Rackspace has been one of the most successful companies that have moved from a traditional web-hosting model to being a cloud vendor. However, despite this they have not reached their expected level of success. Rackspace’s growth has increased, but has not been what it should be based on the amount of money in the cloud industry.

 

 

Previously, they have been considered number two (next to Amazon) for cloud services, but other larger companies have swooped in and taken this title away.

 

Last year, Rackspace took itself out of the cloud service provider race to focus on being a managed cloud vendor. This move was based on the need for help when transitioning to using a cloud service, and Rackspace wanted to provide that help.

 

Their CEO Taylor Rhodes has hinted that supporting many companies’ clouds are in their future. They already work with Office 365 and Microsoft SharePoint. This move is similar to the one Dell made when they stopped offering their own cloud and focused on servicing other clouds. There is a significant amount of money to be made by supporting other cloud services.

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