Ball bearings are an integral part of many machines and mechanisms and often determine their performance limits. Vibration, friction and power loss are some of the key measures of bearing performance. Therefore, there have been many predictive analyses of bearing performance with emphasis on various aspects. The current study presents a mathematical model, incorporating bearing dynamics, mechanics of rolling element-to-races contacts as well as the elastodynamics of the bearing outer ring as a focus of the study. It is shown that the bearing power loss in cage cycles increases by as much as 4% when the flexibility of the outer ring is taken into account as a thick elastic ring, based on Timoshenko beam theory as opposed to the usual assumption of a rigid ring in other studies. Geometric optimisation has shown that the lifetime power consumption can be reduced by 1.25%, which is a significant source of energy saving when considering the abundance of machines using rolling element bearings. The elastodynamics of bearing rings significantly affects the radial bearing clearance through increased roller loads and generated contact pressures. The flexible ring dynamics is shown to generate surface waviness through global elastic wave propagation, not hitherto taken into account in contact dynamics of rollers-to-raceways which are generally considered to be subjected to only localised Hertzian deflection. The elastodynamic behaviour reduces the elastohydrodynamic film thickness, affecting contact friction, wear, fatigue, vibration, noise and inefficiency.