Technology

Bare Metal Cloud Market size is set to grow by USD 19.10 billion from 2024-2028, Increasing online content with high internet penetration to boost the market growth, Technavio

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NEW YORK, Aug. 15, 2024 /PRNewswire/ — The global bare metal cloud market  size is estimated to grow by USD 19.10 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  32.14%  during the forecast period.  Increasing online content with high internet penetration is driving market growth, with a trend towards emergence of hyper-convergence technology. However, system integration and interoperability issues  poses a challenge. Key market players include Alibaba Group Holding Ltd., Amazon.com Inc., Bigstep Cloud Ltd., Dell Technologies Inc., E2E Networks Ltd., Equinix Inc., G2.com Inc., Internap Holding LLC, International Business Machines Corp., Heficed, Leaseweb Global BV, Limestone Networks Inc., Lumen Technologies Inc., NetApp Inc., Oracle Corp., Platform9 Systems Inc., Rackspace Technology Inc., Samsung Electronics Co. Ltd., Unitied Internet AG, and Zenlayer Inc..

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

End-user (BFSI, Government, IT and telecom, Healthcare, and Others), Type (Hardware and Service), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Region Covered

North America, Europe, APAC, South America, and Middle East and Africa

Key companies profiled

Alibaba Group Holding Ltd., Amazon.com Inc., Bigstep Cloud Ltd., Dell Technologies Inc., E2E Networks Ltd., Equinix Inc., G2.com Inc., Internap Holding LLC, International Business Machines Corp., Heficed, Leaseweb Global BV, Limestone Networks Inc., Lumen Technologies Inc., NetApp Inc., Oracle Corp., Platform9 Systems Inc., Rackspace Technology Inc., Samsung Electronics Co. Ltd., Unitied Internet AG, and Zenlayer Inc.

Key Market Trends Fueling Growth

Bare metal cloud solutions are gaining popularity among organizations due to their hyper-converged infrastructure, which combines storage, computing, and virtual computing technologies in a single X-86-based server. This approach reduces complexities in storage systems, optimizes space, and improves operational efficiency, speed, and agility. Advanced analytics is a new trend in business, helping companies understand data from various sources and gain insights into consumer behavior. Predictive analytics, a process of analyzing large data sets using advanced mathematics and statistical tools, eliminates errors and forecasts future scenarios. Hyper-converged storage in bare metal cloud supports improved analytics by providing a large unit of storage for business data. Dell Inc. And other leading vendors, such as IBM and Oracle, are investing in hyper-converged storage solutions using web-scale technologies and architecture. This technology is still in its early stages, but its benefits, such as simplified IT infrastructure and cost savings, make it an attractive option for large and medium-sized organizations. 

Bare Metal Cloud is a trending solution for businesses seeking high-performance computing without the overhead of virtualized cloud instances. This approach uses physical servers instead, providing clients with full control over their IT infrastructure. Bare Metal Cloud addresses offer cost-efficient benefits for large enterprises in sectors like IT & telecom, retail & consumer goods, and high-performance computing. Virtual networks ensure secure and reliable connectivity. Negative aspects include higher upfront costs and potential security risks. Networking, security, database, storage services are available. Compute services offer operational efficiency, load balancing, and risk analytics through statistical models and predictive analysis. Bare Metal Cloud is ideal for businesses dealing with complex simulations, AI, IoT, and edge computing. Factors like inflation and oil prices impact hardware components’ costs. Multi-tenant environments require robust security measures to prevent breaches. Overall, Bare Metal Cloud offers a balance between technological aspects and business information, allowing for accurate estimations in today’s dynamic market. 

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Market Challenges

In today’s business landscape, the adoption of advanced technologies in various industries, such as BFSI, IT and telecom, healthcare, and media, is on the rise. However, this technological evolution brings about system integration and interoperability challenges when organizations attempt to integrate their current IT systems with new cloud infrastructure. Vendors must offer unified bare metal cloud solutions to help businesses manage their cloud infrastructure while ensuring seamless integration with their existing IT systems. Technical glitches during operations can lead to significant costs and reduced operational efficiencies. Integration issues often arise when organizations update their IT systems or merge IT infrastructure from acquisitions. Efficiently integrating bare metal cloud systems and advanced technologies with traditional IT infrastructure necessitates the involvement of an experienced IT team.Businesses face numerous challenges in today’s digital landscape, including the rising costs of cloud computing, inflation, and fluctuating oil prices. Traditional virtualized cloud instances on shared resources can’t always provide the required performance for high-performance computing, complex simulations, or edge computing in retail & consumer goods, AI, Big Data, mobility, social media, and IoT. Security breaches in multi-tenant environments are also a concern. Bare Metal Cloud offers a solution by providing businesses with dedicated physical servers, allowing them to maintain control over their OS, hardware components, and virtualization infrastructure. With superior performance, reliability, adaptability, and scalability, Bare Metal Cloud services from Equinix, Packet, Oracle Cloud, and others enable businesses to meet their unique needs while complying with trade regulations.

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Segment Overview 

This bare metal cloud market report extensively covers market segmentation by

End-user 1.1 BFSI1.2 Government1.3 IT and telecom1.4 Healthcare1.5 OthersType 2.1 Hardware2.2 ServiceGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 BFSI-  BFSI firms have been early adopters of Infrastructure-as-a-Service (IaaS) like hosted bare metal cloud services to minimize IT expenses. The financial industry’s shift to IaaS-based business tools is driven by the need for data security during online transactions and access violations. With the growing trend of online banking, insurance, and blockchain integration, high-performance proactive processing over a cloud network is essential. The BFSI sector’s focus on multi-channel interactions, such as Internet banking and mobile banking, necessitates scalable storage infrastructure. Bare metal cloud servers offer high-performing infrastructure on demand, with high random-access memory (RAM) and central processing unit (CPU) capabilities. These benefits make bare metal cloud an attractive option for BFSI players, driving the segment’s growth. Additionally, the increasing use of smart devices for commercial transactions necessitates mobility and digitization, further boosting the demand for bare metal cloud solutions.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022)  – Download a Sample Report

Research Analysis

Bare metal cloud is a type of infrastructure-as-a-service (IaaS) offering in the cloud computing market that provides access to physical servers without the use of virtualized cloud instances or hypervisors. This approach offers improved performance, security, and control over hardware components compared to traditional virtual machines (VMs). Bare metal cloud servers are ideal for running resource-intensive workloads, such as artificial intelligence (AI) and big data analytics, as well as for IoT and mobility applications. Inflation and oil prices can impact the cost of hardware components, but bare metal cloud services offer flexibility and adaptability, allowing businesses to scale resources up or down as needed. A central dashboard enables IT professionals to manage and monitor their servers, ensuring reliability and performance. Shared resources can be utilized for cost savings, while each server remains a dedicated physical machine for enhanced security. Bare metal cloud services cater to industries and applications that require high levels of customization, low latency, and strict compliance regulations. They offer an alternative to traditional data centers and virtualized cloud environments, providing businesses with the agility and flexibility needed to meet the demands of modern digital transformation.

Market Research Overview

Bare Metal Cloud: The Next Frontier in Cloud Computing Bare Metal Cloud is a revolutionary approach in cloud computing that offers businesses the benefits of cloud services without the use of virtualized cloud instances. Instead, it utilizes physical servers, providing high-performance computing capabilities for complex simulations, AI, and IoT applications. This technology addresses the needs of industries requiring low-latency, high-security, and high-performance computing, such as retail & consumer goods, IT & telecom, and large enterprises. Bare Metal Cloud servers offer a central dashboard for performance, security, and shared resources, allowing IT professionals to maintain control while ensuring reliability, adaptability, and scalability. Bare Metal Cloud addresses the cost-efficient benefits of cloud services while mitigating negative aspects like security breaches and trade regulations. It offers networking, security, database, and storage services, making it an ideal solution for businesses dealing with Big Data, mobility, social media, and AI cloud offerings. Bare Metal Cloud’s technological aspects include lightweight hypervisors, virtual machines, and server services, providing operational efficiency, load balancing, and risk analytics through statistical models and predictive analysis. With its ability to offer cost savings, control, and performance, Bare Metal Cloud is an essential consideration for businesses in today’s data-driven economy.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userBFSIGovernmentIT And TelecomHealthcareOthersTypeHardwareServiceGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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