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When you’re seeking a cloud hosting solution, it can feel like there is always a new model emerging, and you may struggle to know which is best for you. Federated cloud is a flexible approach with similarities to hybrid and multi-cloud models, and has been described by some as the future of cloud. In this insight, we are exploring what federated cloud is, its place in the current market and future of cloud computing, and considerations if you are planning on adopting the model.
<h2>What is federated cloud?</h2>
Federated cloud is an infrastructure model connecting different cloud services together through standard APIs and protocols. This is managed as a single, unified computing environment, allowing data sharing, resource pooling, communication and workloads migration between the different cloud environments. The approach brings full interoperability, connecting services into one system.
The benefits of federated cloud include:
<ul>
<li style="font-weight: 400;" aria-level="1">Flexibility to use multiple cloud environments to best fit your workloads</li>
<li style="font-weight: 400;" aria-level="1">Enables pooling of resources across cloud environments</li>
<li style="font-weight: 400;" aria-level="1">Reliability and availability through built-in redundancies</li>
<li style="font-weight: 400;" aria-level="1">Avoiding vendor lock-in </li>
</ul>
<h2>What are the differences between federated cloud, multi-cloud and hybrid cloud?</h2>
Although federated cloud, multi-cloud and hybrid cloud all combine multiple hosting environments, there are a few key differences in their approach. 
Federated cloud: Multiple clouds from multiple providers interconnected in a single unified system, with full interoperability and sharing of resources
Hybrid cloud: A mixed IT infrastructure commonly containing an on-premise or private cloud environment in tandem with a public cloud, with integration but without full interoperability or sharing of resources
Multi-cloud: A solution consisting of multiple cloud services, either from multiple providers or a single provider, without integration or shared resources
<h2>How does federated cloud fit in the current market?</h2>
<h3>Demand for flexibility</h3>
We are continuing to see demand for flexible hosting solutions, with businesses moving away from the rigid on-premise or single cloud environments common in the past. For businesses looking to adopt emerging technologies such as generative AI and edge computing, agility is essential. The federated cloud model allows businesses to act quickly, adding new environments, redistributing or scaling resources, and moving workloads with ease. 
<h3>Data sovereignty and compliance requirements</h3>
Data sovereignty is currently a top priority for many businesses. For global businesses, the ability to store and process data in multiple countries supports compliance in all areas of operation. Federated cloud allows businesses to host in multiple countries and comply with the regulations in each.
<h3>Avoid vendor lock-in and mitigate cloud concentration risk</h3>
While, when initially adopting cloud technology, many businesses may have chosen to host their entire infrastructure with one hyperscaler, we are now seeing a pushback against this approach. With growing awareness of the issues of <a href="https://www.hyve.com/insights/how-to-avoid-vendor-lock-in/">vendor lock-in</a> and <a href="https://www.hyve.com/insights/mitigating-cloud-concentration-risk/">cloud concentration</a>, federated cloud offers an opportunity for businesses to diversify their infrastructure. When you store all critical data in one cloud environment, a single incident endangers your entire operation. With a federated cloud model, businesses can spread the risk. 
<h2>Challenges to federated cloud adoption</h2>
While there are many reasons to consider a federated cloud approach, there are a number of challenges to consider.
<ul>
<li style="font-weight: 400;" aria-level="1">Complexity: Managing and integrating multiple cloud platforms is time-intensive when handled in-house, and requires expertise.</li>
<li style="font-weight: 400;" aria-level="1">Security risks: Interconnecting cloud environments can introduce vulnerabilities; robust security and data isolation measures are crucial.</li>
<li style="font-weight: 400;" aria-level="1">Standardisation issues: Lack of universal cloud interoperability standards may cause compatibility challenges across providers.</li>
<li style="font-weight: 400;" aria-level="1">Cost management: Tracking and optimising resources across clouds requires constant monitoring to prevent costs spiralling.</li>
</ul>
These challenges should not put you off of adopting the federated cloud model, but they should be taken into account in your decision. 
<h2>How management is crucial to federated cloud</h2>
The potential pitfalls of federated cloud largely stem from a lack of management. With a complex infrastructure spanning multiple environments, full oversight is necessary. There are several areas where management is crucial:
<ul>
<li style="font-weight: 400;" aria-level="1">Resource and cost optimisation</li>
<li style="font-weight: 400;" aria-level="1">Performance</li>
<li style="font-weight: 400;" aria-level="1">Security</li>
<li style="font-weight: 400;" aria-level="1">Integration and interoperability</li>
<li style="font-weight: 400;" aria-level="1">Strategic growth </li>
</ul>
If you choose to manage your federated cloud infrastructure in-house, you will need a clear plan for each of these areas, and should ensure you have sufficient resources.This includes equipping staff with the necessary skills and training to be able to manage complex hosting environments. . 
Alternatively, a managed service provider (MSP) can manage your federated cloud on your behalf. The benefit of this option is that you will still have control over your infrastructure, but without the burden of day-to-day management. An experienced MSP can ensure your platforms are working harmoniously together, optimising your resources and costs, while providing expert security. 
<h2>Is federated cloud the future?</h2>
With clear market demand for the flexibility and control it offers, the future of federated cloud looks promising. The global hybrid cloud market is projected to reach $414.1 billion by 2032 (<a href="https://www.alliedmarketresearch.com/hybrid-cloud-market">Allied Market Research</a>), indicating a strong trend toward flexible infrastructure. Federated cloud can further capitalise on this demand by enabling seamless collaboration across diverse cloud environments.
At this stage, the benefits are greater for larger organisations with requirements for a large infrastructure that supports data sovereignty and compliance requirements. For smaller organisations, the challenges and resources needed to establish a federated infrastructure may prove too much of a strain, with a simpler hosting solution better meeting their needs. 
The primary challenge to federated cloud adoption is management. Improper management has the potential to lead to security vulnerabilities, compatibility issues, and misallocated resources. In order for federated cloud to continue to grow, this management aspect must be addressed by organisations, either by allocating sufficient in-house resources, or through third-party management through a provider such as Hyve.
Find out more about the <a href="https://www.hyve.com/management/">benefits of management</a>, or <a href="https://www.hyve.com/contact-us/">contact our experts</a> to learn more about your infrastructure options.

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Federated cloud is an infrastructure model connecting different cloud services together through standard APIs and protocols. This is managed as a single, unified computing environment, allowing data sharing, resource pooling, communication and workloads migration between the different cloud environments.

When you’re seeking a cloud hosting solution, it can feel like there is always a new model emerging, and you may struggle to know which is best for you. Federated cloud is a flexible approach with similarities to hybrid and multi-cloud models, and has been described by some as the future of cloud.

Is Federation the Future of the Cloud?

Is Federation the Future of the Cloud? | Hyve Managed Hosting

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