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IBM Corporation and Oracle Corporation are the Renowed Players in the Bare Metal Cloud Market

MarketsandMarkets

Posted 16th November 2018.

According to recent research “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”, 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 Compound Annual Growth Rate (CAGR) of 40.1%.

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The major forces driving the bare metal cloud market are the growing need for high-performance computing and reliable load balancing of data-intensive and latency-sensitive operations. Moreover, the necessity of non-locking compute & storage resources, advent of fabric virtualization, and the need for noiseless neighbors & hypervisor tax are some of the factors that are driving the market.

Identity and access management service type is the fastest growing segment in the bare metal cloud market during the forecast period

Identity and Access Management (IAM) service type governs the IT resource access and optimizes the physical security of bare metal cloud servers and storages. It is secure, scalable, and highly customizable, and organizations can model business structures to fit their security and operational needs. Moreover, for deploying the bare metal cloud infrastructure, the minimum requirement is the security of the performance workloads and, hence, most of the vendors have been dedicatedly offering IAM services in the form of strong two-factor authentication for securing the performance workloads and billing accounts.

Database service type is expected to hold the largest market share in the bare metal cloud market during the forecast period

A database system is a dedicated bare metal cloud instance, which consolidates multiple database homes on a single server and permits the client to minimize idle resources, maximize efficiency, and lower costs. Bare metal dB Systems use locally attached non-volatile memory express storage to ensure maximum performance of the database. Bare metal cloud database services are primarily adopted by the organizations with heavy database requirements that include gaming companies, public websites, social media websites, and companies that require rendering farms.

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North America is expected to contribute the largest market share in the bare metal cloud market during the forecast period

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. The rapid growth of start-up culture and cloud computing initiatives taken by major countries such as the U.S. and Canada are also responsible for the growth of the bare metal cloud market in North America.

The major vendors in bare metal cloud market include IBM Corporation (U.S.), Oracle Corporation (U.S.), Rackspace Hosting, Inc. (U.S.), CenturyLink, Inc. (U.S.), Packet (U.S.), and Internap Corporation (U.S.).

IBM Corporation is one of the leading players in the bare metal cloud market. The company adopted both organic as well as inorganic strategies to enhance its presence in the market. It entered into various partnerships and strategic alliances with local as well as global players. For instance, in October 2016, IBM Corporation partnered with Majesco, a leading solutions and services provider of cloud computing in the U.S. This partnership enabled the IBM clients to speed up the development of new customer services with predictive data analytics for insurance providers, to bring new solutions to the clients. The company acquired Gravitant, Inc., a privately held company of the U.S., which majorly offers cloud-based software to the application developers for the development of enterprise applications and also provides cloud-associated services and solutions to its commercial customers. This acquisition enabled IBM Corporation to broaden its bare metal services and offerings.

Oracle Corporation is another major provider of bare metal cloud. The company has a strong geographic presence worldwide including North America; Europe, Middle East, and Africa; and Asia-Pacific. The company focuses more on the inorganic growth strategies to tap into the bare metal cloud market. For instance, in July 2016, Oracle Corporation partnered with Fujitsu, a leading cloud computing and IT infrastructure provider, to drive the cloud computing market and deliver enterprise-grade services to customers in Japan and their subsidiaries around the globe.

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