HPE and Rackspace Partner to Deliver Pay-as-You-Go OpenStack Private Cloud

OpenStack-CloudHewlett Packard Enterprise (HPE) and Rackspace have partnered to offer OpenStack Private Cloud with pay per use infrastructure. With this solution, enterprises would 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.

“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,” said Antonio Neri, President of HPE. “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.”

OpenStack Private Cloud with pay per use infrastructure, delivered by Rackspace and HPE, will be generally available in all regions on November 28, with additional solutions for Rackspace Private Cloud powered by VMware and Rackspace Private Cloud powered by Microsoft Azure Stack expected in 2018.

Private Cloud Adoption

According to IDC FutureScape: Worldwide Datacenter 2017 Predictions, “Pay-as-you-go consumption models will account for 50 percent of on-premises and off-premises Physical IT and data center asset spending by 2018.”

“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,” said Scott Crenshaw, Executive Vice President of Private Cloud, Rackspace. “We are proud to partner with HPE to continue enabling customer success with private clouds. And, 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.”

Leveraging a “pay-as-you-go” model for private cloud means customers pay only for what they use. It would enable them to handle unpredictable growth and bursts in workloads without paying for unnecessary fixed capacity.

Key features of OpenStack Private Cloud with pay per use infrastructure, delivered by Rackspace and HPE, would include:

  • Pay-as-you-go pricing – Leveraging HPE Flexible Capacity, customers pay for what they use in an on-demand consumption model for infrastructure. This feature would enable private cloud customers to more closely align resources to growth and handle burst capacity and traffic spikes without the need to pay for additional fixed capacity.
  • Agility and instant scalability – Customers would maintain the performance benefits of a private cloud environment, while instantly scaling their entire private cloud capacity in a public cloud-like manner.
  • Security, compliance, data sovereignty – With a single-tenant model, customers would be able to eliminate the performance and “noisy neighbor” issues commonly found in multi-tenant environments, and can more easily meet security, compliance and data sovereignty needs.
  • Managed expertise – Customers consume OpenStack Private Cloud with pay-per-use infrastructure as a managed service with a 99.99 percent API uptime guarantee from Rackspace. This would help customers focus on their core business while eliminating the risk and operational complexities of trying to manage a private cloud on their own.

“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, IDC Research. “In a world where digital transformation is rapidly impacting every industry, enterprises need to both modernize their IT and remain agile to maintain competitive advantage. The OpenStack Private Cloud offering from Rackspace and HPE specifically addresses organizations needs to provide security and performance benefits, the cornerstone of a private cloud environment. With Rackspace’s private cloud expertise and service-first culture, they are well positioned to address the needs of HPE’s large installed base of infrastructure customers and help reduce any cloud migration risk. This pay-per-use infrastructure is a new step forward in helping enterprises deploy private clouds with improved flexibility and cost transparency.”

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