Rackspace Among Cloud Top 500

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Rackspace Strengths, Domain Expertise, and Key Differentiators

The Multicloud Services segment includes public and private cloud managed services offerings, as well as professional services related to designing and building multicloud solutions and cloud-native applications. It offers an integrated suite of managed services offerings across our private cloud, the leading public clouds and colocation. The managed cloud services help customers determine, manage and optimize the right infrastructure, platforms and services on which to deploy their applications to achieve the best performance, agility, security and cost efficiency.

Rackspace Recent Developments

In April 2021, Rackspace launched Rackspace Elastic Engineering for Security. The new offering transforms cloud security operations by offering users access to a team of experts who work as an extension of internal staff to address complex cybersecurity and compliance challenges.

Rackspace is primarily a web hosting and managed service provider offering OpenStack-based public cloud services, but it has shifted its strategy to being a managed service provider across a range of public clouds, rather than focusing on its own native cloud storage services. In regards to storage, Rackspace offers Cloud Files and Cloud Block Storage. The vendor’s public cloud services are offered in data centers in the central and eastern U.S., the U.K., Australia, and Hong Kong.

Rackspace Mergers and Acquisitions (M&A) Activities

In 2017, Rackspace acquired TriCore Solutions, a provider in the management of enterprise applications, including Enterprise Resource Planning (ERP) solutions from Oracle and SAP. It allows Rackspace to provide expertise and support for the mission-critical enterprise applications that companies use to manage core functions such as manufacturing, logistics, procurement, supply chain management, customer service, HR and financial operations. This acquisition is the largest in Rackspace history.

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

Rackspace Revenues, $M:

Type/Year20202021YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
Enterprise Applications Revenues, $M Subscribe Subscribe Subscribe
Cloud Applications Revenues, $M Subscribe Subscribe Subscribe

* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

Rackspace Revenue Breakdown By Type, $M:

TypeLicenseProf. ServicesHardwareSupport & MaintenanceSaaSPaaSIaaSOther (Non Enterprise Application Revenues)Total
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe 100%
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe

Rackspace Revenues By Region, $M

Region% of Total Revenues2021 Total Revenues, $M2021 Enterprise Applications Revenues, $M2021 Cloud Applications Revenues, $M
Americas Subscribe Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe Subscribe

Rackspace Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

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

List of Verified Rackspace Customers

No. of Rackspace Customers: 117000

No. of Rackspace Enterprise Applications Customers: x

No. of Rackspace Cloud Customers: x

No. of Rackspace Cloud Subscribers: x

As of December 31, 2020, Rackspace's customer base included over 1,000 enterprises, over 1,000 mid-market businesses and over 114,000 SMBs, across 120 countries, including more than half of the Fortune 100.

Some of Rackspace's customers are: 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 many more.

Rackspace Market Opportunities, M&A and Geo Expansions

New sales bookings in 2021 accelerated, with 61% year-over-year, driven by the tectonic shift to multicloud. Today, 92 percent of organizations have a multi-cloud strategy in place or underway, and 82% of large enterprises have adopted a hybrid cloud infrastructure. The adoption rates of multi-cloud and hybrid cloud strategies are expected to continue rising. This fosters innovation by aligning workloads with the cloud service that is best for the use case. Other benefits include failover capabilities for better redundancy and disaster recovery, avoiding vendor lock-in, and pay-as-you-go models.

In 2019 Rackspace acquired Onica, an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. This acquisition brings Onica’s innovative professional services capabilities, including strategic advisory, architecture and engineering and application development to the Rackspace portfolio.

Rackspace Risks and Challenges

After Rackspace Hosting withdrew from public trading on the New York Stock Exchange in 2016, the company started morphing from offering primarily colocation and managed hosting services into a full-service technology provider partnering with its former hyper-scale competitors.

After going public again in August 2020, Rackspace applied around 85 percent of the cash raised in its IPO to pay down debt. As cloud adoption soared, it is becoming increasingly apparent Rackspace would struggle competing with the likes of Amazon, Microsoft and Google in the public cloud market.

Rackspace Ecosystem, Partners, Resellers and SI

In November 2021, Rackspace launched Rackspace Elastic Engineering for VMware. The offering delivers an industry differentiating engineering and support model that provides premium value to assist companies in their larger strategic goals of cloud transformation by getting the most out of orchestration, automation, and general tooling for VMware multi-cloud computing infrastructure.

Rackspace's ecosystem consists of over 3,000 partners serves as an extension of the direct sales force.

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).

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