HPE, Rackspace partner to deliver ‘pay-as-you-go’ OpenStack private cloud; available on- and off-premises, delivered as managed service

Hewlett Packard Enterprise (HPE) and Rackspace partnered on Monday to offer OpenStack Private Cloud with pay per use infrastructure, its pay-as-you-go OpenStack private cloud, delivered as a managed service. With this solution, enterprises receive the benefits of a public cloud – cloud-like utility pricing, elastic infrastructure and simplified IT – in a private cloud environment located in their datacenter, a colocation facility or a data center managed by Rackspace.

Leveraging a “pay-as-you-go” model for private cloud means customers pay only for what they use. It enables them to handle unpredictable growth and bursts in workloads without paying for unnecessary fixed capacity. OpenStack Private Cloud with pay per use infrastructure, delivered by Rackspace and HPE, will help enterprises take full advantage of the benefits of managed private cloud.

The solution combines Rackspace’s cloud operational expertise and service-level agreements (SLAs) with HPE’s pay-per-use capability and best-in-class infrastructure, including Rackspace Private Cloud; HPE ProLiant Gen10 servers; HPE Flexible Capacity and Rackspace managed services.

Leveraging HPE Flexible Capacity, customers pay for what they use in an on-demand consumption model for infrastructure. This feature enables 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. This flexible capacity model delivers better cost than public cloud, typically saving customers 40 percent or more compared to other public clouds. Customers also maintain the performance benefits of a private cloud environment, while instantly scaling their entire private cloud capacity in a public cloud-like manner.

With a single-tenant model, customers can eliminate the performance and “noisy neighbor” issues commonly found in multi-tenant environments, and can more easily meet security, compliance and data sovereignty needs. Clients consume OpenStack Private Cloud with pay-per-use infrastructure as a managed service with an industry-leading 99.99 percent API uptime guarantee from Rackspace. This helps customers focus on their core business, while eliminating the risk and operational complexities of trying to manage a private cloud on their own.

As a creator of OpenStack, Rackspace is the world’s largest and most experienced OpenStack operator with more than one billion server hours of OpenStack expertise.

“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 at 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.”

“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.”

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 datacenter 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 at 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.”

OpenStack Private Cloud with pay per use infrastructure, delivered by Rackspace and HPE, will be generally available in all regions later this month, with additional solutions for Rackspace Private Cloud powered by VMware and Rackspace Private Cloud powered by Microsoft Azure Stack expected next year.


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