How Rackspace will stay alive in cloud: Stop competing with Amazon, start partnering

A behind-the-scenes look at how the managed services company went private and its new managed cloud offerings

In August, 2016 months of speculations ended when Rackspace announced that an investment management group would purchase the 18-year-old company. Rumors have been swirling that the company may be acquired, but instead Rackspace took the route that Dell, Riverbed and BMC have and went private.

The company has its roots in managed services, but in 2010 it partnered with NASA to create the OpenStack cloud computing project. Rackspace used the open source code to build an IaaS public cloud competitor to market-leader Amazon Web Services.

taylor rhodes Taylor Rhodes

In recent years, most notably with the ascension of former Chief Customer Officer Taylor Rhodes to CEO in 2014, the company has pivoted toward helping customers manage their next-generation IT needs. That includes no longer competing with AWS, but helping customers use it.

IDG Chief Content Officer John Gallant and Network World Senior Editor Brandon Butler sat down with Rhodes to discuss the company’s transition, its new corporate structure and the state of the cloud market.

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