HPE and Rackspace create pay-as-you-go private cloud

Doris Richards
November 15, 2017

"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.

The new managed service, called OpenStack Private Cloud with pay-per-use infrastructure, gives enterprises the benefits of the private and public cloud, Crenshaw said.

Rackspace and Hewlett Packard Enterprise have partnered on a new managed private cloud service for enterprises - a pay-as-you-go OpenStack cloud customers can have in their own data centers, in colocation facilities of their choice, or in Rackspace data centers.

The pay-as-you-go pricing model utilises HPE flexible capacity, in that customers only pay for what they use.

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.

According to IDC FutureScape: Worldwide Data Center 2017 Predictions, pay-as-you-go consumption models will account for 50% of on-premises and off-premises Physical IT and data center asset 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).

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

This also means there won't often be performance issues associated with shared environments, according to the vendors, while also widening their offering companies in highly regulated industries that are only able to use private cloud environments for compliance purposes.

"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." said IDC Research vice president Michelle Bailey.

While Gartner had few quibbles with Rackspace's private cloud offerings, it noted that the OpenStack pioneer's 2016 sale to a private equity investor makes "it more hard for customers to assess vendor-related risks".

And the solution will deliver peace of mind as the OpenStack Private Cloud can be consumed with pay-per-use infrastructure as a managed service.

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

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.

Other reports by Iphone Fresh

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