Rackspace and HPE launch PAYG private cloud

Rackspace and HPE launch PAYG private cloud

While OpenStack will be the only private cloud platform to be offered on the service at launch, Rackspace says it does not want the service to be tied exclusively to one product, and expansions to both VMware SDDC and Microsoft's AzureStack are set to launch over the next year or so.

The pay-per-use infrastructure is available as a managed service, and is another step created to remove any possible barriers to private cloud adoption.

Hewlett Packard Enterprise (HPE) and Rackspace have teamed up to offer an OpenStack Private Cloud, which is available on an "industry-first" pay-as-you-go (PAYG) pricing model.

"With this solution, enterprises receive the benefits of a public cloud - cloud-like utility pricing, elastic infrastructure and simplified IT - in a private cloud environment located in their data centre, a colocation facility or a data centre managed by Rackspace", said the two firms. Furthermore, they get the benefits of the private cloud, such as a single-tenant environment and better performance, control, and security, he said. The companies make some big claims about the potential savings the model affords, up to 40 percent compared to "competitive public cloud options", they said in the release.

The companies quote the findings of the Worldwide Data Centre 2017 Predictions report from IDC, which forecasted that pay as you go models will account for half of physical IT and data centre spending by 2018.

"We fully expect this simple pay-per-use technology model to change the way enterprises make technology decisions", Antonio Neri, HPE's president, noted in a statement announcing the private cloud partnership on Monday (Nov. 13).

A "pay-as-you-go" model like that included in OpenStack Private Cloud means customers only pay for what they use, enabling them to handle unpredictable growth bursts in workloads without paying for fixed capacity.

Meanwhile Rackspace said it intends to extend this PAYG model to its entire managed private cloud portfolio.

"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". "This pay-per-use infrastructure is a new step forward in helping enterprises deploy private clouds with improved flexibility and cost transparency".

While smaller companies are still better-suited for public clouds, Crenshaw said that in the case of large enterprises managing hundreds of applications, a private cloud remains more practical, especially when compliance requirements are in play.

The service will compete with on-premises cloud infrastructure offerings the largest public cloud providers have been rolling out lately, such as Microsoft's Azure Stack, Oracle's Cloud at Customer, and the on-premises Google cloud stack Cisco and Google are planning to bring to market.

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