Educational institutions throughout the World have become highly dependent on information technology for their teaching-learning, service delivery and business requirements. Procuring and maintaining a wide range of hardware and software require substantial, ongoing investment and the skills to support them. In the current financial crisis and being challenged by growing needs, universities are facing problems in providing necessary information technology (IT) support for educational, research and development activities. The objective of this paper is to find alternatives to the use of IT, while leading universities try improve agility and obtain savings. The paper discusses the advantages of cloud computing for educational institutions, the limitations of current IT utilization in Ethiopian Higher Education institutions. It also discusses alternative solutions to solve the current IT utilizations limitations in Ethiopian Higher Education Institutions. The research finding shows that Cloud Computing is the better ICT utilization mechanism for Education institutions teaching-learning and service delivery requirements, for it enables wise and strategic use of technology which significantly reduces cost. Accordingly, when the Proposed Hybrid Cloud Computing model is implemented, it will have significant contribution to the country in different aspects.