Understanding Rackspace Services for VMware Cloud billing#

This chapter provides an overview of Rackspace Services for VMware Cloud billing.

Minimum spend commitment#

Rackspace Services for VMware Cloud requires a minimum spend commitment executed through a service order. The following list provides a glossary of terms and definitions:

  • Minimum spend commitment: The minimum amount of money you commit to spending each month. $2500 per month is the lowest spend commitment available.

  • Contract term: The length of your contract with Rackspace Technology can be month-to-month, or 12, 24, or 36 months.

  • True-up interval: We true-up your charges on a monthly basis. At the end of each month, we calculate your actual spend for license fees, compute, storage, and network resources. We also include any add-on services you might have purchased and compare that amount with your minimum spend amount.

    • At the end of a month, if you do not reach your minimum spend commitment, we charge a true-up fee that brings your invoice up to the minimum spend amount.

    • At the end of a month, if you exceed your minimum spend commitment, we apply your discount, if applicable, to the entire monthly spend amount.

  • Discount: For 12-, 24-, and 36-month terms, if for any month during your contract, you spend more than your minimum commitment, you receive a discount on the entire monthly amount that aligns with the length of your contract.

Billing example#

  • Minimum monthly spend commitment: $2500

  • Term: 24 months

  • Discount amount: 2%

Month

Actual monthly spend

Discount applied

True-up amount

Monthly invoice

1

$1250

$0

$1250

$2500

2

$2150

$0

$350

$2500

3

$5675

$114

$0

$5562

4

$7500

$150

$0

$7350

5

$4900

$98

$0

$4802

6

$6225

$125

$0

$6101

7

$5000

$100

$0

$4900

8

$9800

$196

$0

$9604

9

$4250

$85

$0

$4165

10

$6575

$132

$0

$6444

11

$5175

$104

$0

$5072

12

$8575

$172

$0

$8404

Totals

$67,075

$1274

$1600

$67,402

VM actions that affect billing#

The following table lists VM actions and their impact on billing:

VM action

Impact on Pay-as-You-Go

Create a VM

Storage billing begins immediately. Compute charges begin when you power on the VM.

Power on a VM

You incur compute and storage charges.

Power off a VM

You do not incur compute charges, but you do incur storage charges.

Shut down the guest OS

You do not incur compute charges, but you do incur storage charges.

Suspend a VM

You do not incur compute charges, but you do incur storage charges.

Assign a public IP

No impact on billing.

Resize VM

Compute resource billing changes.

Resize or add a vDisk

Storage billing changes.

Apply a different storage policy

Storage billing changes.

Create a VDC

No impact on billing.

Create a user

No impact on billing.

Pay-as-You-Go Resources#

Pay-as-you-go resources are available in an on-demand pay-as-you-go allocation model with no upfront resource allocation. We bill you in arrears only for what you use, so this allocation model is ideal for highly seasonal, variable, transient workloads.

The pay-as-you-go allocation model includes the following:

  • Multi-tenant compute resources

  • Predefined VM sizing policies

  • Rackspace Services for VMware Cloud commits resources to the VM when you create the VM in the Organization VDC.

  • Pay-as-you-go pricing includes compute infrastructure and Platform Support.

Cost of VM resources#

  • If you are a Rackspace customer and want to know the rates we charge for compute, networking, and storage resources, contact your Customer Success Manager.

  • If you are a prospective customer and want to know the rates we charge for compute, networking, and storage resources, contact our Sales Team or call Sales at 1-800-961-2888.

Frequently Asked Questions#

This section provides a list of commonly asked billing questions and answers:

Question: Do I pay extra for the hypervisors that run my VMs?

Answer: There is no extra charge for the hypervisors. The cost of the VM includes all the compute infrastructure.

Question: If I have one large VM or two VMs that use half as many resources each, is there a difference in how much I pay?

Answer: For pay-as-you-go, the amount you pay depends on the sizing policy you select when you create a VM.

Question: Do you offer OS support for the VMs?

Answer: OS support for VMs is not available currently. In the future, we plan to provide OS support as an add-on service offering.

Question: Do I have to pay for the VMs if I’m not using them?

Answer: You pay for any allocated storage regardless of whether the VMs are powered off or on. You pay for the compute resources (CPU, RAM) only when the VM is running.

Question: Do you charge extra for vApps?

Answer: No, vApps are free of charge.