As most of you know I am a huge sports fan. One of the things I love to see is when two athletes compete fiercely – and also clearly respect one another. You see players congratulate each other, share a laugh, and ask about each other’s families. You even see great players join together to pursue championships, like Kevin Durant and Stephen Curry.
That’s how things have been between Datapipe and Rackspace. For years, we have regarded Rackspace as a respected rival. Our counterparts at Rackspace say they’ve viewed us in the same way. And now we’ve agreed to do what sports rivals sometimes can: We’ve agreed to join forces to pursue greatness.
Once the transaction closes, I’m convinced that we will be better together – better able to serve customers’ multi-cloud needs worldwide in a highly competitive and fragmented industry. This transaction will make the combined Datapipe and Rackspace:
- The world’s leading provider of multi-cloud managed services.
- The world’s leading provider of managed public cloud: on the Alibaba Cloud, AWS, Google Cloud Platform, and Microsoft Azure.
- Still the world’s leading provider — and now by a wider margin — of the managed hosting and private cloud solutions that more companies are using as they move critical workloads out of their corporate data centers.
As the leaders of Datapipe and Rackspace have learned more about one another, we’ve been struck by how similar our two companies are. We’re both known for our engaged workplace cultures, technical expertise, profitable growth, and exceptional customer service. Rackspace gives its customers what it calls Fanatical Support, just as we extend Operational Empathy to our customers. Both companies have been positioned as leaders in the Gartner Magic Quadrant assessments of managed service providers of managed cloud services, and in industry rankings by Forrester and other leading analyst firms.
For all those similarities, we bring Rackspace new capabilities, including:
- Experience serving public sector customers, including the U.S. Departments of Defense, Energy, and Treasury, as well as the U.K. Cabinet Office, Ministry of Justice, and Department of Transport. Rackspace is excited to see that we’ve achieved coveted FedRAMP and FISMA certifications.
- Data centers and offices in key markets, including the west coast of the U.S., Brazil, mainland China, and Russia, where Rackspace today has little or no presence – and where Rackspace’s multinational customers would like it to serve them.
- Software and tooling to better serve enterprise customers: e.g., ServiceNow orchestration and automation, e-bonding with customer ticketing systems.
- More robust professional services for customers that want to migrate to managed public cloud.
- Traditional colocation services across four continents, to reduce cost and risk for customers moving applications out of their corporate data centers.
- Managed public cloud services on the Alibaba Cloud.
- Deep experience in managed multiple major workloads for large enterprises. While Rackspace today serves a majority of the global giants in the Fortune 100, we will enable it to serve even more of the needs of enterprise and midmarket customers, thanks to our experience meeting the complex requirements of companies such as Johnson & Johnson, McDonalds, and Rubbermaid.
By the same token, Rackspace brings new capabilities to Datapipe customers, including managed services for enterprise applications, including those in the Oracle and SAP ecosystems; managed services for popular applications used in digital marketing, ecommerce, and web content management; Managed Google Cloud Platform; and additional capabilities in managing Microsoft, VMware, and OpenStack private clouds, including new services for Azure Stack and VMware Cloud on AWS.
While this acquisition will make Rackspace larger, it will retain the nimbleness, accessibility, and responsiveness that customers of both Rackspace and Datapipe cite when they explain why they chose us over the giant systems integrators and divisions of telephone companies. We expect our customers will embrace this transaction, as this combination creates the world’s leading provider of managed hosting and managed cloud solutions.
Rackspace expects to explore operating efficiencies through consolidation in areas such as overlapping office locations and marketing efforts. Datapipe employs some of the best technical talent in the world, and Rackspace looks forward to incorporating Datapipe employees into many critical roles at the combined company. Some executives of Datapipe will become senior leaders at Rackspace. During this transition, all of us will take special care to maintain and enhance the exceptional customer experience that has differentiated both Datapipe and Rackspace from our competitors.
Like most transactions of this size, ours will require multiple regulatory approvals in the U.S. and abroad. We expect it to close sometime in Q4 2017. We’ll keep you posted on our progress, and look forward to delivering the best service yet to the customers of both companies.