Along with the price reduction, Rackspace announced that it will implement tier pricing for its open cloud portfolio, the first beneficiary of the new policy will be the Cloud File service. Cloud File customers will benefit from various discounts ranging from 10c/month per GB for the first 1 TB, decreasing to 7.5 cents/month per GB or even lower for storage amounts over 1024 TB.

Bandwidth costs for Rackspace customers with bandwidth intensive applications will be significantly lower – the price will drop to 12 cents/GB from the previous 18 cents/GB.

This move intends to make the company more competitive, especially against players like Amazon Web Services, the market top dog. John Engates, Chief Technology Officer at Rackspace, said, “The Rackspace Open Cloud is built upon a simple pricing model with no hidden costs or extra charges.”

“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”, he added.

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