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Rackspace and HPE launch PAYG private cloud

(Image credit: Image Credit: Everything Possible / Shutterstock)

Rackspace and HPE are teaming up to make private cloud more affordable than ever with the launch of a new 'pay-as-you-go' OpenStack offering.

From November 28th, businesses will be able to benefit from a pay-per-use structure when using OpenStack Private Cloud, meaning customers will now only pay for what they use, providing major cost advantages to companies of all sizes. Companies will be charged either as a per-VM hour, or per GB transferred uisng the service, much like existing models used by the likes of AWS.

The OpenStack service will be located on a dedicated single-tenant managed HPE box which can be hosted either by Rackspace, the customer themselves, or in a co-located environment. Customers can then choose to add on extra expansions when needed, and only pay when they use it.

Rackspace and HPE say that the new joint solution can make private cloud up to 40 per cent cheaper than using an equivalent public cloud, and allows customers to cope with unexpected bursts in workloads without needing to spend big on expanding their capacity needs.

“The launch of OpenStack Private Cloud with pay-per-use infrastructure, delivered by Rackspace and HPE, marks a pivotal moment in the private cloud market and in the industry at large,” said Antonio Neri, president of HPE. 

“This experience is the best of the cloud and on-premises worlds, and we fully expect this simple pay-per-use technology model to change the way enterprises make technology decisions.”

For customers outside the current parameters, Rackspace adds that the service is set to expand to include VMware and Azure-powered versions of Rackspace Private Cloud next year.

“With this innovative delivery model, Rackspace and HPE are removing the barriers to private cloud adoption, giving customers even more choice of technology platforms that best fit their application needs,” said Scott Crenshaw, executive vice president of private cloud at Rackspace. 

“We are proud to partner with HPE to continue enabling customer success with private clouds. And, with this common goal in mind, our companies plan to extend this model to Rackspace’s entire managed private cloud portfolio in the future, including VMware and Microsoft Azure Stack technologies.”

Michael Moore
Michael Moore is News and Features Editor working across both ITProPortal and TechRadar Pro. He has worked as a technology journalist for more than five years, including spells at one of the UK's leading national newspapers. He is interested in hearing about all the latest news and developments across the Business IT world, and how companies are using new technology to help push forward their work and make their customer's lives easier.