Hosting firm Rackspace has revealed that it might be looking for an exit strategy from the increasingly competitive cloud market, by putting itself up for acquisition or entering into partnership with other companies.
With the giants of the internet services sector such as Amazon, Google and Microsoft engaged in a price war over cloud servers, Rackspace has also faced competition in Openstack solutions from Red Hat, Canonical and most recently HP Helion, and the firm is apparently worried about its position in the hosting market.
The company has confirmed that it is looking at strategic partnerships as part of its future direction. In a statement, the company said, “In recent months, Rackspace has been approached by multiple parties who have expressed interest in a strategic relationship with Rackspace, ranging from partnership to acquisition.”
“Our board decided to hire Morgan Stanley to evaluate the inbound strategic proposals, and to explore any other alternatives which could advance Rackspace’s long-term strategy.”
This apparently signals that Rackspace could be putting itself up for acquisition. However, it warned, “No decision has been made and there can be no assurance that the board’s review process will result in any partnership or transaction being entered into or consummated.
“The company has not set a timetable for completion of this process and does not intend to discuss or disclose further developments with respect to this process unless and until the Board approves a specific partnership or transaction.”
At the moment we can only speculate as to which companies might court such a union, but the significant Rackspace infrastructure around the world, including a new 15-acre data centre in Crawley, West Sussex that construction starred on in February, is bound to be an attractive proposition for any company looking to expand its cloud footprint at a stroke, especially if they are already comitted to the OpenStack platform.
16 May 2014 | 3:21 pm – Source: v3.co.uk