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Rackspace eliminates hourly billing for Red Hat cloud instances

Citing changes in its licensing deal with Red Hat, Rackspace will now charge a monthly fee for open source cloud instances.

The Daily Cloud

Red Hat instances now charge per month on Rackspace
Rackspace has somewhat sheepishly switched its Red Hat Enterprise Linux (RHEL) cloud instances from hourly billing to a monthly fee, apparently due to changes in its own licensing deal with Red Hat. The hosting and cloud provider apparently feels bad enough about the move to give itself a haircut: the new fee is $20 per month, which is a savings of $1.60 over the old rate (if you ran your server for a full month).

"Bad call on Red Hat's part; it forces a lot of people to use CentOS (or a non-Red Hat clone) for pre-prod and development, in which case why not use that for production, too?" said a commenter on the post. CentOS, the bare-bones RHEL spin-off, is still available under the true cloud pricing. The same commenter also noted that with the new paradigm of cloud development, users may not feel like migrating applications from one operating system to another, and Red Hat could indeed lose potential production customers.

Whatever the reason, it definitely looks bad for Red Hat to make such a goof on a high-profile cloud, especially as it's trying to push its own toolset for cloud computing. What was hard to grasp about "pay-as-you-go"?

Professional financiers give cloud a thumbs up
Community website for corporate financiers Proformative tapped its user base of bean counters and pocket-protected human calculators to find out what they thought about the economic benefits of cloud computing.

The results won't shock an industry watcher, but they come from a class of professionals not known for their enthusiastic embrace of novelty. Cloud is inevitable, Proformative found: small companies are adopting it now, and larger ones are moving in phased, deliberate steps.

Dig Deeper on Cloud computing pricing and economics

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