Rackspace Announces Cloud Servers

Last year, Rackspace, one of the largest web hosting companies going, went and bought a few smaller companies to add to its stable of cloud-based offerings, which to that point had consisted of Mosso. One of these was Jungle Disk, which I use for backups and file storage on Amazon S3. The other was Slicehost.

Mosso’s offerings were pretty straight-forward. For $100 a month you got a server you could develop your application on in a variety of languages and they would automatically handle scaling your app as needed. We tried it out for a bit and it worked well and as advertised.

Yesterday, Rackspace announced several new offerings, but one in particular caught my eye – their Cloud Servers product.

Cloud Servers will be priced per instance hour and will start at $0.015 per hour ($10.95 for a full month of usage). Since you only pay by the hour, it will be really easy and affordable to spin up a new instance for testing or developmentā€”and then simply remove it when you’re done.

$11 a month for a cloud server with 256 MB of RAM and 10GB storage space? Sign me up right this second. These servers will be available starting Monday, March 16. I will try them out and report back how they are. Here are additional costs and specs. Click for a larger version.

I wonder how Amazon will respond to this?

You can read more about their cloud servers and Rackspace’s other announcements here.