Cloud platform for a company that must keep some systems on its own premises

That’s a hybrid cloud: the company uses cloud services while keeping some systems on its own premises. The on-premises systems might be kept there for security, compliance, or technical reasons. (csrc.nist.gov)

If you’re asking for the term in a multiple-choice question, hybrid cloud is likely the answer. PaaS and IaaS describe what kind of cloud service is provided; hybrid cloud describes where the systems run and how environments are combined.

The best fit depends mostly on the cloud provider you already use and whether you have a platform team to run Kubernetes. Here are the main options as of late 2026.

If you're a Microsoft shop: Azure Local with Azure Arc. Azure Local is Microsoft's rebranded Azure Stack HCI. It runs on hardware you buy from OEMs like Dell, HPE, or Lenovo, and it's billed per core on a pay-as-you-go subscription. Azure Arc extends Azure management to any infrastructure, including on-premises servers and even resources running on AWS or GCP. It's a management layer, so it doesn't require new branded racks.

If you're an AWS shop: AWS Outposts. Outposts brings AWS compute, storage, and services directly to customer premises using AWS-managed hardware. The trade-off is lock-in: Outposts requires a fixed three-year hardware contract. It also focuses on delivering AWS services locally rather than managing across multiple clouds.

If you need Kubernetes or a multi-cloud setup: Google Distributed Cloud or Red Hat OpenShift. Google Distributed Cloud brings Google Cloud services and Kubernetes-based orchestration to edge locations and on-premises data centers, and it includes a fully air-gapped option. Red Hat OpenShift suits teams that want one Kubernetes distribution everywhere and have a platform team to run it.

If you're heavily invested in VMware: VMware Cloud Foundation. VCF bundles vSphere, vSAN, NSX, and Aria into a software-defined data center that behaves the same on-premises and in major public clouds. It's also a common choice for large vSphere estates and air-gapped sites.

Other options: HPE GreenLake suits enterprises that want a vendor to co-manage on-premises infrastructure. Oracle's Dedicated Region or Cloud@Customer offers an unmatched fit for organizations needing to run Oracle Database or Exadata workloads on-premises.

Rough guidance:

• Pick the option that matches your main cloud provider, since that keeps tooling, identity, and skills consistent.
• Check the hardware model and contract terms before you commit, because they vary a lot. Azure Local uses hardware you choose, while Outposts uses AWS-owned hardware.
• If you need to run workloads across several clouds, Azure Arc or Anthos-style tools are more flexible than Outposts.

If you tell me your current cloud provider, what systems must stay on-premises (for example, databases, VMs, or Kubernetes apps), and whether you have regulatory or air-gap requirements, I can narrow this to one or two recommendations.

For companies that need to maintain some systems on-premises while leveraging the cloud, a hybrid cloud approach is the industry standard. This model allows you to keep sensitive or latency-sensitive workloads in your own data center while using the public cloud for scalability, AI, or global reach.

All major cloud providers offer specialized platforms designed to unify the management of your on-premises infrastructure with their public cloud services.

Leading Hybrid Cloud Platforms

1. Microsoft Azure (Azure Arc & Azure Local)

Azure is widely considered a leader in hybrid cloud. It is particularly strong if your organization already relies on the Microsoft ecosystem.

• Key Tools: Azure Arc allows you to manage servers, Kubernetes clusters, and applications across your on-premises data centers and other clouds as if they were running in Azure. Azure Local (formerly Azure Stack HCI) provides a way to run Azure-consistent infrastructure directly on your own hardware.
• Best for: Organizations wanting a consistent management plane and unified security (via Microsoft Defender) across all environments.

2. Amazon Web Services (AWS Outposts & EKS Anywhere)

AWS provides a "consistent experience" by extending its native cloud infrastructure into your physical space.

• Key Tools: AWS Outposts delivers native AWS hardware and services to your on-premises facility. Amazon EKS Anywhere allows you to create and operate Kubernetes clusters on your own infrastructure using the same tools as the managed Amazon EKS service in the cloud.
• Best for: Companies that want the exact same AWS APIs, tools, and services on-premises as they have in the public cloud.

3. Google Cloud (Google Distributed Cloud & Anthos)

Google Cloud focuses on containerization and open-source flexibility, making it a strong choice for modern, application-centric environments.

• Key Tools: Google Distributed Cloud extends Google’s hardware and software infrastructure to your data center or edge locations. Anthos is their flagship platform for managing containerized applications across on-premises environments and multiple clouds.
• Best for: Organizations heavily invested in Kubernetes and those looking for an open, portable way to modernize applications without being tied to a single infrastructure provider.

How to Choose the Right Solution

When evaluating these platforms, consider these three criteria:

• Workload Requirements: Do you need to run specific hardware (e.g., vSphere), or do you need a full "cloud-in-a-box" experience? If you have existing VMware investments, look for solutions like VMware Cloud (available on AWS and other providers).
• Management Complexity: Do you want a single pane of glass to manage everything? Tools like Azure Arc are specifically designed to bring visibility to disparate systems (even those in other clouds) into one dashboard.
• Data Residency & Latency: If you must keep data on-premises for regulatory reasons, ensure the platform supports local data processing and local control planes so that your systems remain operational even if your internet connection is interrupted.

Recommendation: Start by auditing your current on-premises stack. If you are already a heavy user of Microsoft software, Azure is often the path of least resistance. If you are prioritizing container-native, open-source development, Google Cloud (Anthos) provides excellent flexibility. If you want your on-premises environment to feel and function exactly like a public cloud region, AWS Outposts is a premier choice.

You’re looking for a hybrid cloud platform: it lets the company keep selected systems on its own premises while connecting them to public-cloud services.

• Microsoft Azure Arc is a good fit if the company wants to keep workloads on existing servers or Kubernetes clusters and manage them alongside Azure from a central control plane. The workloads can stay where they are while Azure tools provide unified management, governance, and security. ¹
• AWS Outposts is worth considering if the company wants AWS infrastructure and services physically installed in its facility, for workloads that need local processing, low latency, or data residency. ²

In short: Azure Arc manages workloads that remain on existing infrastructure; Outposts brings cloud infrastructure onto the premises. The right choice depends on whether the priority is managing what you already have or running cloud services locally.

Sources: ¹ Azure Arc · ² AWS Outposts