HPE appears to be re-igniting its interest in OpenStack by teaming up with Rackspace to offer a private cloud with pay-per-use infrastructure.

The OpenStack Private Cloud, which is being dubbed the ‘industry’s first pay-as-you-go OpenStack private cloud,’ will be offered as a managed service.

Said to offer public cloud-like utility pricing, elastic infrastructure and ‘simplified IT’, the whole setup will run from the customer’s own data centre, a colocation facility, or a data centre managed by Rackspace.

“The launch of OpenStack Private Cloud with pay-per-use infrastructure, delivered by Rackspace and HPE, marks a pivotal moment in the private cloud market and in the industry at large,” said Antonio Neri, president of HPE. “This experience is the best of the cloud and on-premises worlds, and we fully expect this simple pay-per-use technology model to change the way enterprises make technology decisions.”

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HPE and Rackspace’s OpenStack Private Cloud will use HPE’s Flexible Capacity so that customers are able to only pay for what they use, it is claimed that this model could deliver better cost than the public cloud, saving customers “40% or more versus the leading public cloud,” but that’s according “Rackspace internal pricing analysis, savings are measured against the leading public cloud vendor.”

The single-tenant model is said to get rid of the “noisy neighbour” issue found in multi-tenant environments, with the two companies also saying that this kind of environment can also more easily meet security, compliance, and data sovereignty needs.

“With this innovative delivery model, Rackspace and HPE are removing the barriers to private cloud adoption, giving customers even more choice of technology platforms that best fit their application needs,” said Scott Crenshaw, executive vice president of private cloud at Rackspace. “We are proud to partner with HPE to continue enabling customer success with private clouds. And, with this common goal in mind, our companies plan to extend this model to Rackspace’s entire managed private cloud portfolio in the future, including VMware and Microsoft Azure Stack technologies.”

OpenStack Private Cloud will be generally available in all regions on the 28th November.