This document discusses the potential for hybrid clouds and "mini pods" to help universities and colleges significantly reduce IT costs. It proposes creating local "mini pod" data centers at each university along with utilizing large, remote "industrial scale" data centers via the national JANET network. This hybrid cloud model could incrementally transition services to the cloud, allow staff to retain their jobs, provide an exit strategy if needed, and save over £100 million total by taking advantage of economies of scale at remote data centers. The JANET network is well positioned to act as a broker between universities and cloud providers to help achieve these cost savings.