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The cloud strategy that Microsoft is leading and that Google and Amazon are betting on is growing, report says

Microsoft CEO Satya Nadella smiles during the 'Question and Answer' portion of the 2016 Microsoft Annual Shareholders Meeting at the Meydenbauer Center November 30, 2016, 2016 in Bellevue, Washington.
Microsoft CEO Satya Nadella. Stephen Brashear/Getty Images
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For a long time, Microsoft has been touting hybrid cloud, or a mix of on-premises and public-cloud services.

And in the past year, both Amazon Web Services and Google Cloud have followed suit, making major announcements involving hybrid cloud. Companies often choose to keep some of their work on data centers because of regulations, especially in industries such as health or finance, and analysts say this will not change anytime soon.

Indeed, 58% of companies with more than 1,000 employees are now pursuing a hybrid-cloud strategy, up from 51% last year, Flexera's RightScale 2019 State of the Cloud Report said.

What's more, 84% of those companies have a multi-cloud strategy, which means that they store workloads on multiple public clouds, hybrid clouds, or data centers. This rose from 81% last year.

Microsoft launched its hybrid cloud, Azure Stack, in 2017, and Microsoft is the only company out of the top three cloud providers that has a generally available hybrid cloud.

Last November, Amazon announced a hybrid-cloud offering called AWS Outposts, and it will be available later this year. And in February, Google Cloud announced it will make its hybrid-cloud offering, Cloud Services Platform, available as a beta for customers, a move that company officials say is a part of its strategy to attract more enterprise customers.

Read more: Google Cloud's first major launch under new CEO Thomas Kurian is a tool to take on Amazon and Microsoft and win larger customers

In addition, IBM is betting on its upcoming acquisition of Red Hat to help it become a top hybrid-cloud player.

Now, 45% of enterprises cite either hybrid cloud or a balanced approach, which uses public clouds and data centers, as a top priority in their cloud strategies, the survey found. In comparison, 31% of enterprises see public cloud as their biggest focus.

The Flexera RightScale survey polled 786 respondents. Fifty-eight percent of respondents were large corporations with 1,000-plus employees, and 42% were small businesses.

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Rosalie Chan
Rosalie Chan is a senior editor for Business Insider's tech team. Previously, she covered cloud computing and enterprise tech, reporting on companies like Google Cloud, Amazon Web Services, Microsoft, Intel, Alibaba Cloud, Atlassian, GitHub, VMware, Broadcom, and more. She has written extensively on topics including cloud computing, developer companies, open source, and sexism and sexual harassment in the tech industry. She has received the San Francisco Press Club award for continuing coverage for her reporting on sexism and sexual harassment in Silicon Slopes and the Excellence in Business / Consumer / Tech Reporting award from the Asian American Journalists Association for her investigation into the coding boot camp Holberton School. Most recently, she was an editor on the Business Insider investigative package, The True Cost of Data Centers, which received a George Polk Award and an honorable mention from SABEW.Rosalie joined Business Insider after working as a software engineer and freelance journalist. She studied journalism, computer science, and technology and business law at Northwestern University. Her work has previously appeared in TIME, the Huffington Post, VICE, Pacific Standard, Inverse, Chicago magazine, the Chicago Reporter, and more. She's based in San Francisco.