HOME Top Market Reports Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Identity & Access Management, Volume & Object Storage, Professional, and Managed), Professional Service Type, Organization Size, Vertical, and Region - Global Forecast to 2021

Bare Metal Cloud Market by Service Type (Compute, Networking, Database, Identity & Access Management, Volume & Object Storage, Professional, and Managed), Professional Service Type, Organization Size, Vertical, and Region - Global Forecast to 2021

By: marketsandmarkets.com
Publishing Date: January 2017
Report Code: TC 4856

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The bare metal cloud market size is estimated to grow from USD 0.87 Billion in 2016 to USD 4.71 Billion by 2021, at a CAGR of 40.1% from 2016 to 2021.

Objectives of the study:

The main objective of this report is to define, describe, and forecast the global bare metal cloud market on the basis of components that include service types such as compute services, networking services, database services, identity & access management services, volume & object storage services, professional services, and managed services, along with organization size, verticals, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report attempts to forecast the market size with respect to the five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, and new product developments in the bare metal cloud market.

Research Methodology:

The research methodology used to estimate and forecast the bare metal cloud market begins with the collection and analysis of data on key vendor revenues through secondary research such as annual reports & press releases, investor presentations of companies, conferences, and associations such as IEEE International Conference on High Performance and Smart Computing, NexGen Cloud Conference, and Cloud Foundry Summit, white papers such as IEEE conference paper on benchmarking bare metal cloud servers for High-Performance Computing (HPC) applications, technology journals, certified publications, and articles from recognized authors, directories, and databases. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size of the global bare metal cloud market from the revenue of the key bare metal cloud service providers and metal-as-a-service providers in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary is depicted in the figure given below:

Bare Metal Cloud Market

To know about the assumptions considered for the study, download the pdf brochure

The bare metal cloud ecosystem comprises vendors providing bare metal cloud solutions and services to their commercial clients. Companies such as IBM Corporation (U.S.), Oracle Corporation (U.S.), CenturyLink, Inc. (U.S.), Internap Corporation (U.S.), and Rackspace Hosting, Inc. (U.S.) have adopted new partnerships, agreements, and collaborations as their key strategy to enhance their market reach. This strategy accounted for the largest share of the total strategies adopted by the market players.

Key Target Audience

  • Bare metal cloud providers
  • Application developers
  • Managed service providers
  • Third party system integrators
  • Metal-as-a-service providers
  • Bare metal hardware vendors
  • Regulatory agencies
  • Government

“Study answers several questions for the stakeholders, primarily which market segments to focus in next two to five years for prioritizing the efforts and investments”.

Scope of the Report

The research report segments the bare metal cloud market into the following submarkets:

By Service Type

  • Compute services
  • Networking services
  • Database services
  • Identity and access management services
  • Volume and object storage services
  • Professional services
  • Managed services

By Professional Service Type:

  • Business consulting services
  • Implementation services
  • Training and support services

By Organization Size:

  • Small and medium-sized enterprises
  • Large enterprises

By Vertical:

  • Banking, financial services, and insurance
  • Government
  • IT and telecommunication
  • Healthcare
  • Retail
  • Manufacturing
  • Others

By Region:

  • North America
  • Europe
  • APAC
  • MEA
  • Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

  • Further breakdown of the MEA market
  • Further breakdown of the Latin America market

Company Information

  • Detailed analysis and profiling of additional market players

Critical need for reliable load balancing of data-intensive and latency-sensitive operations to drive the global bare metal cloud market to USD 4.71 billion by 2021

Bare metal cloud servers are non-virtualized cloud alternatives, primarily implemented to enhance the storage capacity, and data-intensive computing operations, and to deliver high performance workloads across heterogeneous platforms. These servers combine the elasticity and utility of public clouds with the accuracy in operations, enabling stringent control, along with 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 high degree of Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) applications. A bare metal cloud server is dedicated to a or a single tenant, using a subscription model of pricing, depending upon the type of server configuration specified by the tenant and delivers it through Metal-as-a-Service (MaaS) model. In the bare metal cloud, workloads are deployed onto servers, which are pre-configured with a suitable Operating System (OS), matching to the specifications of the client inclusive of storage requirements in accordance with performance capacity. Bare metal cloud is primarily segregated into five different types of services, such as, compute services, networking services, Identity and Access Management (IAM) services, database services, and volume & object storage services. Compute services includes mission-critical applications, performs data-intensive computing operations, large Random Access Memory (RAM) & Non-Volatile Memory express (NVMe), and Solid State Drives (SSDs).

The rapid urbanization, technological advancements, upsurge in smart devices, and high use of complex customer data are driving the data-intensive and latency sensitive computing operations in commercial enterprises. These multifaceted operations create heavy load on traditional storage devices causing latency and thereby resulting in low throughput. Moreover, it becomes critical to manage and cope with the associated computing, networking, and database needs required for processing heavy workloads on a SaaS based model. 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 allow 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 cloud.

Rise in need for bare metal cloud for big data, DevOps, microservices, and batch processing creates major opportunities in the market

Increase in importance of data capture, data curation, search, sharing, storage, transfer, visualization, and querying, enabled big data technology. These data sets are very large and complex, due to which traditional data processing applications and cloud infrastructure are not adequate to deal with. Higher degree of compute operations for large datasets requires significant processing power and storage, which cannot be offered by traditional virtualized cloud infrastructure. The advent of artificial intelligence will boost the deployments of bare metal servers across multitude of vertical markets attributed to the fact that AI requires large data sets ad significant processing and I/O power. DevOps, institutes an environment in which, building, testing, and releasing software can happen frequently, rapidly, securely, and reliably. DevOps also upholds a set of processes and methods for the communication and collaboration between development, QA, and IT operations. These DevOps can be effectively practiced with the help of specific software applications and Architecturally Significant Requirements (ASRs), such as, deployment ability, modifiability, testability, and monitoring ability. Adoption of bare metal infrastructure in DevOps can significantly reduce the time to develop and deploy an application and at the same time incorporating requisites for quality management and strategic business initiatives alignment.

Microservices is a specialized implementation approach for Service-Oriented Architectures (SOA), which are used to build flexible and independently deployable software systems. Specialized services in microservices communicate with each and over a network, to achieve a specific goal or objective. Adoption of bare metal servers in creating microservices will result in faster processing of applications and processes across heterogeneous platforms and OS by just installing single agent to do the latter without incurring a VM tax. Bare metal services can easily fulfill such high-performance needs. Additionally, batch processing applications such as Apache Hadoop was designed to handle the complex and critical processes pertaining to large datasets. Most of the bare metal vendors offer higher computing power and storage resources for processing of large datasets across applications and multiple heterogeneous platforms.

Market Dynamics

Bare Metal Cloud Market

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primary Interviews
    2.2 Market Size Estimation
    2.3 Market Breakdown and Data Triangulation
    2.4 MnM Dive Vendor Comparison Methodology
    2.5 Matrix Description
    2.6 Assumptions

3 Executive Summary (Page No. - 28)

4 Premium Insights (Page No. - 32)
    4.1 Attractive Market Opportunities in the Market
    4.2 Market Top Three Growing Verticals
    4.3 Market By Region and Service Type
    4.4 Bare Metal Cloud Market
    4.5 Lifecycle Analysis, By Region, 2016

5 Market Overview (Page No. - 35)
    5.1 Market Segmentation
           5.1.1 By Service Type
           5.1.2 By Professional Service Type
           5.1.3 By Organization Size
           5.1.4 By Vertical
           5.1.5 By Region
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Critical Need for Reliable Load Balancing of Data-Intensive and Latency Sensitive Operations
                    5.2.1.2 Necessity of Non-Locking Compute and Storage Resources
                    5.2.1.3 Advent of Fabric Virtualization
                    5.2.1.4 No Noisy Neighbors and Hypervisor Tax
                    5.2.1.5 Decommissioning of Workloads After Termination of Service Level Agreements (SLAS)
           5.2.2 Restraints
                    5.2.2.1 Stringent Cloud Regulations
                    5.2.2.2 Lightweight Hypervisors
           5.2.3 Opportunities
                    5.2.3.1 Bare Metal Cloud for Big Data and Devops Applications
                    5.2.3.2 Bare Metal Cloud for Microservices and Batch Processing Applications
                    5.2.3.3 Growing Interest in Open Compute Project (OCP)
           5.2.4 Challenges
                    5.2.4.1 Premium Pricing Model
                    5.2.4.2 Hindrances Faced in the Bare Metal Restore

6 Industry Trends (Page No. - 43)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Strategic Benchmarking

7 Bare Metal Cloud Market Analysis, By Service Type (Page No. - 45)
    7.1 Introduction
    7.2 Compute Services
    7.3 Networking Services
    7.4 Database Services
    7.5 Identity and Access Management Services
    7.6 Volume and Object Storage Services
    7.7 Professional Services
           7.7.1 Business Consulting Services
           7.7.2 Implementation Services
           7.7.3 Training and Support Services
    7.8 Managed Services

8 Bare Metal Cloud Market Analysis, By Organization Size (Page No. - 55)
    8.1 Introduction
    8.2 Small and Medium Enterprises
    8.3 Large Enterprises

9 Bare Metal Cloud Market Analysis, By Vertical (Page No. - 59)
    9.1 Introduction
    9.2 Banking, Financial Services, and Insurance
    9.3 Government
    9.4 Healthcare
    9.5 Retail
    9.6 Manufacturing
    9.7 IT and Telecom
    9.8 Others

10 Geographic Analysis (Page No. - 70)
     10.1 Introduction
     10.2 North America
     10.3 Europe
     10.4 Asia-Pacific
     10.5 Middle East and Africa
     10.6 Latin America

11 Competitive Landscape (Page No. - 89)
     11.1 Overview
     11.2 Competitive Situations and Trends
             11.2.1 Agreements, Partnerships, and Collaborations
             11.2.2 New Products/Service Launches
             11.2.3 Mergers and Acquisitions
             11.2.4 New Contracts
     11.3 MnM Dive: Bare Metal Cloud Vendor Scorecard
             11.3.1 MnM View

12 Company Profiles (Page No. - 98)
     12.1 Introduction
(Overview, Financials, Products & Services, Strategy, and Developments)*
     12.2 IBM Corporation
     12.3 Oracle Corporation
     12.4 Centurylink Incorporation
     12.5 Rackspace Hosting, Incorporation
     12.6 Internap Corporation
     12.7 Packet

*Details on Overview, Financials, Product & Services, Strategy, and Developments Might Not Be Captured in Case of Unlisted Companies.

13 Key Innovators (Page No. - 117)
     13.1 Bigstep
             13.1.1 Business Overview
     13.2 Dell Technologies, Inc.
             13.2.1 Business Overview
     13.3 Scaleway Incorporation
             13.3.1 Business Overview
     13.4 Spotinst
             13.4.1 Business Overview
     13.5 Joyent, Incorporation
             13.5.1 Business Overview
     13.6 Storm
             13.6.1 Business Overview

14 Appendix (Page No. - 122)
     14.1 Industry Experts
     14.2 Recent Developments
     14.3 Discussion Guide
     14.4 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.5 Introducing RT: Real-Time Market Intelligence
     14.6 Available Customizations
     14.7 Related Reports
     14.8 Author Details


List of Tables (67 Tables)

Table 1 Bare Metal Cloud Market Size and Growth Rate, 2014–2021 (USD Million, Y-O-Y %)
Table 2 Market Size, By Service Type, 2014–2021 (USD Million)
Table 3 Compute Services: Market Size, By Region, 2014–2021 (USD Million)
Table 4 Networking Services: Market Size, By Region, 2014–2021 (USD Million)
Table 5 Database Services: Market Size, By Region, 2014–2021 (USD Million)
Table 6 Identity and Access Management Services: Market Size, By Region, 2014–2021 (USD Million)
Table 7 Volume and Object Storage Services: Market Size, By Region, 2014–2021 (USD Million)
Table 8 Professional Services: Market Size, By Type, 2014–2021 (USD Million)
Table 9 Professional Services: Market Size, By Region, 2014–2021 (USD Million)
Table 10 Business Consulting Services: Market Size, By Region, 2014–2021 (USD Million)
Table 11 Implementation Services: Market Size, By Region, 2014–2021 (USD Million)
Table 12 Training and Support Services: Market Size, By Region, 2014–2021 (USD Million)
Table 13 Managed Services: Market Size, By Region, 2014–2021 (USD Million)
Table 14 Bare Metal Cloud Market Size, By Organization Size, 2014–2021 (USD Million)
Table 15 Small and Medium Enterprises: Market Size, By Region, 2014–2021 (USD Million)
Table 16 Large Enterprises: Market Size, By Region, 2014–2021 (USD Million)
Table 17 Bare Metal Cloud Market Size, By Vertical, 2014–2021 (USD Million)
Table 18 Banking, Financial Services, and Insurance: Market Size, By Region, 2014–2021 (USD Million)
Table 19 Banking, Financial Services, and Insurance: Market Size, By Service Type, 2014–2021 (USD Million)
Table 20 Government: Market Size, By Region, 2014–2021 (USD Million)
Table 21 Government: Market Size, By Service Type, 2014–2021 (USD Million)
Table 22 Healthcare: Market Size, By Region, 2014–2021 (USD Million)
Table 23 Healthcare: Market Size, By Service Type, 2014–2021 (USD Million)
Table 24 Retail: Market Size, By Region, 2014–2021 (USD Million)
Table 25 Retail: Market Size, By Service Type, 2014–2021 (USD Million)
Table 26 Manufacturing: Market Size, By Region, 2014–2021 (USD Million)
Table 27 Manufacturing: Market Size, By Service Type, 2014–2021 (USD Million)
Table 28 IT and Telecom: Market Size, By Region, 2014–2021 (USD Million)
Table 29 IT and Telecom: Market Size, By Service Type, 2014–2021 (USD Million)
Table 30 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 31 Others: Market Size, By Service Type, 2014–2021 (USD Million)
Table 32 Bare Metal Cloud Market Size, By Region, 2014–2021 (USD Million)
Table 33 North America: Market Size, By Country, 2014–2021 (USD Million)
Table 34 North America: Market Size, By Service Type, 2014–2021 (USD Million)
Table 35 North America: Market Size, By Professional Service Type, 2014–2021 (USD Million)
Table 36 North America: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 37 North America: Market Size, By Vertical, 2014–2021 (USD Million)
Table 38 United States: Market Size, By Service Type, 2014–2021 (USD Million)
Table 39 United States: Market Size, By Professional Services Type, 2014–2021 (USD Million)
Table 40 United States: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 41 Canada: Bare Metal Cloud Market Size, By Service Type, 2014–2021 (USD Million)
Table 42 Canada: Market Size, By Professional Service Type, 2014–2021 (USD Million)
Table 43 Canada: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 44 Europe: Market Size, By Country, 2014–2021 (USD Million)
Table 45 Europe: Market Size, By Service Type, 2014–2021 (USD Million)
Table 46 Europe: Market Size, By Professional Service, 2014–2021 (USD Million)
Table 47 Europe: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 48 Europe: Market Size, By Vertical, 2014–2021 (USD Million)
Table 49 Asia-Pacific: Bare Metal Cloud Market Size, By Country, 2014–2021 (USD Million)
Table 50 Asia-Pacific: Market Size, By Service Type, 2014–2021 (USD Million)
Table 51 Asia-Pacific: Market Size, By Professional Service, 2014–2021 (USD Million)
Table 52 Asia-Pacific: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 53 Asia-Pacific: Market Size, By Vertical, 2014–2021 (USD Million)
Table 54 Middle East and Africa: Bare Metal Cloud Market Size, By Service Type, 2014–2021 (USD Million)
Table 55 Middle East and Africa: Market Size, By Professional Service, 2014–2021 (USD Million)
Table 56 Middle East and Africa: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 57 Middle East and Africa: Market Size, By Vertical, 2014–2021 (USD Million)
Table 58 Latin America: Bare Metal Cloud Market Size, By Service Type 2014–2021 (USD Million)
Table 59 Latin America: Market Size, By Professional Service, 2014–2021 (USD Million)
Table 60 Latin America: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 61 Latin America: Market Size, By Vertical, 2014–2021 (USD Million)
Table 62 Partnerships, Agreements, and Collaborations, 2014–2016
Table 63 New Products/Service Launches, 2014–2016
Table 64 Mergers and Acquisitions, 2014–2016
Table 65 New Contracts, 2014–2016
Table 66 Agreements, Partnerships, and Collaborations, 2015–2016
Table 67 New Product Launches, 2014–2016


List of Figures (52 Figures)

Figure 1 Bare Metal Cloud Market
Figure 2 Bare Metal Cloud Market: Research Design
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 Service Type Snapshot (2016–2021): Database Services Market is Expected to Dominate the Bare Metal Cloud Services Market for the Forecast Period
Figure 7 Regional Snapshot (2016–2021): the Bare Metal Cloud Market for North America is Expected to Grow Four-Fold By 2021
Figure 8 Vertical Market Snapshot (2016–2021): Deployment of Bare Metal Servers in BFSI Sector Will Recieve Boost By 2021
Figure 9 North America is Estimated to Hold the Largest Market Share in 2016
Figure 10 Critical Need for Reliable Load Balancing of Data-Intensive Operations and Necessity for Dedicated Resources Infrastructure are Driving the Bare Metal Cloud Market
Figure 11 Retail, Manufacturing, and Healthcare Verticals are Expected to Grow at Impressive Rates During the Forecast Period
Figure 12 North America is Expected to Hold the Largest Market Share in the Bare Metal Cloud Market
Figure 13 Asia-Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 14 Regional Lifecycle
Figure 15 Bare Metal Cloud: Market Segmentation
Figure 16 Bare Metal Cloud Market Segmentation: By Service Type
Figure 17 Market Segmentation By Professional Service Type
Figure 18 Market Segmentation By Organization Size
Figure 19 Market Segmentation By Vertical
Figure 20 Market Segmentation By Region
Figure 21 Market Drivers, Restraints, Opportunities, and Challenges
Figure 22 Market Value Chain Analysis
Figure 23 Strategic Benchmarking: Agreements, Partnerships, and Collaborations
Figure 24 Database Services are Expected to Lead the Bare Metal Cloud Market
Figure 25 The Market Size of Small and Medium Enterprises is Expected to Increase Exponentially From 2016 to 2021
Figure 26 Asia-Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 27 BFSI is Expected to Exhibit the Largest Market Size in the Bare Metal Cloud Market During the Forecast Period
Figure 28 North America is Expected to Exhibit the Largest Market Size in the BFSI Market During the Forecast Period
Figure 29 Asia-Pacific is Expected to Exhibit the Highest CAGR in the Bare Metal Cloud Market
Figure 30 Geographic Snapshot: Europe, Middle East and Africa, and Latin America are Emerging as New Hotspots
Figure 31 North America: Geographic Snapshot
Figure 32 Database Services in North America is Expected to Hold the Largest Market Share in the Bare Metal Cloud Market
Figure 33 Asia-Pacific: Geographic Snapshot
Figure 34 Database Services of Asia-Pacific Region is Going to Face Significant Traction During the Forecast Period
Figure 35 Companies Adopted Agreements, Partnerships, and Collaborations as the Key Growth Strategy During 2014–2016
Figure 36 Companies Adopted Agreements, Partnerships, and Collaborations as the Key Growth Strategy During 2014–2016
Figure 37 Battle for Market Share: Agreements, Partnerships, and Collaborations Was the Key Strategy Adopted By Companies in the Bare Metal Cloud Market During 2014–2016
Figure 38 Evaluation Overview - Service Offering
Figure 39 Evaluation Overview - Business Strategy
Figure 40 Vendor Dive Matrix: Bare Metal Cloud
Figure 41 Geographic Revenue Mix of Major Public Players
Figure 42 IBM Corporation: Company Snapshot
Figure 43 IBM Corporation: SWOT Analysis
Figure 44 Oracle Corporation: Company Snapshot
Figure 45 Oracle Corporation: SWOT Analysis
Figure 46 Centurylink Incorporation: Company Snapshot
Figure 47 Centurylink Incorporation: SWOT Analysis
Figure 48 Rackspace Hosting, Incorporation: Company Snapshot
Figure 49 Rackspace Hosting, Incorporation : SWOT Analysis
Figure 50 Internap Corporation: Company Snapshot
Figure 51 Internap Corporation: SWOT Analysis
Figure 52 Packet: SWOT Analysis

MarketsandMarkets forecasts the bare metal cloud market size to grow from USD 0.87 Billion in 2016 to USD 4.71 Billion by 2021, at a Compound Annual Growth Rate of 40.1%.

Bare metal cloud is emerging as a reliable Infrastructure-as-a-Service (IaaS) alternative, instrumental in combining the characteristics of both traditional hosting and IaaS for delivering high-performance workloads. Bare metal servers are dedicated to a specific tenant, which is implemented to reduce the capex required for IT infrastructure. There has been significant adoption of bare metal servers, which are attributed to the major driving factors such as critical need for reliable load balancing of data-intensive & latency-sensitive operations, necessity of non-locking compute & storage resources, and advent of fabric virtualization.

Bare metal cloud offers key characteristics, such as on-demand capacity, pay-as-per pricing, and self-automated service to the commercial customers. In addition, it offers major advantages, such as hyper-scalability & flexibility, majorly used for big data applications, artificial intelligence applications, and latency-sensitive high-data transaction workloads. Moreover, bare metal cloud offers on-demand access to high-performance-dedicated servers by deploying and provisioning bare metal cloud instance via a web portal or application programming interface, which is flexible in nature and easy to deploy & manage over the web.

This market is segmented on the basis of service type, professional service, user type, and vertical. The identity and access management service type is expected to dominate the bare metal cloud market, at the highest Compound Annual Growth Rate (CAGR) during the forecast period as it is a crucial service for bare metal cloud that majorly governs the IT resource access and optimizes the physical security of the bare metal cloud servers and storages.

The implementation services segment of bare metal cloud market is estimated to grow at the highest rate during the forecast period as they are essential for the deployment of bare metal cloud services on the customer premises. The implementation services initiate with the process of critical examination of business requirements and end with the monitoring or maintaining of deployed solutions at the client locations. In implementing bare metal servers, it is mandatory for the service providers to meet the required service-level agreements to offer reliable services to their commercial clientele.

This study also includes the recent developments, new product launches, and acquisitions of major market players in the bare metal cloud arena. It also measures and evaluates the major offerings and key strategies of major vendors such as IBM Corporation, Oracle Corporation, CenturyLink, Inc., Internap Corporation, Rackspace Hosting, Inc., and Packet and key innovators such as Dell Technologies, Inc., Packet, Bigstep, Spotinst, Joyent, Inc., Scaleway Inc., and Strom.

Bare Metal Cloud Market

North America is expected to hold the largest market share and would dominate the bare metal cloud market from 2016 to 2021. This region has the major dominance with sustainable and well-established economies, empowering them to strongly invest in the Research and Development (R&D) activities, thereby contributing to the development of new technologies such as Internet of Things (IoT), big data, DevOps, mobility, and social media. European market is growing at a fast pace, owing to the major cloud initiatives taken by various countries such as the U.K. (CloudFirst), Germany (Trusted Cloud), and Spain (Public Sector Cloud Initiatives).

Asia-Pacific is estimated to grow at the highest CAGR during the forecast period in the bare metal cloud market, which is attributed to the major cloud initiatives taken in the region by the Australian government to reduce the duplication and fragmentation of data and “G-Cloud” initiative taken by the Singapore government to provide software-as-a-service and IaaS along with the use of bare metal servers.

The stringent cloud regulations and easy availability of lightweight hypervisors in the market are the major restraining factors for the global bare metal cloud market.

There are several established players in this market such as IBM Corporation (U.S.), Oracle Corporation (U.S.), CenturyLink, Inc. (U.S.), Internap Corporation (U.S.), and Rackspace Hosting, Inc. (U.S.). To further strengthen their position in the market, the major vendors have opted partnerships, agreements, and collaborations to integrate their offerings and jointly develop products and services for the commercial clients in the market.

Critical need for reliable load balancing of data-intensive and latency sensitive operations, necessity of non-locking compute and storage resources, advent of fabric virtualization, and no noisy neighbors and hypervisor tax are the major factors driving the growth of bare metal cloud market.

Organizations across all the verticals have been deploying bare metal cloud services, which enable load balancing to improve the distribution of workloads, customize networks for extensive performance, ensure high security of data, provide multiple database homes on a single server, optimize IT resource access & physical security, and achieve strategic business initiatives.

Bare Metal Cloud Market

Banking, financial services, and insurance

The BFSI vertical predominantly requires bare metal cloud services for critical need of high security and data protection during online banking, secure transactions, and access violations. In addition, banking solutions require high-end proactive processing, as managing banking operations is very different and critical.

In the BFSI vertical, analytics is one of the most important requirements which allows integration of customer data across banking silos to enable real-time insights and decision making. The solutions improve the institutional view of customers, enable better CRM, mitigate fraud and operational risks, and improve customer service and experience. Bare metal servers can meet all the banking needs. In addition, the BFSI sector requires scalable storage infrastructure to ensure high performance for real-time trading and enable policy-driven data archival to address compliance, while supporting growing storage needs for managing large data sets from multiple sources.

Banking organizations need access to worldwide, high performing, and resilient deployment of collaboration applications. To solve this impediment, bare metal cloud vendors provide bare-metal servers with high RAM and CPU, which deliver high-performing infrastructure on demand.

Government

The government sector is one of the early adopters of bare metal cloud because of its heavy requirement of storage and complex servers. Government IT environments are becoming exponentially more complex with growing volumes of transactions, virtualized infrastructures, and mobile applications. Therefore, the government sector requires new approaches that can help them to efficiently monitor and operate servers and storages. Bare metal cloud services empower government IT teams to work effectively even in the most complex and dynamic environments.

The content exchange in the government sector is highly classified and undisclosed. Government agencies handle highly secured and private data of individuals, departments, processes, and agencies. Government agencies are subject to strict security policies and regulations, owing to the critical and secret nature of data. Thus, the need for higher control and visibility is evident.

Government agencies need to collaborate in a better fashion to ensure the migration and preserve the integrity of data. Better management of IT infrastructure to support resource sharing ensures better security compliance controls and classified content security structure. The volume of data generated in government agencies is huge and subject to high scrutiny. Moreover, the government agencies are subject to stringent security standards and strict audit policies. 

Healthcare

Healthcare is a highly-regulated industry, where new systems and regulations are strictly followed. Health related data of patients are highly secure and need to be handled with attention. In the healthcare, vertical, the safety and security standards such as Health Insurance Portability and Accountability Act (HIPPA) should be followed. The bare metal cloud providers create HIPAA-compliant environment for various bare metal services such as compute services, networking services, database services, and identity and access management services. In this way, bare metal cloud can provide the necessary control over data location and keep it segregated within a well-defined, secure physical environment.

Retail

The retail industry is driven by its flexible needs in back-end systems and front-end applications, such as mobile inventory tracking delivered on cloud-based platforms. Retail is also a relatively early adopter of social and mobile tools, which generate an enormous volume of customer data. The analytics technology required to analyze this big data and gain insights into customer behavior requires performance-oriented IT infrastructure and software. Retailers are more open to consider cloud services and they understand that analyzing big data requires significant computing power. Bare metal servers provide the required high computing and analyzing power, unlike hypervisors. On the contrary, retail organizations do not necessarily need such high levels of computing power all the time, hence bare metal cloud providers offer an innovative pricing structure that allows retailers to pay per hour.

Manufacturing

Compared to other verticals, the manufacturing vertical is not known for high investment in advanced IT Infrastructure services. Yet, despite close-fitting budgets, some manufacturers have been deploying bare metal cloud computing software because it can reduce capital expenditures and IT labor costs. Besides cost savings, cloud computing benefits typically include quicker deployment and superior ease of use. The effective use of high-level computing services can also improve the sales and marketing capabilities of manufacturers as well. Production handling software, supply chain, distribution, and services are few other important tasks of the manufacturing vertical, where high capability storages and fast processing servers are required.

IT and Telecom

Consumers of IT and telecommunication industries are increasingly using Information Communication Technology (ICT) services, from emails and word processing to online music and social networking. The heavy use of IT and telecommunication services generates substantial amount of digital data. In addition, the effective storage and management of such information requires high capacity and fast processing servers.

IT service providers handle the critical data from various industries such as BFSI, healthcare, education, and government & defense. The companies have to follow the security standards and regulations such as HIPPA standards in healthcare, PCI DSS standards for credit card related information, GLBA, SOX/J-SOX, NCUA, data privacy, and data residency laws. Companies require high security infrastructure to manage these standards. Hence, companies are adopting bare metal cloud in the IT industry.

Telecommunication companies are adopting bare metal cloud services to use its features such as advanced security and pay-per-use business model. Managing personal information of customers and telecommunication switching operations are few of the most demanding tasks that require high capacity servers, secure storages, and high capability data analytics. Adoption of bare metal cloud services fulfills all these requirements.

Others

Others segment includes media & entertainment, energy & utilities, automotive, transportation, logistics tracking, and education are the top contributors. The others vertical segment of the bare metal cloud market is expected to grow at a decent pace as compared to the rest of the verticals. After the advent of high-definition videos and advances in the way video content is delivered to consumers, the media and entertainment industry has to deal with heavy workloads. In addition, data-intensive operations are required to analyze the media content. Hence, this vertical is expected to grow at a significant pace. The organizations in the energy and utilities vertical of UAE, Saudi Arabia, and Turkey have taken a proactive approach in implementing and adopting bare metal cloud services to manage their data. Automotive, transportation, and logistics tracking vertical are also leading adopters of bare metal cloud services. Moreover, starting from the delivery of education to managing resources, students, and administration activities to online education, lead to greater overall adoption of the bare metal cloud compute services.

Key questions

  • Which are the substitute service for bare metal cloud and how big is the threat from them?
  • Which are the top use cases where bare metal cloud can be implemented for revenue generation through new advancements such as artificial intelligence, IoT, and cloud computing?
  • What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

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