Cloud Computing: Rackspace Cuts Network Bandwidth, Storage Prices

February 25, 2013 Off By David

Grazed from InformationWeek. Author: Charles Babcock.

Rackspace lowered cloud storage prices for volume customers Friday, and it will lower prices on its network bandwidth and content delivery services in a bid to compete more strongly with Amazon Web Services and Microsoft’s Windows Azure services. Rackspace reduced pricing 33%, from $0.18 to $0.12 per GB, for moving data and content over its Rackspace Cloud network and the Rackspace content delivery network (CDN).

Enterprises and online information services use CDNs to pre-distribute key content to Internet servers around the world, owned by CDNs such as Akamai or Edgecast, so that response times to users seeking that content will come from a server close to them. When content is downloaded from a server in the same region as the user, response times can be cut by a third or half. Among cloud service providers, Rackspace CDN competes with Amazon’s CloudFront and Microsoft’s Windows Azure CDN…

Rackspace customers won’t see the reduced bandwidth pricing in their bills until their current monthly bill has rolled over into a new billing period. At the same time, Rackspace implemented a storage price reduction, effective Feb. 22. The entry level price of $0.10 per GB for the first TB remains the same. But if you are a volume user, the price declines after the first TB. Rackspace used to maintain the $0.10 per GB, regardless of volume. "We wanted to incentivize larger customers" to use more storage, said Rackspace CTO John Engates…

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