Rackspace Cloud Loses Momentum, OpenStack Doesn’t Help
May 9, 2013
Grazed from TalkinCloud. Author: Joe Panettierri.
Rackspace, the cloud services provider (CSP) and OpenStack proponent, delivered weaker than expected quarterly earnings results today. The big question: Is the growth of cloud computing slowing down — or is Rackspace being squeezed by Amazon Web Services, Microsoft Windows Azure and other big-name public clouds?
For its quarter ended March 31, Rackspace said revenue grew 20 percent to $362 million and net income grew 18 percent to $27 million. Most businesses craze that type of growth. But Wall Street wanted even more, and Rackspace shares fell more than 15 percent in after-hours trading…
Analysts blamed the earnings miss on February 2013 price cuts involving Rackspace’s cloud and content delivery network (CDN) services. Rackspace has been trying to keep pace with price cuts at Amazon Web Services and Microsoft Windows Azure. Amazon is still widely considered the market leader, and Azure revenues are now above $1 billion annually, Microsoft recently indicated…
Read more from the source @ http://talkincloud.com/cloud-computing-and-cloud-services-stocks/earnings-rackspace-cloud-loses-momentum-openstack-doesnt-h