Cloud giveth and cloud taketh away: Rackspace edition
Hosting firm Rackspace has been a well-known name in the cloud industry for a long time, but lately the company has been struggling to keep up in the core cloud computing competition.
Instead, the firm has concentrated on becoming the “#1 managed cloud company,” mixing its own hosting services and cloud offerings while also cutting deals to provide “fanatical” service and support to users of market leaders like Amazon Web Services and Microsoft Azure.
It seems that strategy wasn’t enough, at least not by itself.
Even as AWS, Azure and Google Cloud Platform have been posting quarter after quarter of amazing growth that help cement their economies of scale, Rackspace’s stock stumbled, (the company had lost half of its market value before talk of a possible sale) which constrained its ability to find a better market position.
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