Feb 042016

Amazon Vs Rackspace

Amazon (AWS) is a huge cloud company that needs no introduction. It has surpassed all cloud providers in every way and will continue to do well in the future. With new data centers popping up around the world and a massive governmental contract with the United States makes it a very tough competitor to beat. Given the fact that AWS dominates cloud is a reason they must be considered by all small businesses for their cloud solution. Rackspace on-the-other-hand is a smaller based cloud provider that uses API. Rackspace challenges AWS on a few levels which makes it an ideal cloud service provider to compare AWS with.

What Your Startup Needs Are

First, evaluating what a startup needs is the only way a business can figure out which cloud to go with. Questions like:

  • How much storage will the startup need?

  • What is the budget?

  • What are the expectations on performance?

Secondly, a startup needs to consider what kind of performance they will likely get from the cloud. Rackspace is a variable performance cloud. This means that one client may need 12GB of space and another only 6GB of space, but the client with the most storage needed gets the storage space first and the performance is better. This may not be a better solution for a startup that requires very little cloud space yet needs to have optimal performance. AWS has a dedicated platform that doesn’t differentiate between the biggest requirements. AWS makes it fair and equal in the performance category.

The All Mighty Dollar: Costs

Large businesses like IBM and GE are using AWS, but for good reason, they are big companies that can afford AWS’ prices and demand huge space. Startups need to consider the price. It may not be necessary to spend a lot of money for cloud and still get award winning Block Storage that Rackspace offers that is comparable to AWS’ Elastic Block Storage.

Rackspace is charging .10 cents for 1 GB Storage and AWS is .14 cents per 1 GB storage up to 1TB. This means Rackspace is cheaper by a few cents. AWS has many options and prefers bulk purchase for a term of a few years. This is when it may not be ideal for a startup as they will want to have spot charges over flat rate. If the startup is using platforms like SQL or MySQL expect additional charges to be incurred.


AWS for startups is the best way to go even though the price is a few cents more. The fact that AWS has the best performance for the cost is best for a startup to avoid any issues. Also, when a company grows there is no need to switch only jumping from one pricing tier to the next. This will save a company a lot of down time when making changes. Rackspace does provide smaller companies with the same excellent cloud space if they are not planning for large growth or they will use less space than they had originally planned for. If a startup is heavily app based Rackspace is better.

 Posted by at 20:24

  2 Responses to “Amazon Cloud Drive vs Rackspace: A Better Choice For Your Startup?”

  1. For me price is most important so I would go with Rackspace.But I run only a small company so the priorities would perhaps be different for a more fast growing company.

  2. Great post! Our startup is heavily app based so Rackspace is probably the way to go for us.

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