Rackspace Cloud Loses Momentum, OpenStack Doesn’t Help
Grazed from TalkinCloud. Author: Joe Panettierri.
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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…

