UPDATED 09:15 EDT / NOVEMBER 02 2010

Is Rackspace Dell’s Cloud Acquisition?

Dell’s got big plans for the cloud—as well it should. Between tablets and growing storage needs around computers, Dell’s future is intrinsically tied to the cloud, on an enterprise and consumer standpoint.

The company has indicated its intentions for the cloud, with news of an impending cloud-related acquisition to be announced some time today at a conference in Hong Kong. Very few details have been released regarding Dell’s acquisition, but anticipation runs high, as the company already lost one big bid this year, giving up 3PAR to rival manufacturer HP.

One company that may be in the running for Dell’s cloud acquisition is Rackspace, which is rumored to have been of interest to Dell. Rackspace’s shares rose $1.69 amidst the speculation, which is more than a 6% increase. The hosting company’s shares now sit around $27, based on these acquisition expectations.

Dell’s acquisition of Rackspace is a probable one, as it takes Dell in a direction that fits well with businesses and consumers. Rackspace has had its own series of updates lately, growing its team across various sectors and proactively adding tools for mobile computing and monitoring virtual systems in an integrated manner.

Other companies mentioned in the Dell acquisition case include Brocade, which is not likely, and Radware.

In related news, Amazon has slashed cloud hosting prices yet again, anxious to attract more customers for its virtualized solutions.


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