Rackspace has partnered with Hewlett Packard Enterprises on a new managed service for enterprises that combines the pay-as-you-go pricing model used in public clouds with the single-tenant environment of a private cloud.
The service, called OpenStack Private Cloud, will be generally available starting Nov. 28, Rackspace said in a blog post this week. Under the partnership, HPE will provide the hardware and hardware support, while Rackspace will manage the private clouds for enterprises.
Targeted at large enterprises, the new private cloud offering will compete with on-premises cloud infrastructure services that some of the largest public cloud providers have recently announced. That includes Microsoft’s Azure Stack, along with offerings from Oracle and Google.
“With this innovative delivery model, Rackspace and HPE are removing the barriers to private cloud adoption, giving customers even more choice of technology platforms that best fit their application needs,” Scott Crenshaw, Rackspace’s executive vice president of private cloud, said in a statement.
Rackspace says it’s the cloud computing industry’s first pay-as-you-go pricing model for a private cloud offering, allowing customers to receive the benefits of a public cloud — like instant scaling and utility pricing — in a private cloud environment located in their datacenter.
That will allow enterprises to grow their server and storage needs and handle bursts in workloads without having to pay the upfront equipment cost, Crenshaw said. Instead of taking weeks or months to build new capacity, customers can increase server or storage capacity within seconds like they can in the public cloud.
The cost of the new service will vary based on a customer requirements, Crenshaw said, but Rackspace did some price testing and determined that a typical customer would save 40 percent compared to Amazon Web Service’s public cloud.
Rackspace says it plans to expand the pay-as-you-go private cloud service on VMware and Azure Stack.