This document discusses hybrid clouds and mini pods that were presented at a JISC conference. It defines cloud computing and discusses the difference between commodity and complexity IT. Large organizations are creating private clouds by consolidating their data centers and applications to reduce costs. The document proposes a hybrid cloud model for Loughborough University using a cooperative cloud and local "mini-pods" to de-risk moving to the cloud. It suggests cheap virtual servers via a hybrid cloud could be a "killer app" for higher education that allows for cost savings while maintaining performance, security and staff roles. Standards for VMs and use of JANET brokerage are also discussed.