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CHICAGO, April 21, 2021 /PRNewswire/ -- According to a new market research report "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", published by MarketsandMarkets, the 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.

Bare metal cloud servers are non-virtualized cloud alternatives, primarily implemented to enhance storage capacity and data-intensive computing operations and deliver high-performance workloads across heterogeneous platforms. These servers combine the elasticity and utility of public clouds with accuracy in operations, enabling stringent control and security and predictability of the on-premises infrastructure. These servers are instrumental in delivering high performance, high availability, and cost-effective infrastructure services, along with operations of a high degree of Platform as a Service (PaaS) and Software as a Service (SaaS) applications. Some of the bare metal cloud services include compute, networking, database, security, storage, professional, and managed services.

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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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North America to dominate the global cloud system management market in 2020

North America is the dominant market for Bare Metal Cloud Market due to the presence of a large number of end users who are technology aware and early adopters of servers that are enriched with new capabilities. Countries evaluated in North America are the US and Canada. The region holds a market share of 55.1% in 2020 for the Bare Metal Cloud Market, and the demand for bare metal servers is expected to be high in the near future. The primary factors for large-scale adoption are the inclination of organizations toward SaaS-based offerings and adoption of digital business strategies. The presence of well-established bare metal cloud vendors such as IBM, Oracle, Lumen, and Internap, which have a strong set of product portfolios and robust partner ecosystems, is another reason for the high adoption of bare metal cloud in the region.

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.

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Bare Metal Cloud Market worth $16.4 billion by 2026 - Exclusive Report by MarketsandMarkets - PRNewswire