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Rackspace Technology

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Rackspace Technology, Inc.
Company typePublic
Nasdaq: RXT
IndustryManaged cloud computing
Founded1998; 26 years ago (1998)
HeadquartersSan Antonio, Texas
Key people
RevenueIncrease $1.794 billion (2014)[2]
Increase $163.529 million (2014)[2]
Increase $110.553 million (2014)[2]
Total assetsIncrease $1.624 billion (2014)[2]
Total equityIncrease $1.073 billion (2014)[2]
OwnerApollo Global Management
Websitewww.rackspace.com

Rackspace Technology, Inc. is an American managed cloud computing company based in Windcrest, Texas, USA. The company also has offices in Blacksburg, Virginia, and Austin, Texas, as well as in Australia, the United Kingdom, Switzerland, the Netherlands,[3] Germany, Singapore, Mexico, and Hong Kong. Its data centers are located in[4] Texas, Chicago, Kansas City, Virginia, the United Kingdom, Germany, Australia, and Hong Kong.

Rackspace became public in 2008, and in 2016 was purchased and taken private by Apollo Global Management LLC.[5]

In June 2020 it changed its name to Rackspace Technology. Then in August 2020, Rackspace Technology went public again.

History

In 1996, Richard Yoo started a small Internet service provider called Cymitar Network Systems out of his garage apartment in San Antonio, Texas. The company began doing application development work in addition to offering basic Internet access and web hosting. In 1997, Yoo brought on Dirk Elmendorf. When the company began to develop Internet applications as its primary business, the company was re-formed as Cymitar Technology Group. As Cymitar Technology Group grew, Patrick Condon was recruited from California and joined the team in 1998. Coincidentally, all three of the company's founders were students at one time at Trinity University in San Antonio.

Although the founders began as application developers for end-users, they found that most companies did not either know how or want to host their applications. The founders wanted to focus on application development–not hosting–but they were unable to find an opportunity to outsource the hosting work. Eventually, the founders realized that it would be better to create a product to serve the hosting need and launch it as a company. Rackspace was launched in October 1998 with Richard Yoo as its CEO. Although most hosting companies focused on the technology end of hosting, Rackspace created its "Fanatical Support" offering to focus on service and support.[6] On March 28, 2000, Rackspace received funding through lead investor Norwest Venture Partners and Sequoia Capital. George J. Still, Jr.[7], Managing Partner at Norwest, subsequently joined the Board of Directors.[8]

The pre-2008 Rackspace Logo

In 2008, Rackspace moved its headquarters from a building once occupied by Datapoint Corporation to the then-unoccupied Windsor Park Mall in Windcrest, Texas. Rackspace's Chairman, Graham Weston, owned the Montgomery Ward building in the mall until 2006 when it was sold to a developer. The city of Windcrest purchased 111 acres (0.45 km2) south of the mall to create a residential and retail complex.[9] The facility is located next to Roosevelt High School, and many Roosevelt students intern at Rackspace.[citation needed]

Fortune's "Top 100 Best Companies to Work For 2008" placed Rackspace as No. 32 the first year that Rackspace applied for consideration. The company was praised for its transparency. Regular "Open Book" meetings are held where the top level leaders share in-depth financial information with all employees.[10] In 2011 and 2013, the company was named as one of the top 100 places to work by Fortune.[11][12]

On August 8, 2008, Rackspace opened for trading on the New York Stock Exchange under the ticker symbol "RAX" after its initial public offering (IPO) in which it raised $187.5 million.[13] The initial public offering included 15,000,000 shares of its common stock at a price of $12.50 per share.[14] The IPO did not do well in the public market and lost about 20% of its initial price almost immediately.[15]

At around 3:45 PM CST December 18, 2009, Rackspace experienced an outage for customers using their Dallas–Fort Worth data center – including those of Rackspace Cloud.[16]

On September 8, 2010, Rackspace received national attention when they decided to discontinue providing web hosting service to one of their customers, Dove World Outreach Center.[17] This was in reaction to Dove World's pastor Terry Jones' plan to burn several copies of the Qur'an on the anniversary of the September 11th attacks. Rackspace claims that this violated their company policy. This move came under criticism, notably from Terry Jones himself, who described it as an "indirect attack on our freedom of speech." Others questioned the appropriateness of Rackspace's action, stating that there is "absolutely no reason for web hosts to have an editorial policy, and this only gives Jones more attention and makes him look more persecuted."[18]

In August 2016, it was confirmed that Apollo Global Management had reached an agreement to buy the company for $4.3 billion.[19] The sale was completed in November 2016 and Rackspace officially ended trading on the New York Stock Exchange on November 3, 2016.[20]

In May 2017, CEO Taylor Rhodes announced he was leaving the company on May 16 to work for a smaller private company in a different city.[21] In May 2017, Rackspace named Joe Eazor as its new CEO.[22] In April of 2019, the company named Kevin Jones as its new CEO. [23]

In June 2020 it changed its name to Rackspace Technology.[24][25]

Acquisitions

On October 22, 2008, Rackspace announced it was purchasing cloud storage provider Jungle Disk and VPS provider SliceHost.[26]

On February 16, 2012, Rackspace acquired SharePoint911, a Microsoft SharePoint consulting company based in Cincinnati, Ohio.[27]

On May 25, 2017, Rackspace announced an agreement to acquire TriCore Solutions.[28]

On September 11, 2017, Rackspace announced plans to acquire Datapipe.[29]

On September 17, 2018, Rackspace announced it had acquired RelationEdge.[30]

On November 4, 2019, Rackspace announced plans to acquire Onica. [31]

Other acquisitions include Cloudkick, Anso Labs, Mailgun,[32] ObjectRocket,[33] Exceptional Cloud Services, and ZeroVM.

Involvement with other companies

Rackspace launched ServerBeach in San Antonio in January 2003 as a lower-cost alternative for dedicated servers designed for technology hobbyists who want flexibility and reliability. Richard Yoo was a catalyst in the startup of ServerBeach. A bandwidth and colocation provider, Peer 1 Hosting now known as Cogeco Peer 1, purchased ServerBeach in October 2004 for $7.5 Million.[34] Peer 1 Hosting entered the UK managed hosting market in January 2009 and the ServerBeach brand now competes directly with the UK arm of Rackspace, run by Dominic Monkhouse, former managing director of Rackspace Limited.[35]

In October 2006, Mosso Inc. was launched, which experimented with white-labeling hosting services.[36] Eventually, the division became the foundation for the Rackspace Cloud Computing offering.

On October 1, 2007, Rackspace acquired Webmail.us, a private e-mail hosting firm located in Blacksburg, VA. Originally branded as Mailtrust on May 20, 2009, it became part of the newly formed Cloud Office division of Rackspace.

On October 22, 2008, Rackspace acquired Slicehost, a provider of virtual servers[37] and Jungle Disk, a provider of online backup software and services.[38]

Rackspace announced on March 8, 2017, plans for an expansion to its portfolio to include managed service for the Google Cloud Platform.[39] The program began beta testing on July 18, 2017, with a planned full offering in late 2017.[40] Rackspace partnered with Google in Customer Reliability Engineering, a group of Google Site Reliability Engineers, to ensure cloud applications "run with the same speed and reliability as some of Google's most widely-used products".[40]

OpenStack

Main article: OpenStack

In 2010, Rackspace contributed the source code of its Cloud Files product to the OpenStack project under the Apache License to become the OpenStack Object Storage component.[41][42]

In April 2012, Rackspace announced it would implement OpenStack Compute as the underlying technology for their Cloud Servers product. This change introduced a new control panel as well as add-on cloud services offering databases, server monitoring, block storage, and virtual networking.[43] In 2015, two Rackspace executives were elected to the board of the OpenStack Foundation.[44] In a February 2016 interview, CTO John Engates stated that Rackspace uses OpenStack to power their public and private cloud.[45]

References

  1. ^ "On the move". CEOWORLD magazine. 2019-03-25. Retrieved 2019-03-25.
  2. ^ a b c d e "Rackspace Investor Relations - News & Events - Press Release". Retrieved 27 July 2016.
  3. ^ "rackspace.com – About Us". Retrieved 2007-08-13.
  4. ^ "Rackspace Data Center Locations". Rackspace.
  5. ^ "Rackspace Completes Previously Announced Transaction with Affiliates of Funds Affiliated with Apollo Global Management to Become a Private Company".
  6. ^ "Web Hosting Interview – Rackspace Managed Hosting". Retrieved 2007-08-13.
  7. ^ MarketScreener. "George J. Still - Biography". www.marketscreener.com. Retrieved 2020-06-05.
  8. ^ "Edgar Online S-1A Filing". Archived from the original on 2009-02-05. Retrieved 2007-11-13.
  9. ^ "San Antonio approves boundary change for Rackspace". Archived from the original on 2007-08-11. Retrieved 2007-08-13.
  10. ^ "Fortune Magazine: 100 Best Companies to Work for 2008". CNN.
  11. ^ "Fortune Magazine". CNN.
  12. ^ "Best Companies to Work For 2013: Full List – Fortune". Money.cnn.com. 2013-01-17. Retrieved 2013-06-27.
  13. ^ "Rackspace IPO needed to cope with fast growth". Networkworld.com. 2008-08-08. Archived from the original on 2013-06-03. Retrieved 2013-06-27.
  14. ^ "Initial Public Offering – Press Release".
  15. ^ "Rackspace IPO tanks".
  16. ^ "Rackspace Goes Down. Again. Takes The Internet With It. Again". Retrieved 2009-12-18.
  17. ^ "Dove World, Terry Jones site pulled down by Web hosting company".
  18. ^ Saint, Nick (September 9, 2010). "San Francisco Chronicle". The San Francisco Chronicle.
  19. ^ Medhora, Narottam (August 26, 2016). "Apollo Global to buy Rackspace Hosting in $4.3 billion deal". Reuters. Retrieved August 26, 2016.
  20. ^ Brezosky, Lynn (3 November 2016). "It's official: Rackspace exiting New York Stock Exchange". Retrieved 3 November 2016.
  21. ^ "Rackspace CEO Rhodes resigns 6 months after sale". San Antonio Express-News. Retrieved 2017-05-04.
  22. ^ at 03:01, Simon Sharwood 25 May 2017. "Rackspace demotes a CEO to hire a CEO to replace CEO who quit". www.theregister.co.uk. Retrieved 2019-05-01.{{cite web}}: CS1 maint: numeric names: authors list (link)
  23. ^ "Rackspace names new CEO". www.bizjournals.com. Retrieved 2019-05-01.
  24. ^ www.bizjournals.com https://www.bizjournals.com/sanantonio/news/2020/06/08/rackspace-adds-technology-to-its-name.html. Retrieved 2020-06-10. {{cite web}}: Missing or empty |title= (help)
  25. ^ Tsidulko, Joseph (9 June 2020). "Rebranded Rackspace Ready To Conquer Multi-Cloud". CRN. Retrieved 2020-06-10.
  26. ^ Kincaid, Jason. "Rackspace Acquires JungleDisk, Slicehost To Take On Amazon Services". TechCrunch. Retrieved 19 March 2019.
  27. ^ "Rackspace Buys Up SharePoint911 To Gird For Cloud Fight".
  28. ^ "Rackspace Announces Agreement to Acquire TriCore Solutions". Rackspace.
  29. ^ "Rackspace Announces Agreement to Acquire Datapipe". Rackspace.
  30. ^ "Rackspace Acquires RelationEdge to Broaden Application Services". Rackspace.
  31. ^ "Rackspace to Acquire Onica a Cloud Native Consulting and Managed Services Company". GlobeNewsWire.
  32. ^ "Rackspace to Improve Cloud-Based Email Services by Acquiring Mailgun Inc".
  33. ^ "ObjectRocket Acquired by Rackspace".
  34. ^ "Peer 1 Buys ServerBeach for $7.5 Million". Retrieved 2007-08-13.
  35. ^ "Peer 1 & ServerBeach enter UK market with ex-Rackspace MD".
  36. ^ "Mosso Leverages Utility Computing to Provide Complete Hosting Solution for Web Professionals". Retrieved 2007-08-13.
  37. ^ "Slicehost Acquired By Rackspace". Retrieved 2011-01-12.
  38. ^ "Jungle Disk Acquired By Rackspace". Retrieved 2011-01-12.
  39. ^ Lardinois, Frederic (8 March 2017). "Rackspace now offers managed services for Google's Cloud Platform". TechCrunch. Retrieved 7 October 2017.
  40. ^ a b Lee, Patrick (18 July 2017). "Announcing Managed Google Cloud Platform by Rackspace". Rackspace. Retrieved 7 October 2017.
  41. ^ Moorman, Lew (2010-07-18). "Opening The Rackspace Cloud – The Official Rackspace Blog". Rackspace.com. Retrieved 2013-06-27.
  42. ^ "The Official Rackspace Blog". Rackspace.com. Archived from the original on 2012-01-26. Retrieved 2013-06-27.
  43. ^ "The Rackspace Cloud Powered By OpenStack". Rackspace. Retrieved 2012-05-24.
  44. ^ Mike W. Thomas, "OpenStack Foundation adds two Rackspace execs to board of directors" San Antonio Business Journal January 20, 2015
  45. ^ "Rackspace Focuses on Fanatical Support, Grows to 6,000+ Employees | HostAdvice". HostAdvice. Retrieved 2017-07-27.
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