Rackspace Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS and CLOUD TOP 500 Market Report

Rackspace Strengths, Domain Expertise, and Key Differentiators

The Multicloud Services segment comprises managed services for both public and private clouds, coupled with professional services for designing and constructing multicloud solutions and cloud-native applications. This integrated suite spans their private cloud, major public clouds, and colocation facilities. Their managed cloud services assist customers in strategically determining, managing, and optimizing infrastructure, platforms, and services for deploying applications, ensuring optimal performance, agility, security, and cost efficiency.

Rackspace Recent Developments

In July 2023, Rackspace unveiled FAIR Learn as a pivotal component of the comprehensive Foundry for Generative AI by Rackspace (FAIR). This pioneering AI literacy program is meticulously crafted to enhance the cognitive grasp of Rackspace personnel on fundamental AI principles, potential applications, and inherent limitations. The overarching objective is to empower employees to judiciously leverage AI capabilities in a creative, responsible, and sustainable manner. Rackspace Technology anticipates that this program will yield substantive benefits for customers, fostering a proficient integration of AI into the fabric of the company's operational framework.

In January 2023, Rackspace introduced the Rackspace Technology Modern Operations, a novel managed service offering tailored for the public cloud. This innovative service is poised to furnish customers utilizing AWS, Azure, and GCP with a comprehensive 24x7 unified support model, thereby allowing them to concentrate on core business functions and expedite their transition through the cloud. Modern Operations is designed to assist customers in navigating intricate cloud environments, facilitating an accelerated journey to the cloud, and affording the flexibility to innovate and transform in alignment with core business objectives.

In April 2021, Rackspace introduced Rackspace Elastic Engineering for Security, a transformative initiative that revolutionizes cloud security operations. This novel offering provides users with access to a dedicated team of experts who seamlessly integrate with internal staff, offering specialized support in addressing intricate cybersecurity and compliance challenges.

Rackspace, initially recognized as a web hosting and managed service provider offering OpenStack-based public cloud services, has strategically pivoted toward a broader managed service provider role, extending its services across various public clouds. This shift signifies a departure from an exclusive focus on proprietary cloud storage solutions. In the realm of storage, Rackspace presents Cloud Files and Cloud Block Storage. The vendor's public cloud services are strategically located in data centers spanning the central and eastern U.S., the U.K., Australia, and Hong Kong.

Rackspace Mergers and Acquisitions (M&A) Activities

In the year 2017, Rackspace executed the acquisition of TriCore Solutions, a distinguished enterprise application management provider specializing in solutions for Enterprise Resource Planning (ERP) systems from Oracle and SAP. This strategic move empowers Rackspace to deliver specialized expertise and support for mission-critical enterprise applications, pivotal for companies managing essential functions including manufacturing, logistics, procurement, supply chain management, customer service, human resources, and financial operations. Notably, this acquisition stands as the most substantial in the history of Rackspace.

Rackspace Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Rackspace applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Rackspace and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Rackspace Cloud customers.

Rackspace Key Enterprise and Cloud Applications

Rackspace Cloud

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Rackspace Direct vs Indirect sales

Rackspace Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Rackspace Customers

No. of Rackspace Customers: 140000

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Rackspace's extensive clientele encompasses over 1,000 enterprises, in addition to a comparable number of mid-market businesses and over 114,000 small and medium-sized enterprises (SMBs) spanning 120 countries. Notably, Rackspace boasts a client portfolio that includes more than half of the Fortune 100. Among the clients are prominent entities such as Banwire, British Heart Foundation, Envizi, Dominos, Charles River, Feeding America, Invotra, HK Express, Equis National Kidney Registry, LiveNation, Payless, GoCompare, Oxfam, Synchronoss, ReviewPro, Metro Bank, Teva, Under Armour, Trading Point, Wyndham, and a myriad of other discerning organizations.

Rackspace Market Opportunities, M&A and Geo Expansions

Expanding the private cloud business through innovative solutions like Rackspace Services for VMware and Rackspace Data Freedom positions Rackspace strategically to capitalize on significant market opportunities, fostering growth and enhancing market share.

In 2021, new sales bookings surged by 61% year-over-year, propelled by the significant shift towards multicloud solutions. Around 92% of organizations have initiated or implemented a multi-cloud strategy, with 82% of large enterprises embracing hybrid cloud infrastructure. Anticipated upward trends in multi-cloud and hybrid cloud adoption are expected to persist, facilitating innovation through tailored workload alignment with optimal cloud services. Additional benefits encompass enhanced redundancy and disaster recovery through failover capabilities, avoidance of vendor lock-in, and the flexibility of pay-as-you-go models.

In 2019, Rackspace strategically acquired Onica, recognized as an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. This acquisition integrates Onica's pioneering professional services capabilities, encompassing strategic advisory, architecture and engineering, and application development, into the comprehensive Rackspace portfolio.

Rackspace Risks and Challenges

In January, Rackspace announced the appointment of Brian Lillie as the President of the Private Cloud business unit. Lillie's addition to the executive management team marks the final step in the company's comprehensive realignment, aligning with its newly implemented two-business unit operating model. This strategic move coincides with Rackspace's initiation of the year 2023, characterized by a transformative strategy and operating model aimed at driving organizational growth and evolution.

Upon its return to public trading in August 2020, Rackspace judiciously allocated approximately 85 percent of the funds raised in its IPO to debt reduction. As the trajectory of cloud adoption surged, it became evident that competing with industry giants such as Amazon, Microsoft, and Google in the public cloud market posed considerable challenges for Rackspace.

Following Rackspace Hosting's departure from public trading on the New York Stock Exchange in 2016, the company initiated a transformation from its initial focus on colocation and managed hosting services to evolve into a comprehensive technology provider. This strategic shift involved establishing partnerships with former hyper-scale competitors.

Rackspace Ecosystem, Partners, Resellers and SI

In the year 2023, Rackspace extended its strategic partnerships, fostering collaborations with prominent entities including Braze, High Tech Campus Eindhoven (HTCE), Connexion Telematics, and Google Cloud. This expansion signifies Rackspace's commitment to forging meaningful alliances with key industry players, further enhancing its ecosystem and positioning itself for continued growth and innovation.

Rackspace's expansive ecosystem, comprised of over 3,000 partners, operates as a seamless extension of the direct sales force, further fortifying the company's collaborative approach to meeting the evolving needs of its clientele.

In November 2021, Rackspace introduced Rackspace Elastic Engineering for VMware, a groundbreaking offering that introduces a distinctive engineering and support model. This model is designed to deliver premium value, facilitating companies in their overarching strategic objectives related to cloud transformation. It specifically focuses on optimizing orchestration, automation, and general tooling for VMware multi-cloud computing infrastructure.

Rackspace Cloud Infrastructure Insights

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• Rackspace Public Cloud and Infrastructure (IaaS)
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• Rackspace Private Cloud and Data Centers

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: