Rackspace Grows Managed Cloud Business

Grazed from Datamation.  Author: Sean Michael Kerner.

The cloud business has often seemed like a race to the bottom in terms of pricing, with Amazon and Google constantly aiming to make cloud computing resources cheaper. It’s a race that Rackspace doesn’t want to win — instead Rackspace is aiming to find a niche in the managed cloud services market. It’s a market that is showing growth.

Rackspace reported its second quarter fiscal 204 earnings on August 11, with Net revenue coming in at $441 million for a 17 percent year-over-year gain. Looking forward, Rackspace provided third quarter guidance for revenue to be in the range of $454 million to $461 million…

Rackspace’s earnings call comes at a particularly turbulent time for the company. The company had previously announced that it had hired Morgan Stanley on May 15 to evaluate strategic proposals about the future of the company.  "At this point in time, the evaluation is ongoing," Graham Weston, Chairman of the Board and Chief Executive Officer of Rackspace said during his company’s earnings call. "The Board has not set a timetable for completion of this process and there can be no assurance that any transaction or partnership arrangement will be reached."…

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