Computer Business Review

Rackspace could go private, claims insider source

by Ben Sullivan| 02 July 2014

IT hosting giant reportedly in talks with private equity firm.

Cloud hoster Rackspace may go private and is currently talking with a private equity firm to help fund the deal.

Tech website TechCrunch, which reported the news, said that an announcement of the deal may come this week.

A source in Rackspace told TechCrunch: "The pressures of being a public company are too much."

Rackspace is a hosting services provider, which provides public cloud, private cloud and managed hosting.

The firm faces hard competition from the likes of Amazon Web Services, Microsoft Azure and Google Cloud, all of which have been persistently cutting prices of their services in recent months.

Rackspace has just come out of a number of acquisition bids, with offers from companies such as IBM and HP. TechCrunch's source claimed that the offer from IBM fell through - something that IBM has yet to confirm.

Rackspace has recently been touting its OpenStack open source platform that puts the firm in a better position to take on competitors such as Amazon. The open source solutions cover a range of IaaS products and enable a situation where fewer engineers and lesser costs are needed, allowing Rackspace to focus more of its budget on support.

Post a comment

Comments may be moderated for spam, obscenities or defamation.

Join our network

742 people like this.
0 people follow this.


Suppliers Directory

  • Neverfail Overview

    The Neverfail Group is dedicated to creating a world where business applications are continuously available. High Availability, Disaster Recovery...

  • Webroot - Security Solutions

    Webroot provides industry leading security solutions for consumers, enterprises and small and medium businesses worldwide.

  • Qualys - IT security risk and compliance solutions

    Qualys is the leading provider of on demand IT security risk and compliance solutions - delivered as a service. Qualys solutions enable...

  • Capscan

    Capscan is a leading supplier of international address management solutions and data integrity services. Capscan has more than 1800 customers...

See more
Privcy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.