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What products are included in the volume and commitment discounts?

All flavors of Cloud Servers are included in the volume and commitment discounts. This applies to Performance Cloud Servers, Standard Cloud Servers, and First Generation Cloud Servers under cloud accounts with a Managed Infrastructure service level or a Managed Operations service level. Discounts apply toward combined raw infrastructure and service level charges, and new Cloud Server flavors will be included as they become available.

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How can I apply for the discount?

All customers with more than $5000/month spend on Cloud Servers are automatically enrolled in the volume discount program. Active Rackspace customers can enroll in the commitment discount program by contacting their account manager or opening a ticket in the control panel. New Rackspace customers can complete the form on the discounts page.

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Is spend aggregated for different flavors of Cloud Servers in the same account?

Yes, the discount is calculated on the aggregated spend across all flavors of Cloud Servers, at the account level, within a geography (e.g., all regions in US).

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Is spend on Cloud Servers in the same account aggregated across geographies?

No, the discount will be aggregated, at the account level, by geography (e.g. all regions of US), across flavors of Cloud Servers. Example: if there is spend in the US (IAD, DFW, ORD), these regions will be aggregated under the US geography and if there is spend in AUS (SYD), this region will be separately aggregated under the AUS geography.

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Can I increase my commitment amount during my term?

Yes, you can increase the commitment amount at any time during the term, up to double the previous month’s commitment amount. Changes to the commitment amount are reflected in the next billing cycle. The effective end date of the original commitment will stay the same.

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Can the commitment amount be decreased during the term?

No, the commitment amount cannot be lowered except in the event of Cloud Servers price changes. If the price change causes the spend to fall below the commitment amount (based on previous month’s invoice), you will get a one-time opportunity to lower the commitment amount by the effective percentage of the price drop.

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What happens if my spend is over the commitment amount?

Spend over the commitment amount will automatically receive a volume discount.

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Can I cancel a commitment agreement?

Yes, a commitment agreement can be cancelled at any time, but you may incur a penalty. The penalty would be the lesser of the total discounts received or the remaining contract value. The commitment would be cancelled at the end of the billing cycle. There is no proration.

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When is a new commitment effective?

All new commitments are effective in the next billing cycle.

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If I choose to prepay, when is my payment billed?

Prepayment amounts are billed immediately upon enrollment. Prepayments cannot be prorated and are non-refundable. All new prepayments take effect in the billing cycle immediately following your enrollment.

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How do volume and commitment discounts impact my invoice?

Cloud Servers charges appear on your invoice grouped by server. If your Cloud Servers spend is eligible for discounts, the discounts will be appear aggregated by geography and pricing tier on the invoice. Discounts will appear on your invoice for the periods in which you generated usage.

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What are the underlying discount tables used in calculating my monthly discounts?

Volume Discounts

Your Cloud Servers Spend Your Discount
First $5,000 0.0%
Next $5,000 4.0%
Next $15,000 8.0%
Next $25,000 12.0%
Next $50,000 16.0%
Next $100,000 20.0%
Over $200,000 Contact us

Commitment Discounts

6-month term 12-month term 18-month term 24-month term 36-month term
First $5,000 committed 4.0% 8.0% 12.0% 16.0% 20.0%
Next $5,000 committed 8.0% 12.0% 16.0% 20.0% 24.0%
Next $15,000 committed 12.0% 16.0% 20.0% 24.0% 28.0%
Next $25,000 committed 16.0% 20.0% 24.0% 28.0% 32.0%
Next $50,000 committed 20.0% 24.0% 28.0% 32.0% 36.0%
Next $100,000 committed 24.0% 28.0% 32.0% 36.0% 40.0%
Over $200,000 committed Contact us Contact us Contact us Contact us Contact us

Prepayment Discounts

6-month term 12-month term 18-month term 24-month term 36-month term
First $5,000 prepaid 7.0% 13.0% 20.0% 26.0% 35.0%
Next $5,000 prepaid 11.0% 17.0% 24.0% 30.0% 39.0%
Next $15,000 prepaid 15.0% 21.0% 28.0% 34.0% 43.0%
Next $25,000 prepaid 19.0% 25.0% 32.0% 38.0% 47.0%
Next $50,000 prepaid 23.0% 29.0% 36.0% 42.0% 51.0%
Next $100,000 prepaid 27.0% 33.0% 40.0% 46.0% 55.0%
Over $200,000 prepaid Contact us Contact us Contact us Contact us Contact us

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