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 been recognized as a leader in four categories of the 2024 ISG Provider Lens™ AWS Ecosystem Partners Report for the US. The company excelled in Professional Services, Managed Services, Data Analytics, AI and ML, and SAP Workloads. Rackspace boasts over 2,700 AWS certifications worldwide and 18 AWS competencies, positioning it among 13 Leaders in the AWS Partner Ecosystem. ISG highlighted Rackspace's mature technology offerings and talent assets through the AWS Cloud Adoption Framework, particularly noting their strong cloud engineering teams capable of implementing compliant and well-governed data solutions.
Rackspace Technology has strengthened its commitment to the global OpenInfra Foundation by joining its Board of Directors and becoming an OpenStack community Platinum Member. This highest level of membership allows Rackspace to influence the strategic direction of the OpenInfra Foundation community and the industry. The company, which partnered with NASA in 2010 to launch OpenStack, cites increasing demand for OpenStack due to organizations seeking multicloud flexibility, hybrid infrastructure solutions, and cost-efficient cloud consumption.
OpenStack's advantages include empowerment, scalability, flexibility, automation, performance, and interoperability. It's experiencing a resurgence due to expanding demands for data sovereignty, privacy, and cost control. Industries leveraging OpenStack include retail, pharmaceuticals, and banking. Rackspace Technology aims to expand its contributions to the OpenInfra community through this renewed commitment.
Rackspace Technology (NASDAQ: RXT) has launched the Rackspace Rapid Migration Offer (RRMO) to expedite data center migrations to Amazon Web Services (AWS). This comprehensive service includes:
1. Migration planning
2. Landing zone setup
3. Migration execution
4. 24/7/365 Day 2 cloud operations support
RRMO features a fixed per-VM pricing model and includes a two-month trial of Rackspace Modern Operations. The offer is designed to minimize business risks, disruption, and downtime during migration. Key benefits include simplified pricing, a complete migration package, and enhanced rehosting functionality. The service is now available in the AWS Marketplace for customers deploying 100 VMs or more.
Rackspace Technology (NASDAQ: RXT) has collaborated with CAS, a division of the American Chemical Society, to modernize its OpenStack Private Cloud. This upgrade enhances CAS's ability to provide scientific innovators with access to cutting-edge, lifesaving research in chemistry and life sciences. The project focused on improving resiliency, reliability, and functionality of CAS's private cloud infrastructure.
Key achievements include:
- A Minimal Viable Product (MVP) upgrade that advanced CAS through several OpenStack versions with zero downtime
- Management of three important OpenStack environments: development, non-production, and production
- Enhanced support for CAS's new life sciences product line, the CAS BioFinder Discovery Platform™
This collaboration has resulted in cost savings, system optimization, and improved consistency for CAS's mission-critical cloud environment.
Rackspace Technology (NASDAQ: RXT) has unveiled Rackspace Lab Services (RLS), a cloud SaaS solution that transforms training, testing, and demonstration environments globally. RLS combines Broadcom VMware Lab Platform with Rackspace SDDC Flex to offer an on-demand, consumption-based service for simulating complex real-world environments.
Key features include flexible distance learning, experiential learning, scalability, and LTI integration. Benefits range from fully maintained virtual lab environments to enhanced revenue opportunities. RLS aims to accelerate project timelines, facilitate quicker innovation, and provide a competitive advantage for companies.
The service is now available globally as an on-demand, pay-for-use solution, setting a new standard for workforce empowerment, sales facilitation, and application testing.
Rackspace Technology has launched Rackspace OpenStack Enterprise, a fully-managed, enterprise-ready cloud solution built to ensure critical workloads are secure, efficient, and perform at scale. This move reaffirms Rackspace's long-standing commitment to OpenStack and open-source principles.
Key points:
- Rackspace aims to provide cost-effective, flexible cloud alternatives with high control
- The company has contributed over 5.6 million lines of code to OpenStack
- Rackspace has over one billion server hours of experience operating OpenStack clouds
- The new offering addresses security, compliance, cost efficiency, and application modernization needs
- CAS, a division of the American Chemical Society, partnered with Rackspace to modernize its OpenStack Private Cloud
This launch builds on Rackspace's heritage of open-source leadership and development, empowering businesses to prioritize innovation over infrastructure.
Rackspace Technology (NASDAQ: RXT) has partnered with TrueData, a leader in independent omnichannel identity resolution, to achieve significant cloud cost reduction on AWS. Rackspace implemented Optimizer+ for TrueData, providing enhanced visibility into cloud spending and cost optimization strategies. The collaboration resulted in TrueData reducing its monthly cloud expenses by approximately 85% while expanding capabilities.
Key achievements include:
- Shifting to more cost-effective EC2 instances
- Optimizing AWS EBS and S3 storage
- Migrating from a third-party data warehouse to a fully AWS-based solution
- Improving resource use through Spot Instances
This partnership allows TrueData to focus on its core product offerings while Rackspace manages cloud cost optimization, positioning the company for future innovation and growth.
Rackspace Technology (Nasdaq: RXT) reported its Q2 2024 results, showing a revenue decline of 8% year-over-year to $685 million. Private Cloud revenue decreased by 17% to $260 million, while Public Cloud revenue fell 2% to $425 million. Despite the revenue drop, the company saw improvements in profitability, with a net income of $25 million compared to a net loss of $27 million in Q2 2023. Earnings per diluted share were $0.11, up from a loss of $0.13 per share last year. However, Non-GAAP Operating Profit decreased by 42% to $23 million. The company provided Q3 2024 guidance, projecting total revenue between $668-$680 million and a Non-GAAP Loss Per Share of $(0.06) - $(0.08).
Rackspace Technology (NASDAQ: RXT), a leading provider of hybrid multicloud and AI solutions, has announced it will release its second quarter 2024 financial results on Thursday, August 8, 2024, after market close. The company will host a conference call on the same day at 5:00 PM EDT to discuss the results.
Key details for the earnings call include:
- CEO Amar Maletira and CFO Mark Marino will lead the discussion
- Toll-free number for USA & Canada: (800) 715-9871
- International toll number: (646) 307-1963
- Conference ID: 4653491
Investors can access the live webcast or replay on Rackspace's IR website.
Rackspace Technology announced that Basware, a leading provider of accounts payable automation solutions, has successfully leveraged AI to enhance its Extract, Transform, Load (ETL) coding process. Basware partnered with Rackspace to experiment with training code-generating language models using Amazon Bedrock and AWS. This collaboration aimed to accelerate customer onboarding and time to value.
Basware's proprietary language, AnyERP, was fine-tuned into an AI model to generate code snippets based on natural language queries. The project improved AI accuracy in generating ETL code from 60% to 90%. This innovation enables Basware to accelerate time to value for customers by 50%, allowing them to focus more on business operations rather than technology implementation.
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