IBM Cloud Satellite New Pricing

2 min read

New and revised pricing for all new instances on IBM Cloud Satellite and Red Hat OpenShift for IBM Cloud on Satellite.

IBM Cloud Satellite brings managed, cloud-native services to clients running workloads on-premises, at the edge and in third-party clouds and IaaS providers. Given the increased usage of Satellite and improved PaaS efficiencies in managing services across financial and technical industries, we are happy to announce new and revised pricing for IBM Cloud Satellite and Red Hat OpenShift™ for IBM Cloud on Satellite for all new instances, effective 15 November 2022.

New pricing model

Previously, the monthly cost of your Satellite Location grew with the size of the location itself. In other words, the “management fee” associated with Satellite grew with the Location size. With the new model, all Satellite Locations have a fixed management fee of 60 USD per month. This is metered on an hourly basis.

The management fee for managed OpenShift (“Red Hat OpenShift for IBM Cloud”) on Satellite was priced at 0.025 USD per vCPU hour plus any associated OpenShift license costs. With the new model, all managed OpenShift clusters have a fixed management fee of 73 USD per month (i.e., 0.10 USD per hour, per cluster) plus 7.30 USD per worker node vCPU (i.e., 0.01 USD per hour, per vCPU). As before, associated OpenShift licensing fees still apply and are not included in the above.

In summary, the new pricing is as easy as 1-2-3:

  1. IBM Cloud Satellite Locations will cost 60 USD per instance, per month, regardless of the Location size.
  2. Managed OpenShift clusters will cost 73 USD per cluster, instance per month. Worker nodes cost an additional 7.30 USD per vCPU, per month.
  3. Applicable OpenShift license fees still apply and are not part of this pricing action.

These changes in pricing apply only to IBM Cloud Satellite itself and Red Hat OpenShift for IBM Cloud on Satellite

Other cloud native services like IBM Cloud Event Streams, IBM Cloud Databases for Postgres, etc. on Satellite are not affected. Pricing is effective 15 November 2022 and applies to newly created Satellite Locations and managed OpenShift clusters.

A representative example

Let’s say you have a Satellite Location with three managed OpenShift clusters (one each for dev, test and prod, respectively). In this example, each cluster is three nodes of 16 vCPU x 64 GB RAM each.

New pricing (excluding OCP license fee):

For the above Satellite Location, the pricing is now 1330.20 USD

  • IBM Cloud Satellite Location: 60 USD/instance-month
  • Three managed OpenShift clusters: 219 USD/month (3 * $73)
  • Nine worker nodes total (three clusters of three nodes each), 16 vCPU x 64 GB RAM: 1051.20 USD/month (9 * 16 * $7.30)

Monthly cost: 60 + 219 + 1051.20 = 1330.20 USD per month. Again, this does not include any associated OpenShift license fees.

In general, we expect the new pricing model to represent 50% or more savings for Satellite and managed OpenShift on Satellite when compared to our previous model.

Get started

Please note that existing IBM Cloud Satellite Locations and managed OpenShift clusters continue to be charged using the older pricing model. The new pricing applies only to new IBM Cloud Satellite locations and clusters created after 15 November 2022. We encourage all to re-create their existing Locations and clusters to leverage the price decrease.

Learn more about IBM Cloud Satellite.

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