Rackspace drops Open Cloud prices

News Jane McCallion Feb 22, 2013
Piggy Bank
Piggy Bank

Hosting company introduces tiered pricing and reduces bandwidth charges by 33 per cent

Infrastructure-as-a-Service (IaaS) company Rackspace is lowering the price of its cloud bandwidth and content delivery network (CDN) services by 33 per cent, from £0.12 to £0.08 per GB.

The company is also introducing automatic tiered pricing for its Open Cloud server and storage service, starting with its object storage offering, Cloud Files.

The first terabyte of storage will be charged at £0.07 per month, decreasing incrementally down to £0.052.

The company said customers deploying bandwidth-intensive workloads serving large amounts of content, such as video streaming, will benefit from the lower price points.

J.R. Arrendondo of Rackspace said in a blog post there would be “no nickel and diming”.

“While we will continue to drive prices down as we scale, we are also committed to a core philosophy: price simplicity is a feature of Open Cloud.

“Simplicity is one of the reasons why we don’t charge you for many little things that are almost impossible to estimate when you deploy your application,” said Arrendondo.

Bandwidth from the datacentre to the CDN edge location, HTTP CDN requests, SSL delivery over the Akamai CDN, I/O for Cloud Block Storage, DNS usage and API requests, and numerous requests in Cloud Files will therefore remain free, Arrendondo claimed.

John Engates, chief technology officer at Rackspace echoed Arrendondo’s comments.

“This simple and straightforward pricing approach is a key part of how we help customers take advantage of the real value of the Rackspace Open Cloud, particularly for the next generation of bandwidth and content-centric web applications, which must deliver quality user experiences on a mobile and global basis,” Engates said.