Cloud Computing: Cisco Not Interested in Buying Rackspace
May 23, 2014
Grazed from eWeek. Author: Jeffrey Burt.
At Cisco Live 2014, CEO John Chambers says that the cloud computing services vendor doesn’t fit in with his company’s plans. Cisco Systems has never been shy about buying a company if executives think the deal will add to the vendor’s wide range of ambitions, from security and cloud to the data center and Internet of everything. However, despite speculation in the industry, cloud provider Rackspace isn’t going to be one of those acquisitions.
Rackspace has been a pioneer in the cloud computing market and a key developer of the OpenStack technology, and it competes with such large and well-financed companies as Amazon Web Services and Google. However, as the competition has increased, Rackspace has seen its stock price fall by almost half over the past year, and in a filing with the Securities and Exchange Commission (SEC) earlier this month, Rackspace officials said the company has hired banker Morgan Stanley to help them explore possible partnerships or sales…
"In recent months, Rackspace has been approached by multiple parties who have expressed interest in exploring a strategic relationship with Rackspace, ranging from partnership to acquisition," they said in the SEC document.
The company’s board of directors has made no decisions or set a timetable for the making one, they said…
See more at: http://www.eweek.com/cloud/cisco-not-interested-in-buying-rackspace.html#sthash.2hQHr2aD.dpuf
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