Rackspace buys rival cloud service provider Datapipe

Rackspace buys rival cloud service provider Datapipe”

Founded in 2000, the company is based in Jersey City, New Jersey, with 825 employees and 29 data centers in nine countries. It will also bring traditional colocation services, professional services and managed services on the Alibaba Cloud.

"It will have a big impact on our ability to deliver the multi-cloud services that today's customers are demanding", Eazor said in a blog post on Monday.

"Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform and Microsoft Azure".

The companies also have distinct services.

While the value of the deal remains undisclosed, Rackspace claims it is the largest in its history, and it brings "important new capabilities" to the managed cloud provider.

The Datapipe deal comes only months after Rackspace agreed to buy TriCore Solutions, an application management specialist that at the time was its largest acquisition to date. The lineup includes the U.S. Departments of Defense, Energy and Treasury along with several British agencies. In August 2016, Rackspace also launched its global solutions and services division to expand its core cloud business.

Among the new capabilities that Datapipe is expected to deliver to Rackspace are data centres and offices in key markets where Rackspace today has little or no presence today, including the West Coast of the US, Brazil, mainland China, and Russian Federation.

The deal is the largest acquisition Rackspace has ever made "by far", according to CEO Joe Eazor, and brings to it Datapipe's experience with high-profile public sector customers in the USA and United Kingdom, as well as enterprise services, software, and tooling, and colocation services on four continents, to help customers migrate away from corporate data centers.

The agreement is indeed a reversal of fortunes for Rackspace, which had struggled to grow a few years ago and had put itself up for sale in 2014. "The combination of complementary capabilities and resources from both of our companies will create the world's leading provider of multi-cloud managed services".

Rackspace also went private previous year after Apollo Global Management and its investors acquired it for $4.3 billion.

According to industry surveys, the vast majority of companies operate across three or more clouds today, and will do so for years to come. When the transaction closes, Rackspace will have more than 6,500 employees, almost 4,000 more than it had in 2009.

Engates expects some positions to move to San Antonio, but says it is hard to know before the deal closes in the fourth quarter, a required regulatory sign off from the Feds, and an integration has been fully explored. In addition, he writes the Channeling the Cloud column for Redmond Channel Partner.

Jeffrey Schwartz is editor of Redmond magazine and also covers cloud computing for Virtualization Review's Cloud Report.

Like this



12 September 2017
18 killed as IS militants attack police convoy in Egypts Sinai Peninsula
Police said they killed 10 militants in two simultaneous raids on apartments in a densely populated Cairo neighborhood. The officials spoke on condition of anonymity because they were not authorized to speak to the media.

12 September 2017
NC now in Irma's path, state of emergency declared
State troopers had all lanes of Interstate 16 heading westbound out of Savannah on Saturday morning. While we will have an impact here, it will be much less than what south Florida sees.

12 September 2017
Ryan murder case: Nitish calls Khattar, requests Haryana CM for speedy probe
Mr Kumar said that the morale of family members of the boy would be boosted up if Haryana Chief Minister Mr Khattar met them. Jha told TOI from Delhi on phone that JD (U) was ready to provide all kinds of support needed by the grieved family.

12 September 2017
West Virginia tax receipts up 3.9 percent from a year ago
Cumulative collections of almost $32.8 million were $4.5 million above estimate and 13.6 percent below prior year receipts. B&O Tax collections of almost $9.6 million were slightly below estimate and 30.7 percent below prior year receipts.

12 September 2017
Car With Newborn Left Inside Stolen From Fontana Shopping Center
The mother left the vehicle with the child inside unattended for several seconds, keeping it in sight, Sayegh said. The victim's child, who is about seven weeks old, was left inside the vehicle , according to police.

12 September 2017
Dolphins' request to move London game home denied by NFL
That game will now be played in Week 11, leaving the Dolphins and Bucs without a bye week this season. The postponed opener against Tampa Bay was rescheduled for November 19 at Hard Rock Stadium.

12 September 2017
Supreme Court to hear Sahara-SEBI refund dispute today
On August 10, the apex court had rejected Sahara chief's plea to put on hold the auction process of the group's Aamby Valley. In fact, the court allowed the official liquidator to prepare for the scheduled auction of Sahara's Aamby Valley project.

12 September 2017
GM's Cruise self-driving cars are mass-production ready
So far, 50 of the new vehicles have been built, with production expected to ramp up from here on out. It's not clear yet, though, when the company's self-driving software will be commercially ready.

12 September 2017
Minnesota, other states sue Trump administration over DACA decision
Becerra was joined in his suit by the Attorneys General of Maryland, Maine, and Minnesota. The vast majority of DACA beneficiaries are in the school or the workforce.

12 September 2017
Myanmar's treatment of Rohingya is 'textbook ethnic cleansing'
They self-identify as a distinct ethnic group with their own language and culture, and many have lived in Myanmar for generations. The House also urged the International Community to take notice of crimes being committed against humanity.