Launching On-Demand Pricing by Rackspace and HPE

Mike Allen
June 22, 2018

Rackspace has added pay-as-you-go capability to its VMware and Kubernetes private cloud services. For a long time, this feature was only available on the public cloud.

In partnership with Hewlett Packard Enterprise, Rackspace will now offer on-demand pricing to both its VMware private cloud, as well as its Kubernetes private cloud. VMware and Kubernetes have existed for one year and one month respectively.

Rackspace customers will be in a position to build and deploy apps through the open source container-orchestration platform.

How Rackspace Implements the Pay-As-You-Go Model

Rackspace uses its VMware and Kubernetes cloud services to install and manage private cloud infrastructure. VMware and Kubernetes can either be hosted at the clients’ data center, third-party colocation facilities or in data centers owned by Rackspace.

So as to help customers to easily scale on demand, Rackspace installs the additional hardware in advance. Rackspace uses HPE’s new GreenLake Flex Capacity to enable the pay-as-you-go pricing model.

Henceforth, enterprise customers can get additional capacity the instant they need it. They can now pay for capacity when they use it. 

A Preview of How Rackspace Did Client Scaling in the Past

Prior to this change, Rackspace did capacity planning with customers to estimate their needs. In case the customer ran out of space, it would take almost a month to deploy new private cloud hardware.

Servers in a data center (https://pixabay.com/en/computers-information-technology-2653005/

In the past, companies had to choose between the benefits of the public clouds and those of the private cloud. The private cloud offers custom cost control, security and compliance. The private cloud offers elasticity and agility. 

Rackspace and HPE bring the flexibility of the public cloud to the private cloud. The two companies partnered to give clients the OpenStack Private Cloud on their premises. When installed, clients can implement the pay-as-you-go pricing model. 

Pay-As-You-Go Has Leveled the Playing Field between Private and Public Cloud Providers

Rackspace says that its Kubernetes and OpenStack private cloud services are the first to offer an on-demand subscription model in the industry.

By introducing the pay-as-you-go model in the private cloud, companies like Rackspace have eliminated the competitive advantage that public cloud services once had.

The Pay-As-You-Go Model Meets the Needs of both Developers and IT Operators

Rackspace is continually changing its products and services to best meet customer needs. For instance, the Kubernetes-as-a-service is revolutionary because it allows enterprise developers to build applications in containers. This is what enterprise developers have always wanted.

A developer coding (https://pixabay.com/en/work-typing-computer-notebook-731198/

Using containers, developers can build advanced modern applications for mobile devices and online interactive applications. 

The needs of developers and those of IT operators usually differ. On one hand, developers want access to container platforms. On the other hand, IT operators are concerned about budget and time. 

Rackspace caters to both the needs of both IT operators as well as developers in a way that’s easy for them to consume.

The Container Strategy is the Future of Enterprises

Almost every enterprise today is implementing a container strategy for two main reasons. First, it enables them to build new applications. Second, it allows them to migrate legacy applications into the cloud, which is easier to do when placed in containers than through other means.

By introducing the pay-as-you-go capability in its private cloud-as-a-service, Rackspace’s customers get many benefits. These include strategic flexibility, economic benefits, faster migration to the cloud and more control over data and architecture.

Currently, the pay-as-you-go feature is only available for the Kubernetes private cloud. The pay-as-you-go will be available for VMware private cloud later this summer.



Mike Allen

Rackspace has added pay-as-you-go capability to its VMware and Kubernetes private cloud services. For a long time, this feature was only available on the public cloud.