Rackspace teams up with HPE to offer pay-as-you-go OpenStack

James Marshall
November 14, 2017

HPE and Rackspace have teamed up to offer businesses access to OpenStack Private Cloud on a pay-as-you-go model, claiming to decrease the costs associated with a managed OpenStack implementation on public cloud infrastructure.

"As enterprise organizations continue to invest in both on-premises and hosted private cloud capabilities, they are increasingly incorporating a richer set of cloud services", said Michelle Bailey, IDC's group vice president, general manager and research fellow.

Partners Hewlett Packard Enterprise and Rackspace are betting it is, announcing this week they will offer an OpenStack private cloud service running on "pay-per-use" infrastructure.

"Part of the benefit here is it's literally private cloud delivered purely as a service with preconfigured infrastructure that provides everything from the right underlying hardware configuration to our best practice deployment of the actual private clouds themselves", he added. This flexible model can save customers up to 40% compared to competitive public cloud options, according to the release. Customers can choose from locating their OpenStack private clouds in their own data centers, in a colocation facility, or in one of Rackspace's own data centers, the companies said.

Seeking to differentiate their services from the dizzying number of cloud providers, the partners cite industry forecasts suggesting that pay-as-you-go consumption models will account for half of on- and off-premises IT and datacenter spending over the next year. It allows organisations to closely align resources to growth and gives these firms instant scale, as it will deal with traffic spikes and capacity bursts, without the need to pay for additional (and permanent) capacity.

And Rackspace and HPE also touted the advantages of their solution over a public cloud service, as its single-tenant model means that customers can "eliminate the performance and "noisy neighbour" issues commonly found in multi-tenant environments, and can more easily meet security, compliance and data sovereignty needs".

Is "pay-as-you-go" the way to go for private cloud vendors?

"If the partners aren't able to participate fully in the private-cloud model, then the money's going to flow into public cloud, and most partners aren't really equipped to monetize that with good margins or monetize that at all in many cases", he said.

"With Rackspace's private cloud expertise and service-first culture, they are well positioned to address the needs of HPE's large installed base of infrastructure customers and help reduce any cloud migration risk". "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".

The companies said their pay-per-use private cloud based on OpenStack will be available in all regions from November 28.

Other reports by Click Lancashire

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