For years, the conversation in tech circles was about moving everything to the public cloud. Faster, cheaper, more scalable – it sounded like the obvious path. But in 2025, the reality for many CTOs is more nuanced.
Rather than going all in on public cloud, organisations are increasingly adopting hybrid infrastructure models – blending on-premises, private cloud, and public cloud resources. And in parallel, they’re turning a sharper eye toward optimising SaaS investments like Microsoft 365 with AI-driven governance.
It’s not about going backwards. It’s about going smarter.
Why Hybrid Is Back in Favour
The hybrid Infrastructure-as-a-Service (IaaS) approach is gaining traction for some compelling reasons:
- Compliance: Certain industries face strict regulations on where and how data is stored. Hybrid setups give flexibility without compromising compliance.
- Cost control: Public cloud bills can spiral quickly without tight oversight. Retaining some workloads on-premises can stabilise costs.
- Performance: Keeping latency-sensitive applications closer to the end-user can improve speed and reliability.
A recent Irish Tech News article highlighted that hybrid models also reduce vendor lock-in – something many CIOs and CTOs are keen to avoid after seeing cloud pricing shifts in recent years.
The Untapped Potential of SaaS Optimisation
SaaS tools like Microsoft 365 are already core to most workplaces. But here’s the uncomfortable truth: a lot of licences go unused, and many features are under-leveraged.
This is where AI-led governance frameworks come in:
- Usage analytics: Identify which apps and licences are actually being used, and by whom.
- Automated provisioning: Use AI to adjust access rights in real-time, based on role changes or inactivity.
- Security compliance: Apply dynamic policies to protect sensitive data without over-restricting users.
- Feature adoption tracking: Pinpoint features that can boost productivity and guide targeted training.
According to CloudOffix, this approach isn’t just about cutting costs. It’s about maximising return on investment by ensuring teams are getting full value from every tool they touch.
What CTOs Should Be Doing Now
- Audit your cloud workloads – decide which should remain on-prem, which belong in private cloud, and which can thrive in public cloud.
- Review SaaS utilisation data – you might be shocked by how much is paid for but unused.
- Explore AI-driven governance solutions – look for platforms that integrate with your current Microsoft 365 or other SaaS tools.
- Plan for scalability and flexibility – hybrid should make it easier to adapt to changing business needs, not harder.
The Bigger Picture
Hybrid IaaS and SaaS optimisation aren’t short-term cost-cutting measures. They’re strategic moves that give organisations more control, more resilience, and more value from the tech they already have.
In an era where the cloud is everywhere, the smartest move might be knowing when not to put everything there – and making the most of what you’ve already invested in.
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