Red Hat License Fee for Rackspace Cloud Servers

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Posted on 15th September 2010 by cloudhostingguy in Cloud Hosting

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Rackspace Cloud Servers customers will now be billed for Red Hat Enterprise Linux (RHEL) instances on a monthly rather than hourly basis.    Due to changes in the Rackspace cloud server subscription arrangement with Red Hat, they can no longer offer Cloud customers hourly billing for RHEL licenses.  Rackspace will begin charging our customers a monthly licensing fee, starting in September. This license fee will not be prorated.

What this means for Rackspace Cloud Servers customers using RHEL:

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  • Instead of being billed for your RHEL license on an hourly basis, customers using Red Hat will be billed on a monthly basis (30 day billing cycle).  The Cloud Server will continue to be billed on a utility basis.
  • The new fee for RHEL will be $20 per month per server, which is an average savings of $1.60 per month for each server for a full month’s usage. This fee replaces the $.03/hour fee per server using Red Hat that is currently in place.
  • Every Cloud Server that you spin up with RHEL will be subject to a full month’s license fee, no matter how long you use it. If a Cloud Server with RH
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  1. Jesse Labrocca says:

    Very smart.. Sign up for 4 hours, get the support you need and drop it. Pay $.12 for 2 hours of support and then drop it… I can totally see why Rackspace would do that

    Thanks a lot for the post though.

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    5th October 2010 at 4:21 am

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