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Rackspace Bargains Space in Amazon’s IaaS Services


Rackspace and AWS could become financially crony to offer their IaaS Services.

According to the first learning, Rackspace Hosting told analysts on a conference call that it could settle a deal with Amazon Web Services (AWS) and is “building an offering for customers who want specialized expertise and Fanatical Support on the AWS cloud,” reports.

Rackspace was seen by some as an early competitor to AWS, but the company fell behind in the infrastructure as a service space considerably as companies such as Microsoft and Google try to keep pace with Amazon in the so-called hyper-scale public cloud. Last year, Rackspace considered a potential sale before doubling down on its strategy around managed cloud services.

Still, Rackspace has signed similar deals with former competitors, and analysts say the move isn’t unprecedented among managed hosting companies.

“This is simply the next piece of the pie,” said reports. “I would venture that 100% of Rackspace’s enterprise customers also use AWS — they use each provider for different reasons.”

Rackspace already offers managed versions of Microsoft Office 365, Microsoft Cloud Platform, VMware vCloud and Google Apps for Work.  In the company’s first quarter earnings call, company officials hinted at more deals and in July introduced a managed service most akin to AWS with Microsoft Azure.

That question remains open until Rackspace and AWS provide further details.

Amazon repulsive to comment on the matter.


Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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