Cloud Computing: Is RackSpace considering exit options?
May 25, 2014
Grazed from TechGig. Author: Editorial Staff.
RackSpace has recently confirmed that they have retained Morgan Stanley in order to begin entertaining acquisition or partnership requests. As Cloud’s Big Three began their race to the bottom in regards to pricing, it left many industry analysts wondering what would happen to RackSpace once the dust settled.
RackSpace has become an important player in the cloud market. Although the company is a publically traded stock, it seems as if RackSpace just doesn’t have the brand name recognition or the capital to keep up with movers and shakers in the cloud industry. RackSpace has invested $1 billion in infrastructure since 2005. Recently, it was reported that RackSpace had been bleeding clients due to the slashing of cloud prices from vendors such as AWS, Google and Microsoft. While RackSpace’s commitment to cloud and their total investment within the industry is nothing to scoff at, it seems as if the large technology players are exponentially outspending RackSpace…
While the sky may be falling inside of RackSpace’s corporate headquarters, other large tech players who do not have a cloud arm may rush to buy the “Premium” cloud provider. CenturyLink, who is known for making billion dollar acquisitions for its cloud endeavors, could be the premier candidate for buying out RackSpace. AT&T could also be another good fit for RackSpace…
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