IBM, Oracle, CenturyLink Among Key Players in Bare Metal Cloud Services

The global bare metal cloud service market presents increasing revenue opportunities for partners.

The market is expected to reach $25.7 billion by 2025, expanding at a compound annual growth rate (CAGR) of 16.8 percent, according to a new report by Transparency Market Research.

The firm didn’t disclose the current market value, but last November Grand View Research said the global bare metal cloud market was $1.32 billion in 2016.

North America will continue to be at the forefront of global demand, growing above 16 percent through 2025, while Canada will continue to hold a very small share.

The key players in the market include IBM, Oracle, CenturyLink, Rackspace, Scaleway, Liquid Web, Joyent, Internap, Bigstep and Packet. Various players are introducing “superior bare metal cloud services offerings,” and entering into strategic M&A activities to expand and generate more revenue from the market globally, according to the report.

Among factors driving market growth are “noisy neighbor” elimination, and the supply of dedicated hardware for the user.; however, stringent regulations pertaining to the cloud might restrain market growth, Transparency said.

The increasing application of bare-metal cloud services for artificial intelligence (AI) is expected to create new opportunities for the market.

Many well-established players are launching services pertaining to the bare metal cloud. For instance, Oracle last year lintroduced a service that allows the user to create a load balancer within the company’s virtual cloud network.

By enterprise type, SMB continues to be the most lucrative segment, and that’s likely to remain unchanged over the next few years.

The Asia Pacific market is expected to reach nearly $5 billion by 2025, expanding at an 18 percent CAGR. Demand there is likely to remain concentrated in the prominent economies such as China and India.