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.
Market analysts note that Rackspace has gradually moved away from its OpenStack public cloud infrastructure offering to focus on private cloud infrastructure and managed cloud services.
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".
The pay-per-use infrastructure is available as a managed service, and is another step created to remove any possible barriers to private cloud adoption.
The launch is a timely one for both companies because data from International Data Corp. suggests that "Pay-as-you-go consumption models will account for 50 percent of on-premises and off-premises Physical IT and datacenter asset spending by 2018". These figure is based on Rackspace internal pricing analysis, savings are measured against the leading public cloud vendor.
The pay-as-you-go private cloud offers the scalability and bursting of public cloud, while maintaining the security, privacy, and compliance needed in private cloud deployments.
A "pay-as-you-go" model like that included in OpenStack Private Cloud means customers only pay for what they use, enabling them to handle unpredictable growth bursts in workloads without paying for fixed capacity.
"We fully expect this simple pay-per-use technology model to change the way enterprises make technology decisions".
Meanwhile Rackspace said it intends to extend this PAYG model to its entire managed private cloud portfolio.
"We believe very much in a multi-cloud future where particularly medium and large companies are going to be using some public cloud, some private cloud, some on-premises, some off-premises", Rackspace ANZ senior director and general manager Angus Dorney told Computerworld. This flexible model can save customers up to 40% compared to competitive public cloud options, according to the release.
Rackspace will go direct with its Openstack on HPE offering, though the company said it did work with larger system integrators for some financial services and government customers. The providers also guarantee 99.99 API uptime.
From November 28th, businesses will be able to benefit from a pay-per-use structure when using OpenStack Private Cloud, meaning customers will now only pay for what they use, providing major cost advantages to companies of all sizes.
And additional solutions for Rackspace Private Cloud powered by VMware and Rackspace Private Cloud powered by Microsoft Azure Stack are expected to arrive next year.