HPE, Rackspace to launch pay-as-you-go OpenStack private cloud service

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Hewlett Packard Enterprise (HPE) and Rackspace are teaming up to offer what they’re billing as the industry’s first pay-as-you-go OpenStack private cloud, delivered as a managed service.

The OpenStack Private Cloud with pay-per-use infrastructure enables enterprises to 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 center, a colocation facility or a data center managed by Rackspace.

HPE and Rackspace say the solution will help enterprises take full advantage of the benefits of managed private cloud, including pay-as-you-go pricing, agility and instant scalability, enterprise-grade security and reliability and managed expertise.

According to IDC FutureScape: Worldwide Datacenter 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.”

“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, group vice president, general manager and research fellow at IDC Research. “This pay-per-use infrastructure is a new step forward in helping enterprises deploy private clouds with improved flexibility and cost transparency.”

OpenStack Private Cloud will be generally available in all regions on November 28. Scott Crenshaw, executive vice president of private cloud at Rackspace, said the companies plan to extend this model to Rackspace’s entire managed private cloud portfolio in the future, including VMware and Microsoft Azure Stack technologies, sometime in 2018.

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