Rackspace acquires Datapipe as it looks to enhance the managed services business

Rackspace now announced a goal to acquire Datapipe, one of a largest competitors in a managed open and private cloud services business. Rackspace expects a acquisition, that is a largest one yet, to tighten in a subsequent quarter.

The dual secretly hold companies did not divulge a financial sum of a transaction, though Datapipe has lifted aver $310 million in equity appropriation given a launch in 1998 and this understanding certainly didn’t come cheap. Datapipe’s infancy owner, Abry Partners, will turn an equity financier in Rackspace and a total association will have over 6700 employees and do some-more than $2.4 billion in annual revenue.

“The reason we’re shopping them is that we wish to extend a caring in multi-cloud services,” Rackspace arch devise officer Matt Bradley told me. “It’s a pointer and vigilance that we’re going for it.” Bradley expects that a total association will make Rackspace a largest private cloud actor and a largest managed hosting service. He also remarkable that a fact that Rackspace is now a private association again, with a singular owner, authorised it to go for this deal. “This would have been really tough to get finished underneath a aged structure,” he noted.

While Datapipe has been intensely successful in a enterprise and with supervision customers, Rackspace has traditionally focused some-more on a mid-market segment. Indeed, Bradley argues that a dual companies didn’t typically contest on each understanding and he stressed that even their product portfolios are utterly different, too. He total that while Rackspace could have gained identical technical capabilities by creation a series of smaller acquisitions, that routine would have taken most longer and wouldn’t indispensably have given Rackspace entrance to a kind of business that Datapipe now works with and Bradley argues that would’ve taken during slightest dual years — if not longer.

Those business embody a vast series of vast public-sector companies, though also a U.S. departments of defense, appetite and justice, in further to a U.K.’s cupboard office, method of probity and dialect of transportation.

Once a merger closes, Rackspace will also get new information centers and offices in markets where it now doesn’t have most of a presence, including a West Coast (something a business have prolonged asked for), Brazil, China and Russia. In China, Datapipe also now offers managed services on a fast-growing Alibaba Cloud and that’s certainly a marketplace Rackspace wants to play in, too. Rackspace will also get entrance to Datapipe’s colocation services — a marketplace it hasn’t traditionally played in — and a company’s veteran services businesses.

Bradley remarkable that Rackspace can also move new capabilities to stream Datapipe users, including a services for Azure Stack and VMware Cloud on AWS, as good as a managed services on a Google Cloud Platform.

Because a dual companies still have to wait for regulatory approval, some of a sum of what a total association will demeanour like sojourn unclear. The central word is that “Rackspace will rise a extensive formation devise and will take good caring to say and
enhance a well-developed patron outcomes that both companies are famous for.” Rackspace also records that a executive group will stay in place and competence enhance after a merger closes.

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Posted by on Sep 11 2017. Filed under Enterprise. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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