Rackspace Technology, Inc. - RXT STOCK NEWS

Rackspace Technology (NASDAQ: RXT) announced significant board and executive changes while reaffirming its Q4 2024 financial guidance. Jeffrey Benjamin has been appointed as Independent Chairman, replacing David Sambur, while Vikram Mahidhar, an AI and data expert from Apollo Global Management, joins the board replacing Susan Arthur.

The company also announced that Brian Lillie, President of Private Cloud, will be departing, with CEO Amar Maletira serving as Interim Leader for the Private Cloud business until a successor is found. Lillie will remain in an advisory capacity until April 5, 2025.

The company reported strong performance with record-breaking quarterly sales bookings in Q4 2024, achieving high double-digit growth both year-over-year and sequentially, marking the highest bookings since the creation of their two business units in early 2023.

Rackspace Technology (NASDAQ: RXT) has released its '2025 State of Cloud Report', revealing significant shifts in cloud strategy among IT leaders. The survey of 1,400+ IT decision-makers shows that over 90% plan major cloud strategy changes in the next two years, with 48% prioritizing hybrid cloud deployment.

Key findings include that 69% of organizations have considered repatriating workloads from public to private clouds, citing security, compliance, and cost savings. Only 16% of respondents have fully integrated cloud adoption into their business strategy. The survey also highlights that 84% of respondents are integrating AI with their cloud strategies, primarily to enhance operational efficiency (49%) and improve data analytics (45%).

Major challenges include talent shortages (40%) and insufficient budgets (37%). Future priorities include Cloud Enabled 5G services (50%), Cloud Native AI/ML Services (47%), and Cloud Based Robotics (40%).

Rackspace Technology (Nasdaq: RXT) announced that CEO Amar Maletira and CFO Mark Marino will participate in a fireside chat at the UBS Global Technology and AI Conference on December 4, 2024, from 10:55 AM to 11:25 AM MT. The session will be available via live webcast, with a replay accessible through Rackspace's investor relations website.

Rackspace Technology (NASDAQ: RXT) has launched Adaptive Cloud Manager, a proprietary solution built on Microsoft Azure Arc technology. This new offering creates a centralized dashboard for managing hybrid cloud environments, improving observability, licensing efficiency, and security monitoring across private and public cloud workloads. The solution streamlines customer onboarding to hybrid architectures with Microsoft Azure through automated services, helping optimize datacenter footprints and Operating Expenses (OpEx) by facilitating workload migration to Azure.

Rackspace Technology has successfully deployed one of the largest Epic Electronic Health Record (EHR) systems for AdventHealth, covering 53 hospitals across nine states. The implementation scales to over 38,000 concurrent users, making Rackspace the largest third-party Epic hosting provider globally. The deployment includes SLA-backed managed services, a predictable cost model, and cloud adjacency for third-party applications. The migration was completed in under 2 hours, with AdventHealth reporting notable performance improvements since going live. The system serves over 8 million patients annually and includes hosting and management of nine additional strategic applications in AdventHealth's IT portfolio.

Rackspace Technology reported Q3 2024 results with revenue of $676 million, down 8% year-over-year. Private Cloud revenue decreased 14% to $258 million, while Public Cloud revenue fell 3% to $418 million. The company posted a net loss of $187 million, or $(0.82) per diluted share, improving from a net loss of $227 million in Q3 2023. Non-GAAP Operating Profit was $34 million, down 25% year-over-year. The company ended the quarter with $157 million in cash and provided Q4 2024 guidance projecting revenue between $668-$680 million.

Rackspace Technology (NASDAQ: RXT) has joined Amazon Web Services' (AWS) new Generative AI Partner Innovation Alliance. This collaboration aims to expand the AWS Generative AI Innovation Center (GenAIIC), a program launched in June 2023 that helps customers implement generative AI solutions. The GenAIIC has already supported thousands of customers, with over 50% of proof-of-concept solutions now in production. Through this alliance, Rackspace will utilize GenAIIC's methodology to help global customers access resources for proof-of-concept and production implementations, leveraging their Foundry for AI by Rackspace (FAIR™) platform to accelerate responsible AI adoption.

Rackspace Technology (NASDAQ: RXT) has announced the expansion of Rackspace Spot with a new geographic location and an on-demand GPU-as-a-Service powered by NVIDIA accelerated computing. The service includes a new server class featuring the NVIDIA H100 Tensor Core GPU, offering enhanced computational capabilities for AI, machine learning, and data analytics workloads. The platform is hosted in their new SJC3 data center in Silicon Valley, marking their seventh global location. According to IDC, AI datacenter capacity is projected to grow at a 40.5% CAGR through 2027.

Rackspace Technology (NASDAQ: RXT) has signed a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to deliver comprehensive cloud and AI services globally. The partnership includes significant investment in Rackspace's Migration and Modernization Center of Excellence and introduces the Rackspace Rapid Migration Offer (RRMO) for expedited data center migrations. The collaboration will leverage AWS's foundation models through Amazon Bedrock and Rackspace's FAIR™ platform for generative AI solutions. A notable success case is Convera, which automated its customer support operations using these technologies, reducing processing times from hours to minutes. Starting early 2025, Rackspace will launch AWS-validated generative AI industry accelerators in AWS Marketplace.