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by abakker 3587 days ago
Rackspace's problem is this: they are not really a hosting business. They are a Managed services business. They USED to be a hosting business, but it turned out that their real value add was in running clouds for companies that couldn't do it themselves. My guess is that the real reason they sought this is that the hosting business is not going to grow, and they don't want to invest in it. Instead, they are going to transition into becoming a managed services provider for Openstack private clouds (customer premises or equinix), Azure and AzureStack, and AWS.

Many enterprises are not making the transition to Cloud cleanly, and Rackspace is positioning themselves as the premier services provider to deploy, manage, and monitor cloud usage for many organizations.

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