On Monday, Rackspace and HPE announced a new OpenStack-based private cloud offering available in a pay-per-use model. The joint solution is the industry’s first pay-as-you-go OpenStack private cloud solution, according to a press release.

Since this private cloud product will be delivered as a managed service, it will bring some of the benefits associated with the public cloud to a private solution, the release said. Customers can choose to have the private cloud located in their own data center, in a colocation facility, or in a data center managed by Rackspace, according to the release.

“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, executive vice president of private cloud at Rackspace, said in the release.

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IDC FutureScape data cited in the release predicts 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.” So, it makes sense that HPE and Rackspace are targeting this model in their offering.

The pay-as-you-go pricing will be managed through HPE Flexible Capacity. With this model, customers pay for the capacity they need at a given time, and can more easily scale and burst to fit changing business needs. This flexible model can save customers up to 40% compared to competitive public cloud options, according to the release.

Being a single-tenant model means that HPE and Rackspace’s private cloud will be able to handle many security, compliance, and privacy needs, the release said. However, it can also maintain this while scaling as needed.

The new private cloud will provide a 99.99% API uptime guarantee from Rackspace as well, the release noted.

“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.” IDC Research vice president Michelle Bailey said in the release. “This pay-per-use infrastructure is a new step forward in helping enterprises deploy private clouds with improved flexibility and cost transparency.”

The new HPE and Rackspace pay-per-use private cloud will be available in all regions on November 28, 2017.

The 3 big takeaways for TechRepublic readers

  1. A new pay-as-you-go private cloud solution from HPE and Rackspace can provide up to 40% savings over comparable public cloud solutions.
  2. 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.
  3. The HPE and Rackspace pay-per-use private cloud will be available in all regions on November 28, 2017.