HPE & Rackspace Tout 'First Ever' Pay As You Go OpenStack Private Cloud

Inside a Rackspace data center

Rackspace and HPE have announced the release of the first pay per use private cloud, hoping to tempt in enterprise businesses that prefer private cloud environments, with the agility of public cloud.

Proponents argue that billing customers only for the private cloud services they use eliminates the cost of unused fixed capacity while simultaneously handling unforeseen bursts in cloud workloads and other traffic spikes.

Cloud services company Rackspace Inc.is teaming up with Hewlett-Packard Enterprise Co.to deliver what they say is the first pay-per-use version of OpenStack.

It can be implemented in a private cloud environment either located in the business's own data centre at a colocation facility or in a data centre managed by Rackspace, making it a highly personalised solution for the individual company.

And there is little doubt that spending on public cloud infrastructure is booming, but HPE and Rackspace believe that their new joint PAYG OpenStack Private Cloud will make private cloud 40 percent less expensive than public cloud. Furthermore, they get the benefits of the private cloud, such as a single-tenant environment and better performance, control, and security, he 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.

"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).

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".

Scott Crenshaw, Rackspace's executive vice president of private cloud, tells Channel Partners that HPE and Rackspace are "setting the new standard for what private cloud looks like and in doing so we think this is the way that every customer will want to consume private cloud in the figure".

"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".

HPE will provide the hardware, including its Gen10 servers, and hardware support, while Rackspace will manage the private clouds for enterprises, he said.

OpenStack Private Cloud will be will be generally available in all regions on 28 November, with additional solutions for Rackspace Private Cloud powered by VMware and Rackspace Private Cloud powered by Microsoft Azure Stack expected in 2018.

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.

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