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Bare Metal Cloud Market Size, Status, Top Emerging Trends, Growth and Business Opportunities 2026

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Bare Metal Cloud Market Size, Status, Top Emerging Trends, Growth and Business Opportunities 2026

September 15
21:32 2023
Bare Metal Cloud Market Size, Status, Top Emerging Trends, Growth and Business Opportunities 2026
IBM (US), Oracle (US), Lumen (US), Internap (US), Rackspace (US), AWS (US), Dell (US), Equinix (US), Google (US), Microsoft (US), Alibaba Cloud (China), Scaleway (France), Joyent (US), HPE (US), OVHcloud (France), Limestone Networks (US), Media Temple (US), Bigstep (UK), Zenlayer (US), and phoenixNAP (US).
Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Security, Storage, Professional, and Managed), Organization Size, Vertical (BFSI, Manufacturing, Healthcare and Life Sciences, and Government), and Region – Global Forecast to 2026

The global Bare Metal Cloud Market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 24.1% during the forecast period, to reach USD 16.4 billion by 2026 from USD 4.5 billion in 2020. Major factors that are expected to drive the growth of the bare metal cloud market include increasing critical need for reliable load balancing of data-intensive and latency-sensitive operations, necessity of non-locking compute and storage resources, increased usage of IoT platforms and devices to manage workload with high performance computing, elimination of overheads caused due to adherence to compliance, convergence of technologies such as AI, IoT, and analytics, and advent of fabric virtualization.

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The market is expected to be driven by the growing need for reliable load balancing of data-intensive and latency-sensitive operations

Load balancing improves the distribution of additional workloads across the bare metal cloud servers to enable smoother functioning and allocation of resources to multiple processes. Load balancing solutions enable ease in configurability and flexibility to manage traffic and resource usage across server nodes in the real-time end-user environment. Hence, it becomes critical to deploy reliable load balancing operations over the cloud. The bare metal infrastructure vendors primarily focus on offering a single-tenant architecture wherein multiple resources are clubbed together for dedicated instances of data-intensive operations resulting in delivering higher performance. Hypervisors in a virtualized environment consume higher server-side processing power causing a tradeoff for enterprises to adjust between latency hit operations and low-cost cloud compute infrastructure. The custom-based lightweight hypervisors have been offered as an alternative to bare metal offerings since public cloud owners have been creating dedicated instances offering a greater share of resources to clients whose data migration costs from the public cloud are significant.

Increased necessity of non-locking compute and storage resources

One of the core issues that remains with public cloud workloads is sharing of resources with multiple processes making the throughput of the process relatively less. Data-intensive operations and high-performance workloads require dedicated storage and compute resources in a highly secured environment to enable them to achieve desired results. Additionally, bare metal cloud services offer a flexible pay-per-use option for the efficient utilization of compute and storage services, and ease in termination of SLA without incurring significant infrastructural costs make it a viable option for enterprises to deploy. Sharing of compute resources and the occurrence of a deadlock situation among certain processes are also a few of the critical issues faced by organizations in their daily operations. Bare metal cloud servers address these issues through offering non-locking of compute and storage resources to deliver performance-intensive workloads in definitive complexity with higher throughput yield.

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Unique Features in the Bare Metal Cloud Market:

With dedicated physical servers available instead of virtualized instances, the Bare Metal Cloud Market distinguishes out for its distinctive characteristics. This essential quality guarantees reliable, high-performance computing resources and removes the difficulties posed by multi-tenant virtual environments.

Users gain from having complete control and customization over their bare metal servers since they may modify the hardware setups, operating systems, and software stacks to suit particular needs. For workloads and applications that require a lot of resources, this flexibility is very beneficial.

Bare Metal Cloud is a desirable option for businesses with strict compliance and security requirements because security and isolation are of the utmost importance there. In comparison to shared virtual environments, dedicated servers pose less security threats, resulting in a safe working environment.

Its applicability for High-Performance Computing (HPC) workloads, scientific research, and applications requiring significant computational capacity is one of its distinguishing qualities. Bare Metal Clouds maximise the performance of specialised hardware, delivering outstanding results for taxing jobs.

Bare metal servers are known for their predictable performance, which provides a constant computing environment without resource contention. For applications with strict performance requirements, where performance consistency is crucial, this predictability is a considerable advantage.

Major Highlights of the Bare Metal Cloud Market:

Major aspects that define the Bare Metal Cloud Market are numerous. It primarily provides dedicated physical servers, in sharp contrast to virtualized instances, guaranteeing excellent performance and isolation. Users gain from total flexibility and control over these servers, which enables customised setups to fulfil specific application requirements. In particular, resource-intensive jobs benefit from this level of flexibility.

The dedicated nature of bare metal servers lowers security concerns, making them an appealing option for organisations with strict compliance and security requirements. Security is a top consideration in this industry. Bare Metal Clouds also excel in the field of High-Performance Computing (HPC), utilising the full capacity of specialised hardware to provide outstanding performance.

Bare metal servers are known for their stable and predictable performance since virtual instances compete for resources with them. Applications with high performance demands depend on this reliability greatly. By enabling speedy deployment without the usual delays in hardware acquisition, rapid provisioning significantly increases the desirability of these servers.

Another important aspect is scalability, which enables companies to grow horizontally by putting in more physical servers to handle changing workloads. In use cases where performance and customisation are critical, such as database hosting, big data analytics, gaming infrastructure, and content delivery networks, bare metal clouds are designed to meet the needs of the customers.

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Top Key Companies in the Bare Metal Cloud Market:

The bare metal cloud market includes major vendors, such as IBM (US), Oracle (US), Lumen (US), Internap (US), Rackspace (US), AWS (US), Dell (US), Equinix (US), Google (US), Microsoft (US), Alibaba Cloud (China), Scaleway (France), Joyent (US), HPE (US), OVHcloud (France), Limestone Networks (US), Media Temple (US), Bigstep (UK), Zenlayer (US), and phoenixNAP (US). The major players have implemented various growth strategies to expand their global presence and increase their market shares. Key players such as IBM, Oracle, Lumen, Internap and Rackspace have majorly adopted many growth strategies, such as new product launches, acquisitions, and partnerships, to expand their product portfolios and grow further in the bare metal cloud market.

IBM has a strong presence in the bare metal cloud market. It focuses on strengthening its product portfolio by launching new and advanced solutions in five categories: analytics, data, cloud, security, and AI. IBM helps customers streamline business processes and enhance data-driven decision-making capabilities. It offers a broad product portfolio that includes Analytics, Intelligent Automation, Cloud Computing, Blockchain, Business Operations, IT Infrastructure, Mobile Technology, Security, Software Development, and Supply Chain Management. Under the product category of bare metal cloud, IBM offers fully dedicated servers to provide maximum performance and secure, single tenancy. It caters to various verticals, including automotive, telecommunications, financial services, health, aerospace and defense, insurance, life sciences, and retail. It nurtures an ecosystem of global business partners operating in more than 170 countries. IBM research constitutes the largest industrial research organization in the world, with 12 labs across 6 continents spread across the Americas, Europe, MEA, and APAC.

Rackspace is a leading provider of bare metal cloud servers. It focuses on strengthening its product portfolio by launching new and advanced solutions in the cloud, applications, data, and security. Its bare metal private cloud is a dedicated, secure environment that offers customized compute, storage, and connectivity. Its bare metal services offer servers on an on-demand basis, thereby following a pay-as-you-go pricing model. It provides professional, consulting and advisory, and managed services to its customers. The company caters its solutions across the globe to various verticals, including financial, healthcare, manufacturing, education, oil and gas, media and entertainment, automotive and transportation, food and beverage, travel and hospitality, and retail. It also caters to a broad customer base of about 117,000 across 120 countries. It operates globally through its offices based in the Americas, Europe, MEA, and APAC.

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