The benefit of cloud integration is that you do not need to install any software on your environment. The information is exchanged between SAP and middleware which is hosted on the cloud. However, in case of Hybrid integration, business data never goes out of your environment. The transformation rules and data mapping is, howver, done in the cloud.
Integration platforms like APPSeCONNECT offer you both hybrid and cloud integration options. This gives you full control on your integration with flexible mode of integration deployment – on cloud or on premise / hybrid.