Rackspace just launched a new private cloud service – and it’s open source

Rackspace has announced the launch of a new open source, private cloud service aimed at supporting organizations running regulated workloads.

The infrastructure specialist said Rackspace OpenStack Business will offer enterprises a “cost-effective cloud solution centered around privacy, security and control” and expands on its existing private cloud offerings.

A key focus here, the company said, centers around tackling vendor lock-in while enabling organizations to drive application development and modernization.

The new service will support a “broad range of use cases” but is designed specifically for performance-sensitive applications, as well as enterprises operating in regulated industries with strict compliance requirements.

The company said it also aims to reduce total cost of ownership (TCO) by combining an open source platform approach with enterprise-level performance.

Lance Weaver, chief product and technology officer at Rackspace Private Cloud, said the service represents the “next evolution in private cloud infrastructure”.

“This platform is built for customers requiring performance, security, privacy and control,” he said. “Delivered as a fully-managed open source platform, it provides businesses the freedom to modernize on their terms.”

The launch of the private cloud service follows on the success of Rackspace OpenStack Flex. Introduced in 2024 again as a cost-effective private cloud solution, the two services will work in tandem, the company said.

Rackspace OpenStack Business, for example, will provide a "stable foundation" for steady-state workloads, while the Flex service will offer scaling capabilities based on demand.

Rackspace taps into private cloud interest

The move by Rackspace comes amid a period of growing appetite for private cloud solutions.

A recent survey from GTT Communications, for example, found that growth rates for private cloud are currently outstripping investment in public cloud. Alternative research from Node4 also showed 97% of respondents plan to move a significant portion of workloads back on-prem.

Naturally, generative AI has been a key factor in this trend, with GTT Communications noting that rising concerns over security, and cost are all contributing to the shift.

Regulatory compliance considerations, particularly in Europe, are also adding to the growing interest in private cloud, both studies found. In recent months, a host of big tech provider have launched expanded private cloud offerings to tap into this growing interesting, including Broadcom and HPE.

What to expect from Rackspace OpenStack Business

According to Rackspace, the new private cloud service will provide a range of benefits for users, including full API access, 24/7 support, and proactive monitoring and management tools.

Rapid deployment times are a main talking point for the company in the wake of the new service. Rackspace said enterprises will be able to accelerate time-to-production in “hours instead of days, weeks, or months”.

Similarly, with a strong focus on efficiency, the company said users will be able to draw upon “predictable performance” to run applications and avoid multi-tenant resource congestion.

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