Rackspace rallies following acquisition chatter


Vague M&A chatter is providing a boost to Rackspace (RAX +4.2%) on a down day for tech stocks.

The Web hosting/cloud infrastructure provider is no stranger to M&A speculation. The recent retirement of long-time CEO Lanham Napier might be making investors more willing to believe Rackspace could be sold.

Over 11% of the float was shorted as of March 14.

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Comments (8)
  • Van Hyder
    , contributor
    Comments (172) | Send Message
     
    Who in their right minds would want to buy RAX? They have to know they will be going up against GOOG, AMZN & MSFT in the cloud/server space. I'll believe it when I see it.
    4 Apr 2014, 01:08 PM Reply Like
  • lkrastogi
    , contributor
    Comment (1) | Send Message
     
    Well, you replied to your own question, GOOG, AMZN & MSFT. Add Verizon, AT&T to the list
    5 Apr 2014, 03:58 AM Reply Like
  • CornStove
    , contributor
    Comments (219) | Send Message
     
    NOTE: GOOG, MAZN, MSFT just cut their Cloud prices 25-35% !!!! I wonder how RAX is going to compete ... even survive!
    4 Apr 2014, 01:15 PM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2071) | Send Message
     
    remaining short RAX...................... buy RAX when you can buy a mountain of servers if that is the game plan.........agree w/ CornStove......RAX is odd man out in the GOOG / AMZN wars....remember...moores law for cloud storage pricing.......25% reduced prices every 3 mo
    4 Apr 2014, 01:25 PM Reply Like
  • leonixs
    , contributor
    Comments (107) | Send Message
     
    Oracle or Microsoft can buy it.
    4 Apr 2014, 07:45 PM Reply Like
  • contractor148
    , contributor
    Comments (4) | Send Message
     
    And now VMware
    7 Apr 2014, 04:01 PM Reply Like
  • contractor148
    , contributor
    Comments (4) | Send Message
     
    VMware provides more competition as true Cloud, use it on or off premise without any change to the application.... OpenStack can't (currently) provide this
    7 Apr 2014, 04:01 PM Reply Like
  • aries1980
    , contributor
    Comments (32) | Send Message
     
    OpenStack (the technology that RAX and some others, e.g. RedHat use) not ties you in to the provider. You can simply spin out your application to host it on your irons or at other provider.

     

    You can't do it with Google Apps, vCloud (VMware), Amazon, IBM, etc. Their API is proprietary, they determinates the architecture of your application that makes costly to replace. Not with RAX.

     

    RAX also operates more datacenters which can be important to national laws. E.g. Amazon, Google have no datacenter in UK, but in Ireland which makes to lot of companies a no-option to host. Also they have datacenter in Hong Kong, while AWS and Google is not available there. If your architecture is tied to such provider, this might cut your business growth. With RAX you spin up and migrate the sensitive clients/data to your private datacenter on-demand, easily.

     

    Also, check the server benchmarks. It doesn't matter how many cores you have if it much slower than the counter-offer. There is an open-source tool on Github you can use for real-life scenarios (not just a dumb Hello World). That is the biggest reason why most RAX client are still with RAX over the years.

     

    Talk to people who actually write code. There are lots of difference between cloud providers and services.
    8 Apr 2014, 05:19 PM Reply Like
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