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Rackspace goes private - Sold to Apollo Global for $4.3 Billion
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Rackspace goes private - Sold to Apollo Global for $4.3 Billion

Haven't seen this posted here yet. It looks like Rackspace is going private, after accepting a $4.3 billion offer from Apollo Global.

Source: https://techcrunch.com/2016/08/26/rackspace-to-go-private-after-4-3b-acquisition-by-private-equity-firm-apollo/

Thoughts?

Thanked by 1raindog308

Comments

  • Yeah, fuck Rackspace.

    Thanked by 1yomero
  • jbilohjbiloh Administrator, Veteran

    Rackspace will need to employ new, long term strategies to evolve the business because keeping up with Google, AWS and Microsoft wasn't going to pan out. It's easier to do that as a private company where everything isn't focused on just the next quarter.

  • I remember back when they were a major name and they just fell behind

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    @doughmanes said:
    I remember back when they were a major name and they just fell behind

    How much could they have fallen behind to have a $4 Billion dollar price tag?

    Rackspace did a move a few years back where they wanted to try to draw the average consumer instead of just dominating the high end enterprise market.

    Francisco

  • raindog308raindog308 Administrator, Veteran

    jbiloh said: Rackspace will need to employ new, long term strategies to evolve the business because keeping up with Google, AWS and Microsoft wasn't going to pan out. It's easier to do that as a private company where everything isn't focused on just the next quarter.

    They simply don't have the scale. Markets are never kind when you have three established, big players and you're trying to come in as a fourth.

    Heck, markets aren't kind when there's two established player and you're trying to come in as a third...

    They will make the usual noises about differentiating by target a niche, etc., but when you're in the billion-dollar-range, there are no niches, at least not in commodity hosting services.

    Thanked by 2doughmanes mailcheap
  • doughmanes said: I remember back when they were a major name and they just fell behind

    Yea, no. Just because you don't see their IPs being used by major things does not mean the DCs are empty. THey are all nicely filled and the Asia and EU expansions seemingly did pan out also.

  • If recent discussions are anything to go on, Rackspace are more interested in providing management and professional services to support AWS/Azure than they are selling hosting; their problem (IMO) is their 'opinionated' stance, which means they'll only support the things that match their model and don't offer much flexibility.

  • William said: Just because you don't see their IPs being used by major things does not mean the DCs are empty.

    Never stated that. It's just they fell behind in name recognition when at one time they were in the top 5 list.

  • Anybody remember ServerBeach?

  • It was expected. I wouldn't be surprised if LiquidWeb get sold too.

    Thanked by 1doughmanes
  • They announce any significant change in services yet?

  • Hxxx said: I wouldn't be surprised if LiquidWeb get sold too.

    They already have.

  • ktkt Member, Host Rep

    QuadraNet_Adam said: They already have.

    They just sold their shared hosting clients too:
    http://deluxehosting.com/faq.html

  • MikePTMikePT Moderator, Patron Provider, Veteran
    edited September 2016

    It's not only their Cloud/VPS Offering.

    There's also Email, and Email + Exchange and many other services they provide.

    When they were starting their Cloud project I signed up as a beta-tester for quite a few months, working along with Ameen (IIRC), they were great and they would fix/implement new stuff within a few hours.
    Their support is also excellent. They are not stupid at all, nor people here have an idea about their client-base... Which is pretty huge still.

    They recently started advertising AWS/Azure Cloud Management, where they have full teams dedicated to big companies and their infrastructure.
    They also have a bunch of clients for Dedicated Servers, all of those expensive as hell. It's totally worth for the support and stability you get.

    I, personally, have been using their email service for years and haven't had a single issue with it. I even have some of my enterprise clients utilizing their email service because, as mentioned, is top notch.

    Just my 2 cents.

  • He's not going to address you or anyone else's issues here, he's clearly ignored that post for a reason..

    All I can say is shame on them for making that move (it affected me) I was given a pro-rata refund (finally).

    I really hope that their new plan succeeds the service and support were quite good for the price I was paying...

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