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Earlier quoted context omitted.
what was the use case when they wanted you to have a load balancer for a single server..?
I was told it was to avoid changing my DNS when I spun up a new server. With the load balancer being $50/month; that was the pitch that put me off Rackspace.
Over the past six months I've been battling with poor service from Rackspace, with hosts mysteriously dying and their agents are trying to upsell me (load balancers for a single server, for example). We're migrating away but this doesn't surprise me.
what was the use case when they wanted you to have a load balancer for a single server..?
I guess it was only a matter of time before they got bought out. It's tough to compete against one of Google, Amazon or Microsoft, competing against all 3 at the same time in an area that all three consider to be core to their future must just be cut throat! It's never great for a companies employee's to be taken over by a private equity firm, if you actually find someone whose had a good experience then please let m…
I worked at OnSemi during the period that TPG was a significant investor. Initially they did enforce some fairly strict standards about how money could be spent. And there was a lot of BS where the quarterly numbers were almost enough to beat the street and so employees were forced to take accrued vacation. However, at the end of the holding period, TPG moved from a "lipstick on the pig" strategy to one of making OnSemi a better company and loosened the purse strings.
Over the past six months I've been battling with poor service from Rackspace, with hosts mysteriously dying and their agents are trying to upsell me (load balancers for a single server, for example). We're migrating away but this doesn't surprise me.
Earlier quoted context omitted.
RAX's strategy has shifted to "different segments" directly as a result of competition from AWS [0]. Now, AMZN has considerable supplier power over RAX: "The deal would have been unthinkable just two years ago, when Rackspace and AWS were fierce rivals. But in early 2014, Rackspace, facing ever slimmer margins amid a cloud-computing price war, withdrew from head-to-head competition with Amazon. Since then, it has foc…
Yes but even prior to this, Rackspace had been a managed cloud provider, meaning they offer services on top of the infrastructure. This is different than AWS.
RAX's going private to shift its P&S mix and turn things around.
edit: I'll also point to jsode's great comment above.
[0] https://support.rackspace.com/how-to/mapping-of-amazon-web-s...
[1] http://www.networkworld.com/article/2461361/iaas/rackspace-b...
I like to look at comparisons like this: That is about 1 Yahoo in 2016 Or about 3 youTubes in 2006 Or 1.5 Lucasfilms in 2012 Or 0.2 Whatsapps in 2014 EDIT: Whatsapps number corrected, thanks.
1 Marvel. Marvel is always my measurement for these acquisitions. It's always fun to compare acquisitions to a cultural icon with +50 years of history. Moreso when the company is a mobile gaming company, social media site, or other "time-waster"
Has there been any analysis on the upswing in acquisitions of cloud computing and storage companies? First EMC gets bought by Dell, now Rackspace is getting picked up. Is it just in response to growth on the part of Google and Amazon?
Apollo is a private equity firm, so they are most likely acquiring Rackspace because they see fat they can trim (read: laying people off, outsourcing labor, tax optimization) off a decently competitive company that they can possibly take public or sell in 5-10 years. It's not so much about competing with Amazon, Google, etc. or advancing the state of the technology as much as making a bet that the brand is currently…
Investment firms like hosting companies for two reasons:
1) They give predictable revenue, which is a great thing. Even if the profit rate isn't amazing, the revenue gives a lot of cash-flow.
2) They (often) own large infrastructure asserts (data centers), which can be depreciated and used as a tax write-off.
Not saying that they won't want to take costs out of the business too, but the motivations for a purchase like this aren't as simple as one might think.
Is it time to move forward?? Will my hosting be affected??
> $32 per-share-offer represents a premium of 6 percent to Rackspace's Thursday closing price. Quite a fall from almost $80 in 2013. I was a satisfied Rackspace customer back around 2001 when I had a web hosting business, but it was truly a premium service - very expensive compared to competitors. We ended up going with our own bare metal eventually. Then, when everything moved to the cloud, Rackspace seemed a little…