Virtual Private Cloud Vs. Bare Metal Servers

Virtual private clouds (VPC) and bare metal servers are both ways to access private infrastructure in a third-party-hosted environment. The two options are, however, very different in many ways including performance, security, cost, and typical use cases. With that in mind, here is a straightforward guide to what you need to know about VPC vs bare metal.

Performance – VPC

VPCs operate within a virtualized environment, where multiple virtual machines (VMs) share the same physical hardware. This virtualization layer introduces some level of overhead, which can impact performance, particularly in high-demand scenarios.

That said, modern hypervisors and cloud platforms have optimized VPCs to deliver impressive performance levels for most applications. Moreover, the flexibility of VPCs to scale resources dynamically also means that performance bottlenecks can often be addressed by simply adjusting the allocated resources.

Performance – Bare metal

By contrast, bare metal servers provide direct access to the underlying hardware without any virtualization layer. This allows for the full computational power of the server to be utilized.

Furthermore, the fact that there are no neighboring VMs competing for resources means that bare metal servers reliably deliver consistent and predictable performance. This means they are ideal for demanding workloads such as large-scale databases, high-performance computing (HPC), and latency-sensitive applications.

Security – VPC

While offering a high degree of security, VPCs operate in a multi-tenant environment. In other words, multiple users share the same physical hardware. Although cloud providers implement stringent isolation mechanisms to ensure that data and resources are secure, the shared nature of VPCs introduces potential vulnerabilities, particularly if a hypervisor or other underlying infrastructure is compromised.

That said, VPCs benefit from advanced security features provided by cloud platforms, such as encryption, firewalls, and intrusion detection systems, which are often more sophisticated than what individual organizations might implement on their own.

Security – Bare metal

Bare metal servers, on the other hand, provide a single-tenant environment where the entire server is dedicated to one user. This eliminates the risks associated with multi-tenancy and offers a higher level of isolation, making bare metal servers an attractive option for businesses with stringent security and compliance requirements.

Additionally, bare metal servers allow for more customized security configurations, giving organizations full control over their security position. This can make it much easier for businesses to be confident that they are complying with all relevant laws and regulatory standards.

Cost – VPC

VPCs typically have few to no upfront costs. Their ongoing costs are generally charged using a consumption-based pricing model so that users pay only for the resources they consume. This model is highly flexible and can be cost-effective for businesses with fluctuating workloads, as it allows them to scale resources up or down as needed.

On the minus side, however, the costs of using VPCs can quickly accumulate especially when workloads are heavy. Moreover, the more flexible VPC tariffs are, the more complex they tend to be. At best this means that businesses have to commit to keeping a close watch on their usage and its costs. At worst, it can lead to hefty unexpected expenses.

Cost – Bare metal

Bare metal servers, in contrast, typically require a more substantial upfront investment, particularly if the hardware is purchased outright. For long-term, resource-intensive applications, however, bare metal servers can be more cost-effective than VPCs. The predictable, fixed-cost nature of bare metal servers makes budgeting easier, and there are no hidden costs associated with the hypervisor or shared infrastructure.

Additionally, bare metal servers often come with dedicated support and maintenance services, which can further reduce operational costs over time. For enterprises with consistent workloads and long-term needs, the total cost of ownership (TCO) of bare metal servers can be lower than that of VPCs.

Typical use cases – VPC

VPCs are well-suited for applications that benefit from flexibility, scalability, and ease of management. For instance, development and testing environments, web applications, and disaster recovery solutions often leverage VPCs due to their ability to adapt quickly to changing demands. VPCs are also ideal for businesses that experience variable workloads, as they can dynamically scale resources up or down without significant cost implications.

Typical use cases – Bare metal

By contrast, bare metal servers are typically chosen for use cases that require high performance (especially minimal latency), enhanced security, and consistent reliability. These include mission-critical applications such as enterprise resource planning (ERP) systems, large-scale databases, and workloads that demand direct access to hardware.

Bare metal servers are also preferred in industries where legal and/or regulatory compliance is a top priority, such as finance, healthcare, and government. Their physical isolation from other users and their ability to offer full control over security configurations are major benefits for organizations that need the very highest standards of data security.