Bare Metal Cloud Market
Rapidly Increasing Data Traffic to Fuel Bare Metal Cloud Market Growth During Forecast Period
Bare metal cloud services are a type of infrastructure as a service (IaaS) wherein dedicated hardware, housed and managed by a service provider, is rented to the provider’s client. Bare metal is different from other cloud-based services, in context of hosting framework since it doesn’t share hardware resources with other users/tenants. Thus, bare metal differs from traditional cloud deployments since bare metal cloud servers provide enhanced flexibility, security, and control. With a bare metal cloud service, the users get the predictability and control of on-premise hardware with the performance and scalability of a cloud computing platform. Like a traditional in-house server, the enterprise has direct access to the operating system and system hardware. Applications are installed and run directly on the rented physical hardware, and since overheads pertaining to running a hypervisor is associated, a bare metal solution is able to provide better performance and lower latency than a virtual machine. Rising usage of connected devices, easy access to internet, and decreasing cost of internet services boost the need for data storage. Additionally, the surging adoption of big data analytics and cloud-based services, including online content, apps, videos, and social media, fuels the requirement for cloud infrastructure. According to Telefonaktiebolaget LM Ericsson’s data on ‘Mobile data traffic outlook’, the total global mobile data traffic, excluding fixed wireless access (FWA), reached around 93 Exabyte (EB) per month at the end of 2022 and is anticipated to reach 392 EB per month by the end of 2028. In addition, by 2027, all mobile data traffic growth will come from 5G, as 4G traffic declines.
Moreover, the deployment of 5G network is significantly increasing the volume of data traffic, as 5G offers higher data volumes and lower latency than 4G and other networks. According to Cisco’s report, 5G is anticipated to support more than 10% of mobile connections across the world by the end of 2023, with an average speed of 575 Mbps. Due to increased data traffic, businesses and enterprises seek services to store, process, and distribute their data efficiently and reliably, contributing to the need for cloud services and data center space. Several industries are exploring cloud offerings and reaping the benefits of data center services to support their business expansion requirements. These developments are directly affecting the adoption of digital technologies and fueling the data volume, thereby resulting in the shift toward bare metal cloud service to handle the increased data volume coupled with the benefits of saving cost. Thus, increased data traffic fosters the bare metal cloud market growth.
Bare Metal Cloud Market: Segment Overview
Based on service type, the bare metal cloud market is segmented into networking services, storage & database services, compute services, security services, and others. The storage & database services segment held the largest bare metal cloud market share in 2022 and is assessed to register the highest CAGR in the bare metal cloud market during the forecast period. Based on enterprise size, the bare metal cloud market is bifurcated into SMEs and large enterprises. The large enterprises segment held a larger bare metal cloud market share in 2022. However, the SMEs segment is anticipated to register a higher CAGR in the bare metal cloud market during the forecast period. By application, the bare metal cloud market is segmented into BFSI, manufacturing, government, retail, healthcare, IT & telecommunications, and others. The IT & telecommunications segment held the largest bare metal cloud market share in 2022 and is also estimated to register the highest CAGR in the bare metal cloud market during the forecast period. By region, the bare metal cloud market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
In 2022, North America held the largest global bare metal cloud market share, followed by Europe and APAC. A strong European economy and surging demand for cloud services in the region are major factors primarily driving the demand for bare metal cloud in Europe. The demand is primarily fulfilled by the colocation service providers that hold the larger market share in Europe. Increasing need among enterprises for reliable and secure cloud services is the major factor bolstering the bare metal cloud market growth. Also, investments in these technologies are expected to increase significantly in the coming years. Many big companies have opted for cloud solutions or are planning to launch their cloud computing services in Europe due to factors such as establishment of General Data Protection Regulation (GDPR), climatic conditions of the region, government support, and increasing business in Europe to provide the best uptime and secure service delivery. In Europe, industries such as BFSI, IT & telecom, and manufacturing are achieving sustainability goals by implementing cloud computing, IoT, edge computing, AI, and other digital technologies. The European Union supports the development of several technological solutions in Europe with research and innovation actions under the Horizon 2020 Programme. European Union-funded projects accelerate the adoption of digital solutions among businesses to foster their business growth. All these factors support the growth of the bare metal cloud market size in Europe.
Bare Metal Cloud Market: Competitive Landscape and Key Developments
Amazon.com Inc, Microsoft Corporation, Alphabet Inc, IBM Corporation, Oracle Corporation, Rackspace Service Type Inc, Lumen Technologies Inc, Internap Holding LLC, Equinix Inc, Limestone Networks Inc, Scaleway SAS, Bigstep Inc, and Cyxtera Technologies Inc are among the key players operating in the bare metal cloud market. Several other leading bare metal cloud market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed bare metal cloud market insights, which help the key players strategize their market growth. A few developments are mentioned below:
- In August 2023, Cyxtera Technologies, Inc. and Hewlett-Packard Development Company, L.P. collaborated to help customers accelerate and simplify their hybrid IT strategies. Cyxtera Technologies, Inc. was leveraging the HPE GreenLake edge-to-cloud platform to support Enterprise Bare Metal solutions.
- In March 2023, Amazon Elastic Compute Cloud (Amazon EC2) C6in instances, Amazon EC2 M6in and M6idn instances, and Amazon EC2 R6in and R6idn instances were made available in bare metal size.
- In February 2023, Equinix, Inc., a digital infrastructure company, announced to continue the expansion of its Equinix Metal hubs in Asia Pacific. Equinix’s distributed Bare Metal-as-a-Service was made available in Osaka and Melbourne, apart from existing access in Hong Kong, Seoul, Singapore, Sydney, and Tokyo.
