The Distributed Hybrid Infrastructure Vendor Landscape in 2025

Table of Contents

• Why Distributed Hybrid Infrastructure Is Surging in 2025
• The Vendor Landscape at a Glance
• Vendor Breakdown and Differentiators
• Vendor Comparison Matrix
• Key Evaluation Criteria for CIOs
• Final Takeaway

Why Distributed Hybrid Infrastructure Is Surging in 2025

Distributed hybrid infrastructure (DHI) is emerging as the de facto alternative to VMware in many enterprises. Gartner projects that by 2027, 50% of enterprises will pilot DHI platforms as replacements for VMware-based deployments, up from just 10% in 2024.

Drivers include:

• The fallout of Broadcom’s VMware acquisition, which disrupted pricing and support models.
• The need for flexible workload placement across on-premises, cloud, and edge.
• Growing compliance and sovereignty mandates that prevent all-in public cloud.
• Enterprise appetite for standardized hybrid operations across environments.

The Vendor Landscape at a Glance

Vendors are converging from two directions:

• Public cloud providers pushing into customer sites (AWS, Azure, Google, Oracle).
• Software-first players (Nutanix, VMware) extending hybrid platforms across environments.

Vendor Breakdown and Differentiators

AWS Outposts

• Extends AWS services into customer data centers.
• Strongest for enterprises already deep in AWS ecosystems.
• Challenges: limited service parity with AWS cloud; hardware lock-in.

Microsoft Azure Local

• Localized Azure regions and Azure Stack HCI for hybrid workloads.
• Strength: tight integration with Microsoft enterprise stack.
• Challenges: complexity in managing multiple Azure service tiers.

Google Distributed Cloud

• Offers Google Cloud services deployed on-premises or edge.
• Differentiator: strong AI/ML integration and Anthos Kubernetes support.
• Challenges: still maturing enterprise adoption compared to AWS/Azure.

Oracle Cloud@Customer

• Cloud services deployed in customer environments.
• Strong in regulated industries (finance, government).
• Challenges: narrower ecosystem compared to hyperscalers.

Nutanix Hybrid Cloud

• Software-first DHI approach.
• Differentiator: hyperconverged infrastructure and VMware alternative positioning.
• Challenges: needs strong partner ecosystem for global scale.

VMware (post-Broadcom context)

• Still widely deployed, but customer trust is shaken.
• Facing pricing pressure and CIO reevaluation of long-term fit.

Vendor Comparison Matrix

Key Evaluation Criteria for CIOs

• Service parity with public cloud platforms.
• Compliance readiness and sovereignty support.
• Workload portability across environments.
• Operational simplicity vs. ecosystem lock-in.
• Financial model (CapEx vs. OpEx flexibility).

Final Takeaway

The DHI market is no longer niche. AWS, Azure, Google, Oracle, and Nutanix are redefining how enterprises extend cloud services to on-premises and edge environments.

CIOs should treat 2025 as a strategic inflection point: whether replacing VMware, pursuing sovereignty, or standardizing hybrid ops, vendor choice will shape IT strategy for the next decade.