Rackspace edges further away from the public cloud

Rackspace edges further away from the public cloud

Rackspace Inc. looks like its retreating even further from the public cloud with reports suggesting that up to 90 of its employees are being shifted to faster growing businesses in the company, such as hybrid and private cloud.

It’s not clear if any employees are going to be laid off, the San Antonio Business Journal reported on Tuesday. However, Rackspace told the Journal that it reshuffles its employees, which it refers to as “Rackers”, quite regularly to focus on “fast growing areas of its business”. It added that “from time to time” it does also eliminate some roles in certain areas when it decides to reduce investment.

Rackspace currently boasts a 6,000-strong workforce.

The company says it’s putting some of those 90 employees to work in areas like engineering private and hybrid clouds, and marketing for its public cloud services. It says the move is being made in preparation of an expected slowdown in new signups for OpenStack public cloud service, because most public cloud workloads these days end up in the hands of Amazon Web Services (AWS) or Microsoft Azure.

“At Rackspace, we regularly align Rackers to fast-growing areas of our business and may from time to time eliminate some roles in areas where we choose to reduce our investment,” the company said in a later statement. “We help Rackers, whose roles are eliminated, try and find new roles within the company and many do so. We anticipate that our 6,000-plus Racker workforce will continue to grow this year.”

If Rackspace does end up growing its workforce later this year it’ll be some success. The company has struggled in a public cloud market that has been ruthlessly unkind to companies trying to dislodge AWS and Azure. A number of challengers have fallen by the wayside, including Hewlett-Packard Enterprise and most recently, Verizon Wireless. As for Rackspace, it hasn’t given up, but it’s shifted its focus to forging partnerships with larger vendors like Red Hat Inc. to offer a hybrid cloud solution. Rackspace also notably teamed up with AWS and Azure to offer Fanatical Support, in response to customer demand for this kind of service.

RELATED:  The future of cloud: Can 'true private' compete with public and hybrid? | #CrowdChat

In its most recent earnings call, Rackspace CEO Taylor Rhodes pointed to “high double digits” growth in the company’s OpenStack private cloud business.

Photo Credit: Garrett Heath via Compfight cc

Mike Wheatley

Mike Wheatley is a senior staff writer at SiliconANGLE. He loves to write about Big Data and the Internet of Things, and explore how these technologies are evolving and helping businesses to become more agile.

Before joining SiliconANGLE, Mike was an editor at Argophilia Travel News, an occassional contributer to The Epoch Times, and has also dabbled in SEO and social media marketing. He usually bases himself in Bangkok, Thailand, though he can often be found roaming through the jungles or chilling on a beach.

Got a news story or tip? Email Mike@SiliconANGLE.com.

SIGN UP FOR THE SiliconANGLE NEWSLETTER!

Join our mailing list to receive the latest news and updates from our team.

SIGN UP FOR THE SiliconANGLE NEWSLETTER!

Join our mailing list to receive the latest news and updates from our team.

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Share This

Share This

Share this post with your friends!