Rackspace is doing okay. Okay, at least in the growth of their public cloud technology, this, according to Barb Darrow.
“Rackspace had a pretty good quarter when it came to cloud growth, which was fueled by its new OpenStack-based cloud business. The San Antonio, Texas company said revenue from its dedicated cloud business grew 15 percent to $265.6 million from $224.8 million for the year while revenue from its smaller but closely-watched public cloud business rose 49 percent to $87.3 million from $58.5 million. Rackspace offers both public and private cloud implementations of OpenStack.”
The issue with guys like Rackspace is that they have a traditional business, and the new cloud computing business. One was used to fund the other, and typically you do that because the traditional business will eventually decrease. That’s the story here.
Most of those doing cloud computing, including Amazon, Microsoft, HP, IBM, etc., are large companies where it’s difficult to determine where the traditional technology stops and cloud computing begins. Startups are pure play cloud, but typically are not publically traded.
Rackspace is a cloud “tweener,” neither a massive publically traded company that does cloud, or a startup. I’m thinking about AWS or any IaaS cloud provider under $10 mil in revenue. Thus, they have the best and the worst of both worlds.