Welcome to our dedicated page for Rackspace Technology news (Ticker: RXT), a resource for investors and traders seeking the latest updates and insights on Rackspace Technology stock.
Overview
Rackspace Technology, Inc. is a premier managed cloud and hybrid IT services company designed to simplify the complexities of modern cloud computing. With a robust portfolio that spans hybrid, multicloud, and AI-driven solutions, the company partners with organizations to design, build, and operate their cloud environments across all major technology platforms. Leveraging deep expertise in open-source initiatives and close collaboration with industry giants, Rackspace delivers customized solutions that address the technical, operational, and security challenges associated with diverse IT infrastructures.
Core Services and Business Model
At its essence, Rackspace Technology is dedicated to enabling organizations to tap into the power of cloud computing without the burden of managing intricate IT systems. The company generates revenue mainly through consumption-based contracts and professional services, helping customers move, manage, and optimize their cloud environments. Its integrated service model encompasses:
- Application Services: Delivering custom solutions to modernize and streamline applications.
- Data and Analytics: Offering strategic data management and insight generation to empower decision-making.
- Cloud and Managed Hosting: Providing end-to-end support for both public and private cloud deployments.
- Security and Compliance: Ensuring that sensitive data and applications meet stringent industry standards.
- Professional Services: Delivering expert consulting and implementing tailored IT transformations.
Market Position and Competitive Differentiation
Rackspace Technology occupies a unique position in the IT industry by combining deep technical expertise with a customer-centric approach. Its ability to manage hybrid and multicloud environments allows it to serve a diverse clientele—from SMBs seeking cost-effective solutions to global enterprises requiring high levels of operational resilience and security. What sets Rackspace apart is its commitment to "fanatical support," an approach that delivers high-touch managed services while addressing both immediate and long-term infrastructure challenges. The company’s strategic emphasis on open-source cloud management, demonstrated through its leadership in OpenStack deployments and innovative cloud optimization practices, further establishes its authoritativeness in the industry.
Service Excellence and Industry Expertise
Rackspace’s service offerings are grounded in over a decade of operational expertise, contributing millions of lines of code to open-source projects and managing large-scale cloud deployments for critical applications. The company’s ability to optimize cloud spending, as evidenced by its work with organizations in sectors as varied as healthcare, ecommerce, and advanced technology research, highlights its proficiency in delivering both cost savings and enhanced performance. By seamlessly integrating technologies from leading partners such as Microsoft, VMware, and AWS, Rackspace enables customers to transition smoothly to cloud environments without being locked into a single technology stack. This flexibility and its extensive experience in managing complex cloud ecosystems have positioned Rackspace as a trusted collaborator in digital transformation initiatives across the globe.
Operational Model and Customer-Centric Approach
At the heart of Rackspace’s operations is an unwavering focus on customer outcomes. Its service model is built on a foundation of transparency, proactive cost optimization, and continuous innovation. Whether it is through the deployment of GPU-as-a-service (GPUaaS) for high-performance workloads or the implementation of specialized frameworks to enhance security and compliance, Rackspace tailors its solutions to meet specific industry needs. The company’s comprehensive approach not only reduces the burden on internal IT teams but also enables organizations to focus on their core business objectives, thereby driving operational efficiency and unlocking new opportunities for growth.
Technical Innovation and Integration
Emphasizing an integrated technology approach, Rackspace Technology addresses the full spectrum of IT requirements by providing scalable and versatile cloud solutions. The use of advanced automation tools, Infrastructure-as-Code (IaC), and proactive monitoring ensures that clients receive continuous, optimized performance across diverse cloud environments. Additionally, its contributions to the open-source community underscore a broader commitment to collaborative innovation, helping to shape industry standards and best practices. This dedication to technical excellence reinforces Rackspace’s role as both a technology innovator and an indispensable partner for businesses navigating the digital landscape.
Conclusion
In summary, Rackspace Technology, Inc. is more than just a cloud service provider—it is a multifaceted IT solutions partner that combines technical sophistication with practical, customer-focused solutions. By managing hybrid, multicloud, and AI-powered environments with precision and reliability, the company stands as a critical enabler for businesses looking to modernize their IT infrastructure and achieve sustainable operational excellence. For investors and stakeholders seeking a deep and nuanced understanding of the cloud services arena, Rackspace represents a case study in the efficient management of technology complexities and the delivery of end-to-end value.
Rackspace Technology (NASDAQ: RXT) has unveiled Rackspace AI Business, a comprehensive AI-optimized hybrid cloud platform designed for enterprises with AI training and inferencing needs. The platform, announced on March 25, 2025, combines advanced private cloud infrastructure powered by Dell Servers and NVIDIA GPUs with enterprise-grade security features.
The solution addresses key challenges in AI deployment and scaling, offering specialized infrastructure for:
- Distributed training with multi-GPU and multi-node capabilities
- Scalable inferencing for real-time predictions
- Fine-tuning capabilities for pre-trained models
Developed in collaboration with the Foundry for AI by Rackspace (FAIR™), this fully managed private cloud solution aims to accelerate time-to-value while maintaining security and compliance standards for enterprise operations.
Rackspace Technology (NASDAQ: RXT) has partnered with Domino's Pizza UK & Ireland to enhance the pizza chain's digital capabilities through a robust hybrid cloud environment. This infrastructure supports Domino's expanding network of approximately 1,400 stores with plans to grow to over 1,600 locations.
Domino's has transformed from a traditional takeaway business into a technology-driven enterprise, with most sales flowing through digital channels and nearly six million active customers using their mobile application. The company worked with Rackspace to build a hybrid technology environment combining private cloud stability with the scalability of Microsoft Azure.
Key improvements include:
- Modernizing the e-commerce platform from monolithic architecture to microservices running on Azure Kubernetes Service
- Implementing Infrastructure-as-Code (IaC) practices for consistency across environments
- Deploying Microsoft Dynamics 365 to modernize supply chain and finance operations
The partnership, ongoing since 2011, has been particularly valuable during high-demand periods like the 2022 FIFA World Cup, enabling Domino's to handle significant traffic spikes while maintaining performance.
Rackspace Technology (RXT) reported Q4 2024 results with revenue of $686 million, down 5% year-over-year. Full-year 2024 revenue was $2,737 million, declining 7% from 2023. The company's Q4 performance exceeded guidance for revenue, operating profit, and EPS.
Q4 Private Cloud revenue decreased 6% to $269 million, while Public Cloud revenue fell 4% to $417 million. The company reported a Q4 net loss of $60 million, or $(0.26) per diluted share, compared to net income of $28 million in Q4 2023. Operating cash flow was $54 million in Q4.
For full-year 2024, the company recorded a net loss of $863 million, with Non-GAAP Operating Profit at $106 million, down 33% year-over-year. Despite revenue declines, bookings grew 14% year-over-year, achieving record-breaking quarterly sales bookings.
Rackspace Technology (NASDAQ: RXT) has announced a transformative 10-year, multi-million-dollar partnership with Seattle Children's Hospital to provide comprehensive managed cloud solutions. The agreement focuses on transforming the hospital's data center operations and modernizing infrastructure for clinical and non-clinical workloads through Rackspace's Healthcare Cloud.
Through Rackspace's Cost and Productivity Optimization (CPO) assessment framework, the partnership aims to streamline IT operations, phase out legacy technologies, and create a standardized managed services model across private and public clouds. Rackspace will manage Seattle Children's workloads on its private cloud and major platforms like Azure and AWS.
The implementation is expected to deliver enhanced agility, reliability, scalability, and security while significantly reducing IT costs. These savings will allow Seattle Children's to maintain focus on their core mission of enhancing patient care and advancing pediatric research initiatives.
Rackspace Technology (NASDAQ: RXT) has successfully partnered with Dealer eProcess (DEP) to enhance their digital capabilities on Google Cloud. DEP, a leading automotive digital agency founded in 2006, needed to scale its infrastructure to support growing customer demands across North America and Europe.
The collaboration resulted in implementing a comprehensive cloud solution leveraging various Google Cloud services, including managed instance groups (MIGs), Filestore, MemoryStore, Cloud SQL, and Cloud Load Balancing. The migration from private cloud to Google Cloud has enabled DEP to efficiently manage millions of monthly visitors through their flagship product, Everest, an AI-powered platform integrating websites, marketing, and retail tools.
The new infrastructure allows DEP to rapidly deploy resources, handle traffic spikes, and quickly onboard new customers, particularly when adding hundreds of websites simultaneously through OEM partnerships. The solution has significantly improved DEP's operational efficiency and scalability, supporting their 99% customer satisfaction rating.
Rackspace Technology (RXT) has partnered with Munster Technological University (MTU) to launch QCloud, Ireland's first quantum cloud computing hub on AWS. The platform connects 13 research institutes and supports 11 major quantum computing projects across Ireland. QCloud was developed to democratize access to quantum computing resources and launched in February 2024 with funding from the EOSC Future project.
The implementation includes a centralized platform providing quantum computing access to eight universities, featuring AWS Control Tower landing zone and custom quantum cost control dashboard for Amazon Braket. Since its launch, QCloud has supported 12 startups and established Ireland as a quantum research hub. MTU expects to double its research projects in the coming year.
Rackspace Technology (RXT) has partnered with American Logistics to develop a cloud-native AWS environment for non-emergency medical transportation (NEMT). The new platform replaces American Logistics' legacy systems with a modern, scalable solution designed to handle complex healthcare transportation requirements.
The implementation features an event-driven microservices model deployed across six domains in Amazon Elastic Kubernetes Service containers, utilizing Amazon DynamoDB for operational data and Amazon SNS for event handling. The solution includes automated workflows and Infrastructure as Code through Terraform, enabling streamlined cloud infrastructure management.
The modernized platform has enhanced American Logistics' operational efficiency by automatically processing business rules and eligibility verifications while improving issue resolution and member experiences. The system leverages comprehensive trip histories and streamlined workflows to better serve Medicare and Medicaid beneficiaries requiring transportation services.
Rackspace Technology (NASDAQ: RXT) has signed a Memorandum of Understanding (MOU) with Dubai Health to explore establishing a Healthcare Digital Hub. The initiative will utilize AI and cloud technologies to optimize operational efficiency and provide tailored solutions for Dubai Health and its partners.
The partnership aims to enhance healthcare delivery and improve patient outcomes through digital innovation. According to Atif Al-Braiki, Chief Digital and AI Officer of Dubai Health, the Digital Hub will enable further optimization of their operations. CEO Amar Maletira highlighted this partnership as a significant step for Rackspace, aligning with a respected healthcare institution and marking a pivotal moment in the company's Middle East and Africa (MEA) growth strategy.
Rackspace Technology (NASDAQ: RXT) has announced it will release its fourth quarter 2024 financial results after market close on Thursday, February 20, 2025. The company will host a conference call on the same day at 5:00 PM ET, featuring CEO Amar Maletira and CFO Mark Marino, who will discuss the company's financial performance.
Interested parties can access the conference call through a live webcast available on Rackspace's IR website. Additionally, participants can pre-register to obtain a dial-in number and PIN for direct call access.
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.
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