Bare Metal Cloud Market Size, Share with Focus on Emerging Technologies, Top Countries Data, Top Key Players Update, and Forecast 2028
The bare metal cloud market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 17.4% during the forecast period, to reach USD 19.1 billion by 2028 from USD 8.5 billion in 2023. The need for high-performance computing for big data and machine learning workloads is expected to drive the growth of the global bare metal cloud market.
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By service type, the security services segment is expected to grow at the highest CAGR during the forecast period.
Security services in a bare metal cloud environment are crucial for safeguarding data, applications, and infrastructure in a dedicated, high-performance computing environment. Bare metal cloud providers offer a range of security features designed to protect against a wide range of threats and vulnerabilities. The primary security feature of a bare metal cloud is isolation. Each physical server in a bare metal cloud is dedicated to a single customer, minimizing the risk of “noisy neighbor” issues and ensuring that sensitive data remains isolated from other tenants. Bare metal cloud security services often include features such as firewall management, intrusion detection and prevention systems (IDPS), distributed denial-of-service (DDoS) protection, and security monitoring and reporting. These services help businesses establish strong perimeter defenses, detect and respond to potential threats, and maintain visibility into their security posture.
By vertical, healthcare & life sciences verticals hold a larger market size during the forecast period.
Bare metal cloud technology is instrumental in enhancing healthcare cybersecurity. The sector faces heightened security challenges with the increasing digitization of patient records and sensitive medical data. Bare Metal Cloud’s isolated infrastructure reduces the risk of data breaches and ensures regulatory compliance, such as HIPAA, in the US. Furthermore, the scalability of the bare metal cloud is particularly beneficial for healthcare providers who need to accommodate fluctuating patient loads, as was evident during the COVID-19 pandemic when healthcare facilities rapidly scaled their IT infrastructure to meet surging demands. The healthcare industry invests vast amounts in medical technologies for enhanced patient care. By leveraging dedicated, high-performance servers, organizations in the healthcare industry can expedite medical research, diagnostics, and treatment planning, ultimately leading to better patient outcomes.
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Unique Features in the Bare Metal Cloud Market:
The availability of dedicated physical servers is one of the main distinctive characteristics of bare metal clouds. The performance of bare metal cloud users is stable and predictable since they have exclusive access to the entire server, unlike traditional cloud settings where resources are shared among several users.
High levels of security and isolation are offered by bare metal cloud solutions. The potential of “noisy neighbour” problems, where other tenants on the same physical server can affect your performance, is eliminated because there is no virtualization layer. This isolation improves security and compliance, making it appropriate for sectors with strict requirements for data protection.
High levels of personalization are available with bare metal cloud. Users have complete control over the server’s setup and can select individual CPUs, memory, storage, and networking choices to meet their particular workload needs. For applications that require a lot of resources, this level of flexibility is especially useful.
In the bare metal cloud environment, billing is frequently simple and consistent. In order to avoid the complications of metered billing that are frequent in virtualized cloud settings, users are often charged a flat amount based on the server’s characteristics and usage. The administration of costs and budgets is made easier by this simplicity.
Even though bare metal servers are physical, several vendors offer quick provisioning times. Thanks to automation and infrastructure management tools, users may swiftly install new servers as needed, frequently within minutes.
Major Highlights of the Bare Metal Cloud Market:
The providing of consumers with dedicated physical servers is one of its key differentiators. Contrary to conventional virtualized cloud setups, bare metal clouds give users full access to the entire server, assuring dependable and constant performance. Businesses and organisations with demanding high-performance workloads and resource-intensive applications will find this to be of great value.
Another key benefit of the bare metal cloud is isolation and security. The possibility of “noisy neighbour” problems, wherein other tenants on the same server can affect performance, is eliminated when there is no virtualization layer. This increased isolation improves security, making it a desirable choice for sectors like healthcare and finance that have strict data protection regulations.
Another noteworthy aspect of the bare metal cloud business is customization. The server’s characteristics can be freely customised by users to precisely match their workload needs. For businesses with specialised infrastructure requirements, this entails choosing particular CPUs, memory, storage, and networking solutions.
Bare metal cloud stands out due to its exceptional performance. Without the expense of virtualization, users may fully utilise the server’s resources, which makes it perfect for high-performance computing (HPC) activities like scientific simulations, data analytics, and rendering. Opportunities for enterprises and research disciplines that require a lot of computer power are made possible by this capability.
In the bare metal cloud industry, predictable billing procedures make financial administration easier. Users are frequently charged a flat fee based on the features and utilisation of the servers, doing away with the complications of metered pricing found in conventional cloud systems. For enterprises and organisations, budgeting is made simpler by this pricing transparency.
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Top Key Companies in the Bare Metal Cloud Market:
Major vendors in this market are based in North America, Europe, and Asia Pacific. IBM (US), Oracle (US), AWS (US), Lumen (US), and Rackspace (US) are among the leading players operating in the bare metal cloud market. These players have adopted various organic and inorganic growth strategies to strengthen their position in the market. These include partnerships, product launches, contracts, mergers and acquisitions, and new product development activities to expand their presence in the bare metal cloud market.
IBM
IBM provides maximum performance and a secure single tenancy to deliver high-quality, on-demand services to its customers rapidly. These servers have an essential role in the infrastructure mix for many companies due to their unique combination of performance and control. Organizations across the globe choose bare metal servers for fast automation and deployment. With its rapid provisioning and custom-based and SAP-certified bare metal servers, the company provides cloud virtual private networks to fit every workload. IBM operates a worldwide network of data centers, enabling customers to deploy bare metal servers in various geographic regions. This global presence ensures low-latency access and high availability for clients’ applications. In addition, IBM is renowned for its AI and analytics capabilities. Customers can leverage IBM’s AI and analytics solutions in conjunction with bare metal servers for data-intensive workloads, such as machine learning and big data analytics. IBM caters to industry verticals, including automotive, aerospace & defense, government, BFSI, healthcare, IT & telecom, and consumer goods & retail. Moreover, it has established a strong channel partner ecosystem by building partnerships.
Oracle
Oracle offers high-performance bare metal instances that provide dedicated physical servers to customers. These instances are optimized for performance-intensive workloads, making them suitable for various applications, including databases, analytics, and AI. Oracle’s bare metal instances are highly customizable, allowing customers to choose the CPU, memory, storage, and network configurations that best suit their specific needs. This flexibility enables users to tailor their infrastructure to match workload requirements precisely. In addition, Oracle continues to invest in cloud innovation, including automation, AI, and ML advancements. This commitment to innovation helps customers stay competitive in a rapidly evolving technology landscape. Oracle’s bare metal instances provide customer isolation, visibility, and control over dedicated servers optimized for various workloads. These servers are built on the Oracle Cloud platform, which leverages advanced technologies such as IoT, AI, and ML to help organizations process and analyze massive data sets and algorithms and make intelligent business decisions. The company caters to various verticals, including telecommunications, financial services, health, food & beverage, hospitality, life sciences, and retail. It also caters to a broad customer base across the Americas, Europe, Middle East & Africa, and Asia Pacific.
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