Login | Register   
LinkedIn
Google+
Twitter
RSS Feed
Download our iPhone app
TODAY'S HEADLINES  |   ARTICLE ARCHIVE  |   FORUMS  |   TIP BANK
Browse DevX
Sign up for e-mail newsletters from DevX


advertisement
 

Rackspace Goes Private

Apollo Global Management has purchased the cloud computing provider.


advertisement

Struggling cloud computing provider Rackspace has been purchased by Apollo Global Management LLC, a private equity firm. The deal, worth approximately $4.3 billion, will take the company private to give it time to transition to a services business. “This transaction will provide Rackspace with more flexibility to manage the business for long-term growth and enhance our product offerings,” said Graham Weston, chairman and co-founder of Rackspace.

Recently, Rackspace's traditional cloud computing business had been declining. "Rackspace’s public cloud services have been losing market share to the hyperscale providers," said Joshua Yatskowitz, a Bloomberg Intelligence analyst. "The company has said current customers haven’t been churning, but it is seeing a smaller portion of new workloads, which have increasingly gone to the hyperscale players." Rackspace adopted a new business model, helping enterprises shift their data center operations to the AWS and Azure cloud computing services, but so far that services business has not compensated for other declines.

View article



   
Comment and Contribute

 

 

 

 

 


(Maximum characters: 1200). You have 1200 characters left.

 

 

Sitemap
Thanks for your registration, follow us on our social networks to keep up-to-date