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HPE and Rackspace reveal pay-as-you-go OpenStack offering

HPE and Rackspace reveal pay-as-you-go OpenStack offeringHewlett Packard Enterprise (HPE) has partnered with Rackspace to offer OpenStack Private Cloud in a pay-per-use structure.

The company’s claim this is the first pay-as-you-go OpenStack private cloud offer in the industry delivered as a managed service. The service will be available to all regions as of November 28.

Customers will have the benefits of a public cloud offer, such as the pricing structure, elastic infrastructure and a simplified IT in a private cloud environment managed by Rackspace.

“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,” Rackspace executive vice president of private cloud, Scott Crenshaw, said.

“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.”

Through HPE’s Flexible Capacity customers will pay for what they use, making it easier to handle burst capacity and traffic spikes without the need to pay for additional fixed capacity.

Rackspace claims that the flexible capacity model delivers better cost than public cloud, typically saving customers 40% or more versus the leading public cloud. These figure is based on Rackspace internal pricing analysis, savings are measured against the leading public cloud vendor.

“Customers consume OpenStack Private Cloud with pay-per-use infrastructure as a managed service with an industry-leading 99.99% API uptime guarantee from Rackspace,” the company said in a statement.

Michelle Bailey, group vice president, general manager and research fellow at IDC Research said the offering specifically addresses organizations’ needs to provide security and performance benefits, the “cornerstone of a private cloud environment.”

Rackspace is one of the creators of OpenStack, along with NASA, and is the largest operator with more than one billion server hours of OpenStack expertise.

In early September, HPE acquired US-based Cloud Technology Partners, a cloud agnostic provider specialized in moving enterprises to cloud platforms through OpenStack, AWS, Microsoft Azure and Google.

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