This paper presents an in-depth analysis of Post-Quantum Cryptography (PQC) and its impact on key management practices in cloud and hybrid environments. It identifies the key drivers for PQC transition, including NIST standardization efforts, compliance mandates, and evolving threat models, and outlines the technical and operational complexities organizations must address. These include challenges in algorithm integration, key size and performance trade-offs, HSM/KMS limitations, and the need for enhanced crypto-agility. The report highlights industry best practices for navigating this transition, such as maintaining cryptographic asset inventories, adopting hybrid cryptographic models, leveraging BYOK/external KMS architectures, and engaging cloud service providers proactively. It also stresses the importance of workforce enablement and continuous validation as organizations modernize their cryptographic infrastructure. Ultimately, the document provides a strategic and practical roadmap to help organizations plan for a secure and compliant future in the post-quantum world, ensuring resilience against both current and emerging cryptographic threats.




