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Rackspace Adds Enterprise Colocation Services to Hosting Menu

Data Center

… a sector crowded with large and small firms, many of which focus on market- and industry-specific solutions. Rackspace’s experience in hybrid, private [and] public clouds should help the company differentiate itself, but competition is still likely to be fierce.”

Jay McBain, a global channels analyst with Forrester, agrees.

“This is a very busy market,” he said. “Forrester recognizes 33 leaders in this space with 17 of them offering managed services wrapped around their products.”

For Rackspace in particular, “channel partners that have customers with burgeoning capacity demands, colocation services can provide a flexible solution for hosting growing infrastructure as well as play a strategic role in cloud adoption and integration,” McBain said. “Rackspace has a large and loyal channel base that will be interested in this, and they definitely have the technical skills and hosting capacity to make this happen.”

McBain said he’s not surprised that Rackspace is entering this market even at this late date.

“It is an adjacent opportunity that is growing by double-digits,” he said. “I am surprised they weren’t there already.”

451 Research expects the colocation market to grow at 12 percent per year through 2020.

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