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Dedicated servers vs cloud: When bare metal is the better choice

4 min read - May 26, 2025

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Table of contents

  • Dedicated servers vs cloud: When bare metal is the better choice
  • What is a dedicated server?
  • When bare metal is better than cloud
  • Predictable performance under load
  • Bandwidth pricing you can actually understand
  • More compute per dollar
  • Full hardware control and custom OS
  • Better for sustained workloads
  • When the cloud wins
  • Instant scaling and global reach
  • Managed everything
  • Disaster recovery and multi-AZ setup
  • Honest trade-offs
  • Video recommendation
  • Final thoughts

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Is the cloud always the best option? This guide compares dedicated servers and cloud platforms like AWS and GCP with honest pros, cons, and real-world use cases.

Dedicated servers vs cloud: When bare metal is the better choice

The cloud changed everything, and not always for the better.

Platforms like AWS, GCP, and Azure offer flexibility, scalability, and powerful managed services. But they also introduce cost complexity, shared hardware, and unpredictable performance.

In 2025, dedicated servers are making a quiet comeback, especially among developers, hosting providers, and infrastructure-heavy startups who want more control at a lower price point.

Here's how bare metal stacks up against cloud, and when it might actually be the better fit.


What is a dedicated server?

A dedicated server is a physical machine rented or colocated for your exclusive use. You get full control over the hardware, CPU, memory, disk, and network, without virtualization or noisy neighbors.

Compare that to cloud platforms, where you're typically renting slices of shared infrastructure (VMs, containers, functions) with varying levels of abstraction.


When bare metal is better than cloud

1. Predictable performance under load

Dedicated servers offer consistent, raw performance without noisy neighbors or hypervisor overhead. Perfect for:

  • Game servers
  • Video streaming
  • Machine learning inference
  • Low-latency applications

Cloud VMs can throttle or burst unpredictably depending on demand in the availability zone.


2. Bandwidth pricing you can actually understand

With providers like FDC Servers, you get unmetered 10Gbps or 100Gbps ports at flat monthly prices. No egress surprises.

Cloud platforms often charge per GB transferred, and the costs can skyrocket with content-heavy apps or global usage.


3. More compute per dollar

Cloud platforms charge for convenience, elasticity, and branding. On raw specs, especially for CPU, RAM, or storage-heavy workloads, dedicated servers almost always win.

For example, a $200/month dedicated box might outperform a $500/month EC2 setup if tuned properly.


4. Full hardware control and custom OS

Need to run a custom kernel? Specific GPU drivers? ZFS with native tuning? Dedicated hardware gives you that flexibility.

Cloud providers limit kernel access, and nested virtualization or PCI passthrough is either unsupported or expensive.


5. Better for sustained workloads

If your workload is steady (e.g., hosting, video encoding, LLM inference), bare metal pricing tends to be simpler and more cost-effective over time.

Cloud excels for short-term spikes, but you pay heavily to keep things running 24/7.


When the cloud wins

1. Instant scaling and global reach

You can deploy services in dozens of regions with the click of a button. Great for startups or fast-growing platforms that need auto-scaling and global CDN integration.


2. Managed everything

Database as a service, serverless functions, built-in security policies, snapshots, IAM roles — the ecosystem is unmatched.

If your team is small or you need to move fast, these managed features save massive amounts of time.


3. Disaster recovery and multi-AZ setup

Cloud platforms make it trivial (albeit expensive) to replicate your infrastructure across zones and regions. This can be harder to implement manually on bare metal unless you're colocating across facilities.


Honest trade-offs

Performance:

  • Dedicated server: Raw, predictable
  • Cloud platform: Variable, virtualized

Cost (steady load):

  • Dedicated server: Predictable, fixed pricing
  • Cloud platform: Variable, often hard to predict or understand

Flexibility:

  • Dedicated server: Full OS and hardware control
  • Cloud platform: Limited by platform rules

Scaling:

  • Dedicated server: Manual provisioning
  • Cloud platform: Instant, auto-scaled

Ecosystem:

  • Dedicated server: DIY
  • Cloud platform: Rich managed services

Networking:

  • Dedicated server: Flat-rate or unmetered
  • Cloud platform: Per GB pricing

Setup speed:

  • Dedicated server: Slower (hours to deploy)
  • Cloud platform: Instant (minutes or less)

Video recommendation

Title: Why You Should Leave the Cloud – David Heinemeier Hansson
Channel: Alfie Whattam
Why You Should Leave the Cloud – David Heinemeier Hansson


Final thoughts

Cloud platforms are powerful, but not always economical or necessary. For performance-focused, steady-state workloads, bare metal gives you full control and better ROI.

Dedicated servers are far from obsolete. In fact, for many workloads, they're faster, cheaper, and simpler to operate than the cloud, especially when paired with a provider like FDC Servers, where bandwidth, specs, and support are built for real infrastructure users.

If you're starting to feel the weight of cloud bills or performance ceilings, it might be time to explore what bare metal can do for you.

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