Rackspace to Acquire Its Rival Datapipe for Multi-Cloud Heft

In the cloud market, the competition is getting fiercer and fiercer, and players continuously put forward different methods to enhance their cloud services and expand their market shares. Rackspace, one of the largest managed cloud computing companies in the world, yesterday announced an agreement to purchase its managed services rival Datapipe, so as to expand its multiple clouds’ management capabilities at scale.

Rackspace CEO Joe Eazor told us that this acquisition is the largest one that Rackspace has ever done by far. And, this deal can bring Rackspace the rich experience that Datapipe has with high-profile public sector clients in America and the U.K., enterprise software, services and tooling, and colocation service on 4 continents, to assist clients move away from those corporate infrastructure.

In addition, this deal can empower Rackspace datacenter presence in Brazil, Russia, mainland China, and on the U.S.A West Coast. In those large markets, Rackspace now does not have or have little presence. Also, this deal brings the company managed services on Alibaba Cloud.

When talking about the purpose of this acquisition, its chief strategy officer Matt Bradley said that the main reason to buy Datapipe is that Rackspace wants to take good advantage of them to expand its own leadership in the multi-cloud services. Buying Datapipe just showed the company now is moving on for that purpose. Besides, Bradley talked that after closing this acquisition, the combined firm is going to be the largest company to offer both managed web hosting solutions and private cloud. Then, the company will have more than 6,700 employees and its annual revenue will be up to $2.4 billion. 

This deal allows Datapipe clients to obtain Rackspace Microsoft related services, OpenStack and VMware clouds, managed enterprise application like SAP and Oracle, as well as Managed Google Compute Platform. 

Eazor said that Rackspace clients are seeking for assist as they deploy their applications across managed web hosting, public and private cloud, as well as colocation, relying on the combination of agility, control, performance, cost-efficiency, and performance that they are looking for. Eazor told that Rackspace is very happy to expend its multi-cloud managed services to its customers, and this deal allows the company to get more chances in the industry.

According to Rackspace’s announcement, Datapipe’s major owner Abry Partners has received Rackspace equity in this acquisition. In Q4, this deal will be closed, but it is still uncertain until after it really happens what will happen with Equinix, Datapipe’s strategic channel partner. 

One year ago, Datapipe bought Adapt, a U.k. managed services firm, to scale its multi-cloud integration expertise and European presence. Rackspace also purchased a consulting and managed cloud provider TriCore services earlier this year. 

For financial details, both sides did not disclose. 

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