In July 2014, Rackspace announced two managed-service levels for its cloud infrastructure, changed how it would present cloud charges, and described stronger service-level-agreement compensation. The packages ranged from technical guidance on demand to ongoing infrastructure and application management. The prices and service terms below are historical details from the announcement—not current Rackspace offers.
What Rackspace announced
Rackspace introduced Managed Infrastructure and Managed Operations as pay-as-you-go service levels alongside its cloud infrastructure, according to DataCenterKnowledge’s July 15, 2014 report. The distinction was the level of help Rackspace staff would provide: technical guidance when requested at the entry level, versus ongoing operational involvement in the higher-touch option.
Managed Infrastructure: technical guidance when needed
Managed Infrastructure was described as the entry-level package. Customers could turn to Rackspace experts for technical guidance rather than relying on Rackspace to run their infrastructure and applications continuously.
Managed Operations: ongoing management
Managed Operations added an account manager and Rackspace staff to manage cloud infrastructure and applications on an ongoing basis. The report also described DevOps automation as part of this higher-touch service.
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Rackspace positioned the offers for organizations with established IT teams that did not view IT operations as a core competitive advantage, as well as businesses without enough IT staff to deploy and operate cloud workloads. Its product-marketing vice president said the packages were not aimed at organizations for which specialized IT operations were a strategic differentiator.
How the two service levels differed
| Service level | Staff involvement reported in 2014 | Other features reported | Historical minimum commitment |
|---|---|---|---|
| Managed Infrastructure | Expert technical guidance when needed | Ongoing application and infrastructure management not described for this level | $50, as reported by DataCenterKnowledge in July 2014 |
| Managed Operations | Account manager and Rackspace staff managing cloud infrastructure and applications on an ongoing basis | DevOps automation | $500, as reported by DataCenterKnowledge in July 2014 |
The minimums are figures reported in the 2014 announcement. They should not be treated as today’s prices, and the report does not establish whether either service level or its billing terms remain available.
What changed in cloud pricing presentation
Rackspace said it would show raw cloud infrastructure charges separately from support and services charges. The aim was to let customers compare the infrastructure portion more directly with other providers, rather than seeing only a combined bill. Rackspace’s position, as reported at the time, was that its offering included more than server or storage capacity alone.
This was a change in how charges would be broken out, not evidence that the underlying infrastructure became cheaper. The report does not provide a current rate comparison or establish how Rackspace presents bills today.
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What Rackspace said about SLA compensation and peak events
The 2014 report described two distinct compensation arrangements. Rackspace said it would raise managed-cloud SLA compensation to 10 times its standard rate, subject to a cap of 100 percent of a customer’s monthly invoice. The article said the 10-times scheme was being tested with selected customers and was planned for later general availability; that reported status does not establish whether or when it became generally available.
Separately, Rackspace described an arrangement for expected peak events. Customers giving seven to 10 days’ advance notice would have capacity provisioned, and compensation for an uptime failure during the event could be capped at 200 percent of the monthly invoice, according to the report. These were announcement terms in 2014, not verified current SLA commitments.
Rackspace vice president of product marketing Rajeev Shrivastava summarized the peak-event promise this way: “If you give us seven to 10 days’ notice, we will make sure that your application is up and running,” he said. “We will give you all your money back, if we don’t perform for you.”
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why Rackspace made the move
The offering targeted companies that wanted cloud infrastructure but needed help operating it, whether because their IT teams were stretched or because running IT was not a source of competitive advantage. It was less suited, by Rackspace’s own positioning, to businesses whose specialized operations were strategically important.
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Shrivastava said, “We’re going all-in in the managed cloud space,” adding, “The [managed services] market is growing, and we think we have a niche in the managed cloud space.” That was an executive’s assessment of the market, not an independently sourced market-size or growth measurement.
What the announcement does—and does not—tell customers now
The announcement is useful as a record of Rackspace’s 2014 service strategy: different levels of operational support, historically stated minimum commitments, enhanced SLA compensation proposals, and clearer separation of infrastructure from support charges. The July 2014 report does not verify current product availability, pricing, billing presentation, or SLA terms. Anyone evaluating Rackspace today should confirm those details directly in current service documentation and contract terms.
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