Bare Metal Cloud Market Analysis

Bare Metal Cloud Market Analysis

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Based on deployment model, the public cloud segment accounted for 40% of the market share in 2023, as it aligns with the evolving needs of businesses. Public cloud providers are increasingly offering bare metal cloud options to those users requiring dedicated & high-performance servers; this is also allowing these providers to benefit from the scalability and global reach of public cloud.
 

This combination allows organizations to operate demanding applications & workloads with agility and in a cost-effective manner. As a result, the adoption of public-cloud-based bare metal services is projected to expand, serving as an attractive solution for various use cases.
 

Based on organization size, the large enterprises segment held over 60% of the bare metal cloud market share in 2023, due to their complex IT requirements. These organizations often require dedicated & High-Performance Computing (HPC) resources to support data-intensive applications, AI/ML workloads, and critical business operations.
 

Bare metal cloud offerings provide the control & scalability needed to accommodate these demands. Large enterprises are also increasingly adopting hybrid & multi-cloud strategies, integrating bare metal cloud solutions for specific use cases, enhancing performance, and maintaining flexibility. As such, the adoption of bare metal cloud services is estimated to increase among the large enterprises seeking optimized infrastructure solutions.
 

North America bare metal cloud market registered around 30% of the revenue share in 2023. The region houses a robust technology ecosystem and a thriving enterprise landscape with diverse industry verticals. For instance, in April 2023, IBM announced the full availability of its LinuxONE bare metal servers under an Infrastructure-as-a-Service (IaaS) model, which can be rented in the cloud. Customers can rent these dedicated physical servers in the cloud, providing HPC resources with full control & security. This move enhanced IBM's cloud portfolio, allowing it to cater to the diverse workload needs of businesses.
 

Large enterprises, SMBs, and startups are increasingly adopting bare metal cloud solutions to meet their High-Performance Computing (HPC) requirements. Additionally, the growing demand for edge computing, the need for secure & compliant infrastructure, as well as the presence of major cloud service providers are contributing to the North America market growth.