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Rackspace Goes Shopping, Set to Acquire Datapipe

M&A

**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from July.**

As a private company since last year, Rackspace continues to transform. The latest news comes with the announcement of an agreement to buy Datapipe, an MSP for public, private and hybrid cloud platforms — and competitor. No financial information was available.

When the deal closes – one Rackspace calls its biggest deal ever – the company will have new capabilities, which will benefit both customers and partners.

Datapipe's Robb Allen

Datapipe’s Robb Allen

“Our customers are looking for help as they spread their applications across public and private clouds, managed hosting, and colocation, depending on the blend of performance, agility, control, security, and cost-efficiency they’re seeking,” said Joe Eazor, CEO of Rackspace. “With the acquisition of Datapipe, we’re very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe,” he added.

New Jersey-based Datapipe has 29 data centers in nine countries and 825 employees who work in 11 offices in the U.S., U.K., and Asia.

“Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform and Microsoft Azure. They also need help navigating the use of private clouds, managed hosting and colocation solutions, often in combination, as they move critical applications out of their corporate data centers. The combination of complementary capabilities and resources from both of our companies will create the world’s leading provider of multi-cloud managed services,” said Robb Allen, founder and CEO of Datapipe, in business since 2000.

The acquisition of Datapipe will add new capabilities to Rackspace:

  • Experience serving public-sector customers, including the U.S. Departments of Defense, Energy and Treasury, and the U.K. Cabinet Office, Ministry of Justice and Department of Transport. Datapipe has FedRAMP and FISMA certifications.
  • Data centers and offices in key markets, including the West Coast of the U.S.; Brazil; and mainland China and Russia, where Rackspace today has little or no presence – giving the company the capability to serve multinational customers.
  • Software and tooling that will help us 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 services on the Alibaba Cloud (in China).
  • Deep experience in managed multiple major workloads for large enterprises.

At the same time, Rackspace brings new capabilities to Datapipe customers:

  • Managed services for enterprise applications, including those in the Oracle and SAP ecosystems, recently added with the acquisition of TriCore Solutions.
  • Managed services for applications used in digital marketing, ecommerce and web content management. -Managed Google Cloud Platform.
  • Deep experience in Microsoft, VMware and OpenStack private clouds, including new service offerings for Azure Stack and VMware Cloud on AWS.

Rackspace expects the deal to close in the fourth quarter, pending regulatory approvals.


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