New Red Hat Enterprise Linux Pricing FAQs


What are the new prices and when do they take effect?

Starting June 1, 2013 Red Hat Enterprise Linux (RHEL) prices will change for Cloud, Dedicated & Managed Virtualization Servers.

Cloud Servers:  Effective June 1, 2013, all existing and new RHEL Cloud Servers will no longer pay the flat monthly OS fee of $20 or £12.50 per month per server. The current flat fee will be replaced with an additional hourly RHEL OS fee of $0.08 or £0.05 per hour (512MB – 8GB server sizes) and $0.15 or £0.10 per hour (15GB and 30GB server sizes). Please refer to the table below for pricing.

Prices subject to change. Please contact your Rackspace Account Team for the most up-to-date pricing for your specific server configuration.

Cloud Servers by Size Standard Linux Server Price Per Hour Additional RHEL OS Fee Per Hour
512MB $0.022/£0.02 $0.08/£0.05
1GB $0.06/£0.04 $0.08/£0.05
2GB $0.12/£0.08 $0.08/£0.05
4GB $0.24/£0.16 $0.08/£0.05
8GB $0.48/£0.32 $0.08/£0.05
16GB $0.90/£0.60 $0.15/£0.10
30GB $1.20/£1.00 $0.15/£0.10

Dedicated and Managed Virtualization Servers:  Effective June 1, 2013, RHEL fees for all new Dedicated Servers will start at $55 or £36.67 per month for single-processor servers (additional processors will increase your OS fee). RHEL fees for new Managed Virtualization Servers will start at $1.92 or £1.28 per day. Please refer to the table below for new RHEL prices based on server type and processor count.

Red Hat Enterprise Linux 5.x and 6.x Price Changes

Prices subject to change. Please contact your Rackspace Account Team for the most up-to-date pricing for your specific server configuration.

Environment Compute Size New RHEL OS Fee Old RHEL OS Fee
Dedicated 1 Processor $55 per month/£36.67 per month $20 per month/£9.33 per month
  2 Processors $83 per month/£55.33 per month $20 per month/£9.33 per month
  4 Processors $165 per month/£110.00 per month $50 per month/£37.36 per month
Managed Virtualization 1-4 vCPU $1.92 per day/£1.28 per day $0.70 per day/£0.28 per day
  5+ vCPU $3.60 per day/£2.40 per day $0.70 per day/£0.28 per day
  Host-Based (per processor) $101 per month/£67.33 per month N/A

NOTE:  Virtual Machines will inherit the price increase date for the hypervisor upon which they reside.

When will existing Managed Virtualization and Dedicated Servers be impacted by the new RHEL OS prices?

NEW SERVERS:  Effective June 1, 2013 RHEL OS fees for all new servers will start at $55 per month for single-processor Dedicated Servers and at $1.92 per day for Managed Virtualization. (As dictated by Red Hat’s pricing model, RHEL fees increase with the number of physical or virtual processors on your server.)  

EXISTING SERVERS:  Rackspace has negotiated a grandfather clause for existing Dedicated and Managed Virtualization Servers (ordered prior to June 1, 2013) that allows us to extend your current RHEL OS prices based on your contract expiration date.

  • Existing Dedicated and Managed Virtualization Servers currently in contract:
    • If your contract expires on or before November 1, 2013, your RHEL price will change on November 1, 2013. You have the option to renew your contract before October 1, 2013, to take advantage of the grandfather clause and pay the current RHEL price until November 1, 2014.
    • If your contract expires after November 1, 2013, but on or before November 1, 2014, your RHEL price will change on November 1, 2014.
    • If your contract expires after November 1, 2014, your RHEL price will change upon contract expiration.
  • Existing Dedicated and Managed Virtualization Servers currently out of contract or in a rolling month-to-month contract:
    • RHEL OS fees for a server in a rolling month-to-month contract or out-of-contract will change on November 1, 2013. You have the option to renew your contract before October 1, 2013 to take advantage of the grandfather clause and pay the current RHEL price until November 1, 2014.

When will my billing changes take place?

Cloud Servers customers:  Effective June 1, 2013, all existing and new Cloud Servers with RHEL will no longer have a separate OS monthly fee, but will incur the new additional RHEL license hourly fee based on server size (as stated above).

Dedicated and Managed Virtualization customers: Billing changes go into effect June 1, 2013 for all new servers ordered on or after this date. For existing servers, please refer to the impact dates provided above based on your contract status and contract expiration date.

I cannot afford the new RHEL price, what options do I have?

Cloud Servers customers: There are many other open source Linux distributions available that do not incur an additional hourly fee.  Please refer to your Control Panel for the latest versions and prices of distributions:   https://mycloud.rackspace.com/

Dedicated and Managed Virtualization customers - Available options and RHEL OS alternatives:

  • Rackspace will continue to support RHEL as part of our Linux OS portfolio. You can take advantage of the grandfather clause by adding new RHEL servers before June 1, 2013. This will allow you to pay the current lower RHEL fees until November 1, 2014.
  • Rackspace will offer alternative support and patching services for customers who do not move their existing RHEL servers to CentOS, but want to maintain their current OS costs past the grandfather clause timelines.  Your account team can provide additional infromation about this option. 
  • Or you can choose CentOS Updated by Rackspace, a low-cost open source alternative that is compatible with almost all current use cases for Red Hat Enterprise Linux that is now available to our Dedicated and Managed Virtualization customers.
    • Our CentOS offering will be backed by the same level of Fanatical Support, expertise and management (OS patching and escalation support) available for our RHEL OS offering.
    • If you choose to re-kick your existing RHEL servers with CentOS, please reach out to your account team to discuss this option and for additional information.
    • For more information about our CentOS offering, please refer to the FAQs at the following link: http://www.rackspace.com/knowledge_center/article/centos-faqs

Please reach out to your account team if you have any additional questions or would like to discuss how these Red Hat pricing changes specifically affect you and your monthly licensing fees, or to renew your contract before October 1, 2013 to take advantage of the grandfather clause for existing servers.



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