He told ComputerworldUK: "Something that hurt us in the market before was bundling some degree of support with every cloud customer. We have been criticised for being more expensive than Amazon or Google. We were, but for a reason, which is that we bundled in a degree of managed services, phone support and so on.
"We have now changed the way we bill for these services. Traditionally we bundled service and support into our offering. We were more expensive than competitors but that's because we included stuff they didn't like being able to call on the phone. You aren't able to do that with Amazon or Google unless buy a platinum support package.
"We have always picked up the phone for every customer no matter how big or small traditionally. But we were at a disadvantage from a price perspective as we didn't make that support clear to people."
The company also launched 'developer+' today, a new programme for developers which allows them to try out Rackspace's cloud services for a year for free while they work on building applications.
Engates said: "The 'developer+' programme was developed by our developer relations team here. It recognises an interesting fact, which is that if you launch managed services on cloud, developers will say 'I'm just trying it out, I don't want to pay for it until I need it'.
"So we've made the programme no charge for 12 months, so developers, be they individuals, within start-ups in bigger companies, can get free space on our platform for 12 months. Then they should be ready to come into one of our service levels."
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