IaaS Leading the Way in Global Cloud Spending

4 Aug 2023 by Datacenters.com Bare Metal

Cloud computing is quickly becoming the new normal for businesses of all sizes, and Infrastructure-as-a-Service (IaaS) is leading the charge. According to a recent study from Gartner, IaaS spending will reach nearly $72 billion worldwide in 2025 – an impressive 40% year over year growth rate since 2018.   

This unprecedented surge in cloud adoption has been facilitated by its cost advantages, scalability, automation capabilities and more straightforward operations when compared to traditional onsite IT deployments.   

These benefits have propelled IaaS into one of the most sought after cloud services on the market today, offering organizations across many industries both incremental efficiency gains as well as competitive advantages.   

In this blog post we'll be exploring what makes IaaS such a potent force for global business growth and how companies can take advantage of it.  

Infrastructure as a Service Overview  

Infrastructure as a Service is a type of cloud computing service that provides essential compute, storage, and networking resources on demand. This model allows users to outsource these fundamental components, enabling them to focus on their core business rather than IT infrastructure.   

IaaS is typically made up of a collection of physical and virtualized resources that provide the basic building blocks needed to run applications. It's one of the three main categories of cloud computing services, alongside Software as a Service (SaaS) and Platform as a Service (PaaS).   

Its pay-as-you-go nature often includes various services, making it a cost-effective choice for businesses. In simple terms, IaaS is a form of cloud computing that delivers IT infrastructure like compute, storage, and network resources over the internet.  

Bare metal Infrastructure as a Service is a subset of cloud computing that provides users with dedicated hardware resources. Unlike traditional IaaS, which offers access to virtualized resources, bare metal IaaS allows users to rent dedicated servers from a cloud service provider.   

This means that the user has exclusive access to the physical server and its resources, avoiding the contention that can occur in a shared, virtualized environment. With bare metal IaaS, users have full control over the operating system and application installation, making it an ideal solution for critical workloads that require specific certifications or custom configurations.   

Bare metal IaaS is a powerful tool for businesses seeking the flexibility of cloud computing but with the performance advantages and customization options of dedicated hardware .  

Cloud Spending Trends  

Cloud spending has emerged as a top priority for businesses across all sectors, driven by the need for agility, scalability, and cost-effectiveness in an increasingly digital world. As companies navigate the complexities of remote work, data security, and digital transformation, investment in cloud services has become not just a strategic move, but a necessity.   

The flexibility of the cloud allows businesses to adapt quickly to market changes, scale operations efficiently, and reduce costs associated with maintaining on-premises infrastructure. Moreover, the cloud's pay-as-you-go model provides businesses with more control over their IT expenditure, enabling them to only pay for the services they use.   

As such, cloud spending is no longer seen as just an operational expense but a strategic investment that can drive business growth and innovation.  

It's estimated that end-users will be investing more than $597 billion on public cloud services by 2023, amounting to an increase of 21.7% from the previous year. The creation and utilization of public clouds signifies a large transition for businesses and their operations, requiring IT infrastructure that is goal and cost optimized.   

Companies who put efforts into adapting a cloud platform stand to benefit through major cost reductions and enhanced flexibility with scalable networks. In addition, with purchasing power increases due drastic competition in the market, potential savings could even facilitate migration costs related to transitioning out of traditional on-premise architecture.   

Recent statics suggests that cloud adoption growth has no plans of slowing down anytime soon — no matter how large or small the organization is, good news for those considering putting themselves on the digital map with cloud technology.  

Bare Metal IaaS Leading the Way   

Generative AI, Web3, and the metaverse are all technologies that are stirring up excitement within the tech industry. As these continue to develop, the demand for back-end processing power becomes clearer; cloud infrastructure and platform services aim to do just that-- increase scalability while allowing for timely data management.   

Businesses, previously tied to limited software solutions, now have numerous resources available at their disposal in moments of great need. In short: emerging technologies are powering real-time data processing demands along with scalable cloud plans.  

IaaS is expected to see the highest spending growth at 30.9%, followed by platform-as-a-service (PaaS) at 24.1%. Gartner is predicting a huge shift in the way that marketing efforts are going to take shape. It's anticipated that by 2025, the majority of messages sent out through outbound marketing tactics from massive organizations will now be synthetically written.   

Furthermore, by 2026 it is expected for 75% of companies to adopt a cloud-based digital transformation business model. As technology rapidly intervenes with business practices, we can expect to see larger firms leaning towards modernized marketing and organisational techniques at an increasing rate.  

Customize Your IaaS Solution 

Customizing your bare metal Infrastructure as a Service deployments is pivotal for optimizing performance, scalability and cost-effectiveness. Bare metal IaaS offers the raw power of physical servers, devoid of virtualization overhead, thus providing an ideal environment for resource-intensive applications. However, the one-size-fits-all approach doesn't work here.  

Each application has unique requirements, hence, customization becomes crucial. By tailoring your IaaS deployments, you can ensure that the infrastructure aligns perfectly with your workload needs. This not only maximizes resource utilization but also enhances application performance and user experience. Moreover, customization allows you to scale your infrastructure in sync with your business growth, thereby avoiding unnecessary costs and ensuring operational efficiency.  

Thus, for best results, it's essential to customize your bare metal IaaS deployments to fit your specific business needs and objectives. Customize the perfect IaaS solution for your business with Datacenters.com. 


Bare metal Infrastructure as a Service (IaaS) is becoming increasingly crucial for businesses, primarily due to its heightened flexibility and control. Unlike traditional cloud services which are multi-tenant and can lead to resource contention, bare metal IaaS offers dedicated hardware resources, thereby eliminating the need for a middle layer and providing businesses with unparalleled control over their digital ecosystem.  

This level of control enables businesses to manage their own hypervisor, finely tune hardware and software for specific workloads, and avoid the "noisy neighbor" challenges of shared infrastructure.  

Furthermore, bare metal IaaS allows companies to leverage the latest processors, storage, networking hardware, and container orchestration that they might not have been able to afford or access as quickly otherwise.  

The importance of bare metal IaaS for businesses is expected to grow significantly in the coming years. As the digital landscape continues to evolve, businesses are constantly seeking ways to enhance performance, improve security, and increase uptime.  

Bare metal IaaS, with its unique ability to provide physical separation from other servers, meets these needs effectively. Moreover, the rapid pace of technological advancements means that businesses require solutions that can keep up with emerging trends and demands.  

Bare metal IaaS, with its inherent flexibility and scalability, is well-positioned to meet these future needs, making it an increasingly popular solution for businesses across various sectors. 


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