Illustrative embodiments represent a dynamic on-demand approach to configuring destination storage for bare metal restore (BMR) operations without operator intervention, including destination storage that is smaller than source storage devices. The illustrative operations rely on system state information collected concurrently with or shortly after source data is backed up, thereby capturing current actual storage metrics for the source data. The illustrative embodiments further rely on enhanced data agent components to collect and restore system state information as well as to restore backup data, thereby streamlining the configurations needed for the BMR operation to proceed. Additional business logic matches source mount points with suitable smaller destination storage resources and ensures that the BMR operation successfully completes with diverse and/or smaller storage destinations.