Cloud, Hybrid or On-Prem? Smarter Choices for 2025

The cloud has certainly never been a simple yes or no decision. But in 2025, New Zealand organisations are weighing what to run in the public cloud, what to keep on-premises, and when a hybrid approach makes the most sense. The focus is shifting from “cloud first” to “right workload, right place”  ..... with cost control, compliance, and resilience at the centre. 

Hybrid popularity continues to rise 

Recent surveys show almost all IT leaders expect major changes in their cloud strategies in the next two years. Nearly half plan to strengthen hybrid setups, and one in five are increasing investment in private cloud. Hybrid and multi-cloud are now seen as deliberate strategies, not compromises. 

The drivers are clear. Some workloads are well suited to cloud bursting and scaling. Others, especially those involving regulated data or real-time processing, are more efficient on-prem or private. Hybrid architectures allow organisations to balance flexibility and control. 

Costs under pressure 

Many organisations expected the cloud to reduce costs, but public cloud bills often rise faster than planned. Without active management, idle resources and data transfer fees erode savings. 

This is why disciplines like FinOps are expanding. It is not just about monitoring cloud bills, but building a complete picture of total cost of ownership across on-prem, private, cloud, and SaaS. The goal is transparency, better forecasting, and identifying when workloads should move or stay put. 

Stable, predictable workloads often remain cheaper on-prem or in private clouds. Spiky, seasonal, or experimental projects usually belong in the public cloud. Hybrid setups give leaders the flexibility to choose. 

What to put where in 2025 

The rule of thumb for many is shifting from “cloud unless” to “hybrid by design.” Practical considerations: 

• Public cloud: Good for dev/test environments, bursting workloads, global reach, or unpredictable demand. 

• On-prem/private cloud: Best for regulated data, low-latency or performance-critical systems, and legacy workloads too complex or costly to migrate. 

• Hybrid/multi-cloud: Ideal for organisations balancing sovereignty, compliance, and cost efficiency while retaining the ability to scale. 
  

Cloud repatriation (moving some workloads back on-premises) is becoming more common. This reflects a more mature approach to cloud, where flexibility and cost predictability matter as much as scalability. 

What’s next 

Looking ahead, several shifts will shape how New Zealand organisations structure their environments: 

• Broader use of FinOps to track not just cloud but all technology spend. 

• Repatriation of high-cost or sensitive workloads back to local infrastructure. 

• Growth of edge and hybrid edge cloud for IoT and real-time analytics. 

• More unified management tools to oversee multi-cloud, hybrid, and on-prem workloads. 
  

The message is clear: there is no single right answer. Each workload should be assessed for cost, performance, compliance, and business impact. 

Making changes with confidence 

Shifts in cloud strategy can be complex. MomentumIQ helps leaders design smarter, more cost-effective technology environments. Our fractional leaders and flexible resourcing options give organisations access to the right expertise without heavy fixed costs. 

If you’re considering changes to your cloud, hybrid, or on-prem approach in 2025, explore our consulting services or book a conversation with us.