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Rackspace Announces OnMetal Cloud Servers General Availability and Pricing

API-Driven Bare Metal Servers Optimized to Deliver Greater Value and High Performance for Workloads at Scale

SAN ANTONIO, TX--(Marketwired - July 24, 2014) - Rackspace (NYSE: RAX), the #1 managed cloud company, today announced the general availability and pricing of OnMetal™ Cloud Servers -- an API-driven, single-tenant Infrastructure-as-a-Service offering. The product is designed for customers with rapidly growing infrastructure footprints who seek the agility and elasticity of cloud along with the simplicity and cost-efficiency of colocation.

OnMetal Cloud Servers are built with an Open Compute design with no moving parts and provide enhanced reliability for large-scale applications. In addition, these servers are optimized for workloads at scale such as databases, low-latency caching and handling a large number of web requests. 

"OnMetal Cloud Servers are an essential piece of our managed cloud portfolio. They provide a significant performance advantage over virtualization-based alternatives at a competitive price point," said Taylor Rhodes, president of Rackspace. "These servers, combined with Fanatical Support®, provide businesses with a faster, more nimble solution that delivers better overall value with higher performance."

Product Highlights

  • OnMetal Compute - Features 10 cores and 32GB RAM. This flavor can power large-scale web servers, application servers, queue processors and load balancers. In recent SysBench benchmark testing, OnMetal Compute was approximately 14 percent faster than the tested virtualized counterpart. The OnMetal Compute flavor also performed nearly twice as fast as its tested virtualized counterpart in UnixBench testing. In addition, OnMetal Compute offers the highest number of cores per dollar versus comparable virtualized products.
  • OnMetal Memory - Features 12 cores and 512GB RAM that can power caches, search indexes and in-memory analytics. This flavor is optimized for the most GB of RAM per dollar versus other comparable solutions. 
  • OnMetal I/O - Features 20 cores, 128GB RAM, 3.2TB PCIe flash drive, which can power large NoSQL data stores, traditional SQL databases and Online Transaction Processing (OLTP) applications. This flavor maximizes the number of database transactions per dollar. PostgreSQL benchmark (pgbench) showed nearly a 2x increase in transactions per second compared to the closest Rackspace comparable virtualized offering (Performance 2-120GB).

For full results of the benchmark tests referenced above, please see Rackspace's latest OnMetal blog post

Pricing Structure
Customers are billed by the minute and the prices below reflect the cost for an average month. OnMetal Cloud Servers are offered with Rackspace's two new Managed Cloud service levels: Managed Infrastructure and Managed Operations. Customers will automatically receive volume discounts if their total cloud compute usage exceeds $5,000 per month.

                                                                            
          ------------------------------------------------------------------
                                Monthly Pricing per Server                  
          ------------------------------------------------------------------
                Managed Infrastructure             Managed Operations       
                                                                            
                Raw                              Raw                        
          Infrastructure Service    Total  Infrastructure Service    Total  
  Flavor      Charge     Charge*   Charge      Charge     Charge*   Charge  
----------------------------------------------------------------------------
                                                                            
OnMetal                                                                     
 Compute       $500        $50      $550        $500        $200     $700   
                                                                            
OnMetal                                                                     
 Memory       $1,600       $50     $1,650      $1,600       $200    $1,800  
                                                                            
OnMetal                                                                     
 I/O          $1,750       $50     $1,800      $1,750       $200    $1,950  
          ------------------------------------------------------------------
                                            *Minimum service charge applies 

"Rackspace has a clear edge in delivering both managed OpenStack powered private clouds and OpenStack-based public clouds. Using that edge to bridge the gap between dedicated servers and IaaS with this OnMetal offering will expand the range of choices for Rackspace customers," said Carl Brooks, research analyst at the 451.

OnMetal Cloud Servers are currently available in the Rackspace Northern Virginia data center and will become available at other North American data centers later this year. The servers will be available in Rackspace's International regions in 2015.

To learn more about OnMetal Cloud Servers and pricing, please visit http://www.rackspace.com/cloud/servers/onmetal/.

About Rackspace
Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs -- whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune's list of 100 Best Companies to Work Forrackspace.com.

Forward Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical facts are statements that could be deemed forward-looking statements, including any statements concerning expected development, performance or market acceptance associated with OnMetal Cloud Servers; anticipated operational and financial benefits from OnMetal Cloud Servers; any statements of expectation or belief directly relating to Rackspace business derived from the benchmark results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from OnMetal Cloud Servers may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely affect the product's benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product; and (vi) other risks that are described in Rackspace Hosting's Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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