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Equinix, a global leader in interconnection and data center services, has announced that it will discontinue its bare metal infrastructure as a service (IaaS) offering in June 2026. The company explained that this decision is part of its strategy to focus resources on more profitable areas, such as colocation, interconnection, and hyperscale services.
A Shift in Strategic Focus
The bare metal IaaS service, known as Equinix Metal, has allowed customers to deploy workloads on dedicated servers based on Arm and x86 architectures located in Equinix’s data centers and colocation spaces. However, the company has decided to redirect its investments toward higher-demand and more profitable services, such as data center capacity for artificial intelligence applications.
Equinix explained to the specialized media The Register that these decisions also aim to optimize the use of available space in its data centers, freeing it up for services that have a greater economic impact. Bare metal services, while functional and customizable, involve high operational costs and require significant investments that do not always yield quick returns.
The Legacy of Equinix Metal
Equinix Metal was launched in 2020 after the acquisition of the startup Packet. Since then, this service has provided companies with the ability to access hyperscale functionalities similar to those of the cloud, but with greater control by operating directly on dedicated servers. This allowed customers to leverage Equinix’s robust infrastructure to deploy services rapidly in any region where the company had a presence.
Despite its added value, the increasing competition from major public cloud providers, such as Microsoft Azure, AWS, and Google Cloud, has made it difficult for this type of service to remain sustainable. These companies have established their own data centers around the world, offering cloud IaaS solutions at more accessible prices and with greater ease for businesses.
Impact on Current Customers
Equinix assured that current Equinix Metal customers will be able to continue using the service as normal until its termination in 2026. However, the company has not indicated whether it will provide alternatives for migrating workloads or if it will partner with other providers to facilitate the transition for its customers.
A Move Aligned with the Industry
Equinix’s decision is not isolated. Other tech companies, such as Cisco, HPE, and VMware, have also recently abandoned their own bare metal service offerings due to high operational costs and market preference for public cloud solutions.
With this move, Equinix reaffirms its position as a leading provider of colocation and interconnection, sectors that remain key pillars in the global technology infrastructure ecosystem. The strategic shift underscores the evolution of the industry toward more efficient and profitable models driven by the growing demand for capacity for next-generation applications, such as artificial intelligence and machine learning.
source: Techzine