1.3 Cloud Hybrid Search
Hybrid search allows users to query one index in the cloud which includes crawled data from SharePoint 2016 and Office 365 .
How it works
If you enable cloud hybrid search :
- The Cloud Search Service Application indexes on-premise content and transfers it encrypted from the server to the Office 365 search index.
- Users in Office 365 can query one cloud index including data from SharePoint 2016 and Office 365.
- User in SharePoint 2016 can query the same cloud index including data from SharePoint 2016 and Office 365.
- If a user opens in Office 365 a link to a search result stored in SharePoint 2016 the user needs to be logged on to where the content is stored or you need a VPN / Reverse Proxy.
- Includes unified search results, search relevance ranking and refiners.
- Users only see content they have access to (requires Active Directory on-premise / Office 365 sync).
- On-premise content remains secure in SharePoint 2016.
- Get the newest search experience with Office 365 without upgrading SharePoint 2016.
It’s important to understand that sometimes you are not allowed to store sensitive data in the cloud e.g. patient data. Although crawled documents and content stay in the on-premise SharePoint farm properties and metadata are sent to the cloud index:
"The content that is passed from onpremises to the azure cloud search connector (SCS) consists of crawled properties, keywords, acls, tenant info and some other metadata about the item. This is encrypted on premises using a key supplied by the SCS and transmitted to the endpoint in Azure. Once there it is stored in an encrypted blob store and queued for processing. We retain the encrypted package in the blob store for use should we need to issue a content recrawl. The encrypted object is not the document though, it is just a parsed and filtered version that makes sense to the search engine." 
If patient data is included in the properties or metadata you may violate policies.
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