Seeking Alpha

Rackspace (RAX -3.3%) dives after Amazon Web Services (AMZN +0.2%) cuts EC2 cloud computing...

Rackspace (RAX -3.3%) dives after Amazon Web Services (AMZN +0.2%) cuts EC2 cloud computing prices for dedicated instances (i.e. hardware dedicated to a single client) by up to 80%. Though AWS is known for cutting prices early and often, the size of this cut makes it noteworthy. Moreover, the fact it covers dedicated hardware suggests Amazon is taking aim not only at the cloud infrastructure services provided by the likes of Rackspace, Microsoft, and Google, but also the traditional hosting services offered  by Rackspace and others.
Comments (3)
  • I don't think Amazon is Rackspaces problem; it is Digital Ocean, which according to Netcraft move stats, swallowed 1,500 Rackspace hosted customer servers in the first 6 months of the year. Digital Ocean is outgrowing everyone at the moment, even AWS.
    10 Jul 2013, 10:29 AM Reply Like
  • Fwiw, 10,000 or so web facing hosts and growing 30% per month. AWS main danger is feature bloat vs simple cookie-cutter instances - that fit nicely with modern, simplified open source stacks.
    10 Jul 2013, 10:48 AM Reply Like
  • AMAN --EPS still ----(-.20)
    26 Jul 2013, 09:32 AM Reply Like
DJIA (DIA) S&P 500 (SPY)