Hybrid cloud provider Rackspace Technology has launched Rackspace OpenStack Business, a new private cloud offering.

This open-source service provides customers with dedicated resources to securely power mission-critical workloads.

Businesses in sectors like finance, healthcare, and government, which are subject to strict privacy regulations such as HIPAA, require enhanced security and control over their data.

Rackspace’s fully managed OpenStack offering helps users safeguard their data and maintain compliance, with the company touting it as being “well-suited” for performance-sensitive applications that require guaranteed system resources, like high-frequency trading (HFT), or AI training.

“This platform is built for customers requiring performance, security, privacy, and control,” said Lance Weaver, chief product and technology officer at Rackspace Private Cloud.

“Delivered as a fully-managed, open source platform, it provides businesses the freedom to modernize on their terms.”

Rivals like Pulsant, Cloudera, and Cato Networks have all launched their own private network infrastructure-type offerings amid a growing demand from businesses for secure, sovereign services. This week alone saw SUSE debut a sovereignty-focused support offering for cloud customers.

Rackspace, meanwhile, markets its private cloud solution by tying it to its existing offerings, with the offering able to work seamlessly with its OpenStack Flex platform. Unveiled back in 2024, OpenStack Flex is a private cloud alternative to hyperscale solutions.

The new OpenStack Business offering expands on Flex, creating an open platform that Rackspace touts as enabling users to “avoid vendor lock-in” while also keeping their workloads secure.

“Together, Rackspace OpenStack Flex and OpenStack Business provide a powerful foundation for building scalable hybrid cloud environments,” said Josh Villarreal, GM for OpenStack at Rackspace.

“This combination helps organizations address key IT challenges, including cost control, data privacy, [and] performance consistency.”

Rackspace’s OpenStack Business unveiling comes after it launched a GPU as a Service (GPUaaS) offering late last year.

The offering, based on its Rackspace Spot platform, uses Nvidia H100s housed in the company’s SJC3 data center located in Silicon Valley, California.

The company effectively ran out of storage space in its London region at the tail end of 2023 amid increasing demand for its services.

Rackspace saw sales bookings for its services rise 14 percent in fiscal year 2024, with the final quarter. Demand for its services, however, didn’t stop Rackspace from reporting a revenue drop of seven percent year-over-year for 2024, with $2,737 million compared to $2,957 million in 2023.