Our goal at Rackspace is to serve our customers so well that they will grow with us and never leave. We’re always looking for ways to reward long-term and high-volume customers. In that spirit, today we are launching a new loyalty program that offers savings on our cloud compute products. The essence of the program is simple: the more you use and the longer you stay, the more you save.
Customers can get discounts in three ways, for:
The benefits are:
- Discounts for increased spending and/or longer commitments
- Prepayments that yield bigger discounts, but are not required
- Freedom and flexibility to make changes without penalty: you commit to a spending amount, not to a fixed infrastructure
- Aggregated spending across regions and compute flavors, to maximize savings
The first element of the program is a volume discount for customers who spend more than $5,000 a month in the U.S, £4,000 in the U.K., and US$6,000 in Australia and Hong Kong. The discounts are graduated so that the more you spend above the minimum, the greater percentage discount you will receive. There is no commitment associated with this part of the program, as discounts will be applied automatically after the minimum is achieved.
At this time the volume discount is applied account by account. We cannot aggregate spending across accounts for discounting purposes, but we will include that feature in the future.
We are, however, aggregating spending across all of our compute platforms including the Performance Cloud Servers that launched yesterday in our Northern Virginia region, and that will be available in all U.S. regions and the U.K. later this month. We also are aggregating spending across all regions within a country. For example, if an account is using Next Gen Standard Cloud Servers and Next Gen Performance Cloud Servers in our Dallas and Northern Virginia regions, all of that spending will be aggregated for discounting. This element of the program is available in all of our regions worldwide, but only regions within the same country will be aggregated. Spending for licenses and the hourly charge for Managed Cloud are also included in the spending that qualifies for volume discounts. Look for additional compute products to be included as our cloud portfolio expands.
To save even more, customers have the option to commit to a minimum level of monthly spending (based on the same minimum amounts used for the volume discount) over a period of 6, 12, 18, 24 or 36 months. Spending beyond that commitment amount will qualify for the volume discount so that every dollar of spending is discounted. In this model, the commitment amount after discount will be charged on the first day of the account’s billing cycle.
For example, if you commit to $20,000 of monthly spending for 24 months, you will receive a discount of 21% or $4,200. That means that on the first day of your billing cycle you will receive a charge for $15,800 for the next 24 months. Any spending above that amount will be discounted in the next billing cycle, after a volume discount is applied. The same aggregation flexibility designed into the volume discount is also built into the commitment discount.
You can increase your commitment at any time without extending the term of your commitment. Reductions in your commitment, however, are only allowed at the end of the term. Since the discount is based on spending, you get maximum flexibility to build and change your configuration as you like. You will not be locked into flavor sizes, flavor classes or regions. As long as you meet your committed spending amount you will maximize your discount and retain the freedom to make changes as necessary to your configuration and regions within a country, without penalty.
Customers can prepay the entire term for the largest available discount. Customers who spend above the prepaid amount will also receive a volume discount for that spending. This element of the program retains all of the benefits mentioned above. Please click here to see all of the details for this program.
The commitment and prepayment elements of the program are available today in the U.S., the U.K., and Australia. They will be available in Hong Kong next month.
We are excited to offer our customers this loyalty program so that as we grow together customers can realize lower unit costs. Click here to calculate your potential savings. If you have any questions, please contact your account manager or business development consultant. If you’re not already a customer, you can get your questions answered here.