Hybrid deployment combines on-premises infrastructure with public-cloud services or storage. It connects regulated or legacy systems to cloud-native analytics while balancing data residency, scalability, cost, and operational complexity. section 4.2.1 section 8.4
A practical hybrid architecture typically addresses these concerns:
- Keep regulated datasets in regionally bound on-premises storage while exposing S3-compatible APIs for query and ingestion integration. section 4.4.1
- Use a storage-independent federation layer such as Trino to query data distributed across on-premises systems, clouds, or multiple cloud vendors. section 8.3.7
- Plan for connector configuration, workload tuning, security integration, caching, and consistent governance across federated sources. section 8.3.7
- Trade infrastructure control and regulatory alignment against higher operational expertise and complexity than managed cloud services require. section 8.3.7 section 8.4
Regulated banking analytics
A bank can retain EU-regulated data on premises, connect it to cloud-native analytics, and preserve queryability for archived data through Iceberg metadata. This approach addresses residency and audit needs while reducing dependence on inflexible on-premises scaling. section 4.2.1 section 4.4.1
Table 4.1 Stakeholder interview findings
| Stakeholder group |
Key observations |
Challenges highlighted |
|---|---|---|
| Data engineers |
Fragile, manually intensive pipelines |
Complex schema evolution, redundant regional pipelines, and operational overhead |
| Data analysts and data scientists |
Slow and inconsistent access to trusted data |
Need for improved data freshness, clarity, and reduced manual preprocessing |
| Compliance and security teams |
Strong regulatory compliance needs around data residency, encryption, and lineage |
Lack of built-in auditability and dynamic access controls |
| Business leadership |
Demand for faster insights and lower analytics costs |
Desire for new data-driven products is blocked by slow platform agility |
| IT and infrastructure |
Scalability and operational complexity challenges |
Hybrid cloud/on-prem needs; difficulties maintaining legacy on-prem resources |
Use the stakeholder findings to compare the compliance, scalability, access, cost, and operational pressures that motivate hybrid deployment. section 4.2.1
