The Open Cloud Has New Pricing For Bandwidth And Storage

Today we are announcing two changes to our pricing model to benefit bandwidth and content-centric applications:

  • We are lowering the base price for bandwidth across our entire cloud portfolio (including Cloud Servers, Cloud Files and Cloud Load Balancers) and CDN by 33 percent, from $0.18 to $0.12 per GB in the US and from £0.12 to £0.08 per GB in UK. If you are interested in our plans for volume discounts, please reach out to us to learn more.
  • We are implementing automatic tiered pricing for our Open Cloud product portfolio, starting with Cloud Files, which will have the following pricing tiers:

As always, there is never a charge for transaction requests in Cloud Files (PUT, POST, GET, etc.).

Your CDN usage starting March 1, 2013 and your outbound bandwidth usage starting on your March account anniversary date will receive the new prices; while Cloud Files tiered pricing will be effective today, February 22, 2013. Rackspace will roll out automatic tiered pricing for additional products throughout 2013.

No nickel and diming

While we will continue to drive prices down as we scale, we also are committed to a core philosophy: Price simplicity is a feature of the Open Cloud. As the cloud matures, the complexity and hidden charges in many cloud offers have become a problem for users to decipher and understand.

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. Here is a sample list of things you get for free at Rackspace:

  • Free bandwidth from the datacenter to the CDN edge location
  • Free PUT, POST, LIST, HEAD, GET and DELETE requests of Cloud Files object storage
  • Free HTTP CDN requests
  • Free SSL delivery over the Akamai CDN
  • Free I/O for Cloud Block Storage
  • Free DNS usage and API requests

Take a look at the screenshot below, borrowed from the pricing calculator of AWS, specifically from their default “Large Web Application (All On-Demand)” pricing scenario:

If you look closely at the row labeled “EBS IOPS” you will see that in that default configuration, out of the $718.32 monthly total charge for the compute service, $105.41 is the cost of storage IOPS. While that looks like 15 percent of the total compute cost category, it is really an 87.8 percent premium over the raw storage cost (or $105.41 for IOPS divided by $120.00 of actual volume storage). Your scenario may vary from that default one, but the point is that at Rackspace you don’t pay for I/O.

Storage is one of the cost variables you would know before deploying your application. Unfortunately for many, I/O is complex and less predictable. This fact makes it hard to understand the price you are actually signing up for when you launch a service. It also makes it difficult to perform an “apples to apples” comparison among providers. Our goal is not only simplicity but a competitive total price net of all these small (but often real) charges.

The usage of the Open Cloud is driving efficiencies of scale and we are happy to share those gains with our users. And we will always work to make the Open Cloud simple to use and simple to budget for.

As usual, let me know what kinds of cool projects you are working on. You can comment here or reach out to me @jrarredondo.

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  1. I’m developing a start up that plans to ultimately make use of rackspace cloud files for storage. However during the development stage, I’m having to use S3 to keep the costs down – they offer a free tier that is sufficient for development purposes. Does rackspace plan to match this?


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