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.

The two firms are partnering to offer OpenStack Private Cloud on a pay per use infrastructure, as is used in public cloud environments but, to date, not on private clouds.

The ‘pay as you go’ style system is typically seen as one of the major advantages of public cloud, given that companies only use what they pay for. However, an increasing number of large businesses, with many applications to handle and compliance problems to consider, are choosing private cloud.

The offering will be provided as a managed service, and businesses will receive benefits such as ‘elastic infrastructure and simplified IT’. The private cloud environment can be located either in the customer’s own data centre, in a colocation facility, or in a Rackspace data centre.

As well as providing the higher levels of security and reliability expected of a private cloud environment, the ‘joint solution’ makes it 40% cheaper than public cloud, according to research carried out by Rackspace.


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HPE has not held back in its praise of the new product. The company’s president, Antonio Neri, said: “The launch of OpenStack Private Cloud with pay-per-use infrastructure, delivered by Rackspace and HPE, marks a pivotal moment in the private cloud market and in the industry at large.

“This experience is the best of the cloud and on-premises worlds, and we fully expect this simple pay-per-use technology model to change the way enterprises make technology decisions.”

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.

Though initially only launching on OpenStack Private Cloud, Rackspace private cloud EVP, Scott Crenshaw, noted the company’s intention to extend the offering. “We are proud to partner with HPE to continue enabling customer success with private clouds.

“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.”