Rackspace Hosting Drops Price of Cloud Bandwidth and CDN by 33 Percent

Rackspace Hosting is dropping the price for its cloud bandwidth and content delivery network services by 33 percent.

Cloud hosting provider Rackspace said Friday it is dropping the price for its cloud bandwidth and content delivery network services by 33 percent.

The move comes a few months after Rackspace upgraded its Cloud Tools Marketplace to improve the customer experience for accessing the ecosystem of applications, tools and solutions.

Rackspace is also introducing tiered pricing for its open cloud services, beginning with its object storage service Cloud Files, starting Friday.

The restructured pricing will be implemented over the next several weeks.

Rackspace is lowering its bandwidth charges from 18 cents to 12 cents a gigabyte.

Meanwhile, the company will drop volume discounts range from 10 cents per GB per month for the first terabyte, to 7.5 cents per GB per month. The per GB pricing will be even lower for storage amounts over 1024 TB.

Rackspace will extend its tiered pricing to additional products throughout the rest of the year.

“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,” said John Engates, chief technology officer at Rackspace.

The lowered pricing could potentially increase Rackspace’s already booming cloud services business, whose public cloud service, in particular, has seen strong revenue growth.

Earlier this month, Rackspace reported that its quarterly profit saw a 19 percent increase as a significant growth in its cloud adoption led to overall profitability.

A recent Rackspace study found that almost 90 percent of businesses in the US and UK have saved money by using cloud services, and more than half have put the savings back into the business through hiring more staff, increasing wages, and investing in product innovation.

Talk back: Are you now considering using Rackspace cloud services? Do you think this lowered pricing will help Rackspace increase its customer base? Let us know in the comments section.

About Justin Lee

Justin Lee has been a staff analyst with theWHIR since 2004. He writes about a range of web hosting and IT-related issues facing the industry on the WHIR website, as well the print version of the WHIR magazine. Follow him on Twitter @Justin_theWHIR.