A growing number of enterprises are now exploring hybrid and even fully on-premise deployment models for integrations and APIs. This shift is driven not by nostalgia, but by necessity.
The cloud is still king
But not always.
There’s no denying the advantages of running IT platforms, API management, and integration services in the cloud. Flexibility, scalability, and at least in some cases, a lower total cost of ownership make it a very attractive option. The cloud empowers teams to move fast, iterate often, and avoid heavy upfront investments in infrastructure.
However, there are scenarios where the cloud simply isn’t a viable option.
In industries with strict regulatory environments, such as finance, healthcare, or government, data locality and control are non-negotiable. Even if the major cloud providers arguably have more security resources and expertise than most individual organisations, perceived and real risks tied to sovereignty, control, and compliance persist. In some cases, it’s not just about whether data is encrypted and secure, it’s about who has jurisdictional access to that data.
Geopolitical factors also play a role. The location of a data center, or even the nationality of the cloud provider itself, can be a liability in sensitive industries. Certain jurisdictions may decide that relying on a foreign cloud infrastructure introduces unacceptable risks.
Have a plan before you need one
The geopolitical landscape can shift quickly. What is a safe and compliant setup today might not be tomorrow. That’s why it’s increasingly important for organisations to have a clear integration strategy that includes:
- What can run where (cloud, on-premise, edge, etc)
- Why should it run there (risk, regulation, performance)
- How to adapt if conditions change (failover, repatriation, expansion)
Having a flexible architecture and a contingency plan is no longer optional, it’s critical.
Possible architectural approaches
Let’s look at a few possible deployment models, each with its own trade-offs:
1. Everything in the cloud
For organisations that don’t deal with sensitive or highly regulated data (and where geopolitical concerns are minimal), deploying entirely in the cloud remains a strong and viable option, whether using an iPaaS solution or building on cloud-native services.
Pros:
- High scalability and flexibility
- Reduced infrastructure and maintenance burden
- Access to cutting-edge cloud-native tools and innovations
- Easy integration with modern SaaS ecosystems
Cons:
- Less control over data locality
- Regulatory exposure depending on provider and location
- Potential vendor lock-in
- Limited ability to air-gap critical systems
2. On-premise only
A traditional deployment model where integrations, API and the platform run within your own data centers, either on virtualised infrastructure or directly on bare-metal servers as native programs and services.
Pros:
- Maximum control over data and infrastructure
- Easier to meet specific regulatory or data residency requirements
- Air-gapped security and offline continuity are possible
- Predictable operational costs and asset ownership benefits
Cons:
- Possible high upfront and ongoing costs
- Limited scalability and agility
- Demand for in-house IT infrastructure talent
- Harder integration with SaaS and modern cloud-native ecosystems
3. Two different platforms: One cloud, one on-premise
Operate dual platforms: a combination of alternatives 1 and 2. One optimised for cloud-based workloads, and another dedicated to handling sensitive on-premise operations. The cloud-based platform can be either an iPaaS solution or a composition of native cloud services directly.
Pros:
- Optimised for both agility and control
- Can meet mixed regulatory needs
- Better alignment with hybrid business models
- Resiliency and redundancy across diverse environments
Cons:
- Increased complexity and operational overhead
- Demand for in-house IT infrastructure talent
- Potential duplication of effort and tooling
- Governance and monitoring fragmentation
4. One hybrid platform
A single, cohesive integration platform designed to seamlessly deploy across both cloud and on-premise environments, leveraging unified tooling and centralised governance. The hybrid platform supports migrating integrations and solutions between on-premise and cloud environments, in both directions
Pros:
- Best of both worlds: flexibility + control
- Centralised governance and observability
- Easier to move workloads based on changing needs
- Unified tooling reduces cognitive and operational load
- Adaptive architecture that can evolve with policy, risk, or business needs
Cons:
- Higher initial implementation complexity
- Requires careful planning around architecture and policies
- Need for robust DevOps and automation practices
- Demand for in-house IT infrastructure talent
Summary
While the cloud continues to offer massive benefits, it’s clear that a one-size-fits-all approach no longer applies. The growing importance of regulatory compliance, data sovereignty, and geopolitical stability is putting on-premise and hybrid integration architectures back on the map.
Forward-thinking organisations are not abandoning the cloud—they’re simply adding more options to the toolbox. Whether for compliance, resilience, or strategic flexibility, the ability to run integrations and APIs anywhere is quickly becoming a competitive advantage.
If you’re not already thinking about where your critical integrations run and why, now might be the time to start.