themselves using each platform for what it does best, which is essentially a multi-cloud setup.
Why Enterprises Prefer Multi-Cloud (Key Benefits)
Now to the “why” and there’s more than one good reason.
1. Avoiding Lock-In
When you commit to one provider, you accept their pricing, roadmap, performance, and limits. A multi-cloud strategy gives you more control and negotiation power. You’re not stuck if one provider raises prices or retires a service.
2. Flexibility to Use the Best Tools
Different providers are better at other things. Google Cloud has strong AI and data tools, AWS offers unmatched scalability, Azure works seamlessly with Microsoft environments. Why limit yourself when you can choose the best for each workload?
3. Cost Optimisation
Using multiple providers can help you compare prices and shift workloads where it’s more cost-effective. It’s not about using all clouds equally, it’s about using each one smartly.
4. Risk Management & Resilience
If one provider has an outage, your whole business isn’t offline. With workloads spread across providers, you can ensure higher availability and disaster recovery options.
5. Data Sovereignty & Compliance
Certain data must stay in specific locations. Multi-cloud lets you choose where data sits, helping you stay compliant with regional laws and industry regulations.
Real-World Use Cases
Let’s bring this to life.
Case 1: Disaster Recovery with AWS + Azure
A company running on-prem VMware workloads wanted to move disaster recovery to the cloud. They found AWS Elastic Disaster Recovery useful but the recovery times weren’t fast enough for every application. So they split their DR between AWS and Azure to get the best mix of speed and reliability.
Case 2: Cost Control and Specialised Services
A large retail business used Google Cloud for data analytics and AI workloads while keeping its e-commerce platform on Azure for seamless integration with existing systems. This setup helped them manage costs and stay agile during seasonal traffic spikes.
Case 3: Compliance in Financial Services
A financial institution ran sensitive data on a private cloud to meet strict compliance standards while using public clouds like AWS for less sensitive services. The mix helped them stay compliant without giving up modern tools.
Challenges with Multi-Cloud Strategy
It’s not all upside — there are some real challenges to consider.
1. Complexity
Managing multiple providers means learning multiple platforms, billing systems, and security models. Without the right tools or people, things can get messy fast.
2. Skill Gaps
Your IT team needs to understand more than one ecosystem. That’s a big ask if you’re a small or mid-sized business without a large technical crew.
3. Visibility & Cost Tracking
It’s easy to lose sight of what’s running where and what it’s costing you. Without proper monitoring and controls, cloud costs can blow out quickly.
4. Integration Issues
Different clouds don’t always play nicely together. Moving data or applications between them can introduce delays, incompatibilities, or even security risks.
Is Multi-Cloud Right for You?
Before you jump in, ask these questions:
Do we have the internal capability to manage multiple providers?
Are we looking for cost savings, flexibility, or both?
Is avoiding lock-in a priority, or are we okay committing long-term to one vendor?
Are there compliance or data location requirements to meet?
Do our workloads benefit from specialised tools that exist in different clouds?
Multi-cloud is powerful, but it’s not a must for everyone. Sometimes, sticking to one cloud (at least for now) is simpler and more cost-effective especially if you’re a smaller team or just getting started.
The reason so many enterprises are going multi-cloud comes down to freedom, freedom to choose the best tools, keep costs in check, reduce risk, and stay in control of their own infrastructure.
But with that freedom comes responsibility. Multi-cloud isn’t plug-and-play, it needs planning, the right talent, and a clear strategy to avoid complexity and cost overruns.
The key is to start with your business goals, not just technology. If you’re exploring your next steps, or wondering whether your current setup is serving you well, now’s the time to assess and plan.
