Rackspace Continues Acquisition Strategy, Buying Competitor Datapipe

Rackspace acquires Datapipe as it looks to expand its managed services business

Rackspace acquires Datapipe as it looks to expand its managed services business

The deal will make Rackspace the leading provider in many of its business areas, including managed public cloud - on AWS, Google Cloud and Microsoft's Azure platforms - which the company has been focusing on for several years. Rackspace said this is its largest acquisition to date, although the private company did not disclose the terms of the deal.

It also boosts Rackspace data center presence on the U.S. West Coast, and in Brazil, mainland China, and Russian Federation, all large markets where the company now has little or no presence.

The world's leading provider - now by a wider margin - of the managed hosting and private cloud solutions that more companies are using as they move out of their corporate data centers, in search of better performance, agility, and cost efficiency.

"With the acquisition of Datapipe, we're very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe". After failing to forge an acceptable deal, Rackspace chose to go it alone, and added public cloud services from AWS, Google and Microsoft to its managed services portfolio. It also brings traditional colocation services across four continents to serve customers moving applications out of their corporate data centers. "The combination of complementary capabilities and resources from both of our companies will create the world's leading provider of multi-cloud managed services", stated Robb Allen, founder and CEO of Datapipe. It will have over 6,700 employees, and $2.4 billion in annual revenue, TechCrunch reports.

The company provides IT services to a range of vertical industries, which include the healthcare, financial sectors, pharmaceutical, manufacturing and distribution, publishing, communication, business services, public sector, government, and technology industry.

Both Rackspace and Datapipe have been positioned as Leaders in the Gartner Magic Quadrant assessments of providers in the industry, and have also both been represented in rankings by Forrester and other analyst firms.

Rackspace says the acquisition signals the creation of the world's largest multi-cloud managed service provider. Other enterprise customers include Johnson & Johnson, McDonalds, and Rubbermaid.

Both companies are privately held, with formerly public Rackspace having been acquired and taken private by Apollo Global Management previous year, and details of the transaction weren't announced. Rackspace, which was a key creator of OpenStack before contributing it to the open source community, offers managed OpenStack services. The official word is that "Rackspace will develop a comprehensive integration plan and will take great care to maintain and enhance the exceptional customer outcomes that both companies are known for".

"I think what will happen is we're going to go through a talent review process and there will certainly be leaders at Datapipe who become leaders at Rackspace, that is our expectation", he said. Rackspace also offers VMware-hosted services and though its Microsoft partnership managed Exchange, SharePoint and Windows Server hosting.

About DatapipeA next generation MSP, Datapipe is recognized as the pioneer of managed services for public cloud platforms. Datapipe has 825 employees who work at 11 offices in the U.S., U.K., and Asia.

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