A bare metal server is a physical server dedicated to a single tenant, offering direct access to the underlying hardware without a virtualization layer. This provides several key advantages, including: high performance due to no virtualization overhead and full resource utilization; full control and customization, including root access and hardware configuration; enhanced isolation and security by eliminating shared resources and reducing the attack surface; and predictable performance crucial for demanding workloads.

Bare metal servers generally outperform virtualized servers in resource-intensive tasks because they eliminate the overhead associated with virtualization. With bare metal, all CPU, memory, storage, and network resources are dedicated to a single user or workload. In contrast, virtualized servers share resources, leading to potential performance bottlenecks and inconsistencies due to "noisy neighbors" or resource contention.

Bare metal servers are best suited for situations requiring maximum performance and low latency, full control over the server environment, resource-intensive or specialized workloads (such as databases, big data analytics, machine learning, and high-performance computing), and strict compliance or security requirements related to data sovereignty or custom security policies. They are also suitable for long-term workloads where the cost efficiency can be better than virtualized instances.

Users of bare metal servers have complete control over the server environment, including root access, allowing them to install custom operating systems, software, and configurations. They can also choose specific hardware components, like CPUs, GPUs, and storage types, tailored to their workload requirements. This level of customization isn't always available or as flexible in virtualized environments.

Bare metal servers offer enhanced security due to the absence of a hypervisor, which reduces the attack surface. Because the server is dedicated to a single tenant, there is less risk of data leakage or interference from other users. Furthermore, organizations can implement custom security policies and configurations to meet industry-specific compliance standards and data sovereignty requirements.

Bare metal servers can be cost-effective for long-running, resource-intensive applications when considering the overhead costs associated with virtualization. There are also no hypervisor licensing costs. While virtualized instances might be cheaper for short-term or less demanding workloads, bare metal can offer a better return on investment for sustained, high-performance needs.

While the terms are often used interchangeably, a bare metal server emphasizes the absence of a virtualization layer and is often associated with cloud service providers offering on-demand, pay-as-you-go physical servers. A dedicated server is a broader term, traditionally referring to a physical server leased from a hosting provider, which may or may not include managed services. Bare metal highlights raw performance and cloud-like flexibility, while a dedicated server often implies traditional hosting models.

Bare metal servers can be integrated into hybrid cloud environments, combining the raw power of physical hardware with the scalability of cloud services. Many cloud providers now offer bare metal servers with on-demand provisioning, providing cloud-like flexibility to scale resources as needed. This allows organizations to leverage the benefits of both bare metal and cloud infrastructure within a single, integrated architecture.