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Rackspace is looking towards Openstack cloud exit

Struggling to challenge Red Hat and HP
Fri May 16 2014, 10:53
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HOSTED SERVER VENDOR Rackspace has revealed that it might be looking for an exit strategy to get out of the cloud market.

With the giants of the internet services sector such as Amazon, Google and Microsoft muscling in with some serious firepower, along with direct competition from Openstack solutions from Red Hat, Canonical and most recently HP Helion, Rackspace has found it increasingly hard to maintain its niche.

The company has confirmed that it is looking at strategic partnerships as part of its future direction. In a statement, the company said, "In recent months, Rackspace has been approached by multiple parties who have expressed interest in a strategic relationship with Rackspace, ranging from partnership to acquisition."

"Our board decided to hire Morgan Stanley to evaluate the inbound strategic proposals, and to explore any other alternatives which could advance Rackspace's long-term strategy."

This apparently signals that Rackspace intends not to exist in its present form much longer. However, it warned, "No decision has been made and there can be no assurance that the Board's review process will result in any partnership or transaction being entered into or consummated.

"The company has not set a timetable for completion of this process and does not intend to discuss or disclose further developments with respect to this process unless and until the Board approves a specific partnership or transaction."

At the moment we can only speculate as to which companies might court such a union, but the significant Rackspace infrastructure around the world, including a new 15-acre data centre in Crawley, West Sussex that broke ground in February, is bound to be an attractive proposition for any company looking to expand its cloud footprint at a stroke, especially if they're already of the Openstack persuasion. µ


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