Rackspace

What Rackspace does

Rackspace Technology is a US-headquartered, publicly traded (NASDAQ: RXT) managed cloud and enterprise AI infrastructure provider founded in 1998 in San Antonio, Texas. Following its 2020 IPO and concurrent majority investment by Apollo Global Management, the company is repositioning from a traditional multi-cloud managed services operator into the operator of a "governed enterprise AI stack" for regulated and mission-critical environments. Its core technology integrates AMD Instinct GPUs and EPYC CPUs with VMware Cloud Foundation as the control plane, Palantir Foundry/AIP for data and AI operations, Uniphore for agent-based workflows, and Rubrik for cyber recovery — assembled and run as a single accountable stack from governed private cloud to AI inference and agents in production. The product portfolio centers on Enterprise AI Cloud (Governed AI Private Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct), supported by Foundry for AI by Rackspace (FAIR), the RAIDER AI-driven security platform, and traditional offerings including Managed Cloud Operations, Cloud Migration and Modernization, Cloud Optimization, Data and Analytics, Cybersecurity and Resiliency, and Microsoft 365 services.

The company generates revenue primarily through managed services and recurring subscriptions, including dedicated and bare metal compute capacity, managed public cloud operations (AWS, Azure, Google Cloud), professional services for cloud migration and modernization, and emerging AI infrastructure subscriptions. Pricing varies by service tier and commitment, with Microsoft 365 plans ranging from $4.00 to $118.80 per user/month and AI compute priced as dedicated capacity with operational SLOs. Go-to-market combines direct enterprise field sales (healthcare, financial services, government, oil and gas, public utilities, manufacturing, retail, automotive, media and entertainment), a global partner program for mid-market, and a self-service Rackspace Marketplace for SMB.

Rackspace serves more than 20,000 customers (with some sources citing 80,000+ accounts) across 120+ countries, anchored by regulated-industry relationships such as Seattle Children's Hospital (Epic EHR hosting with 99.999% uptime), BT (UK sovereign cloud), Niterra (SAP on Google Cloud), J.Crew, Domino's UK, and CNWL NHS. The company operates 39 data centers globally with 2,200+ certified technical experts, 10,000+ technical certifications, and 600+ AI platform certifications. Following a June 2026 workforce realignment of ~15% to fund the AI pivot, the company carries $3.98B in total debt, a May 2028 maturity wall, FY26 revenue guidance of $2.6-2.7B, FY25 free cash flow of $90.6M, and a trailing-twelve-month net loss of $146M.

Name

Rackspace

Legal name

Rackspace US, Inc.

Website

https://rackspace.com

Company type

Public

Founded year

1998

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Rackspace Technology is a public, Apollo-backed managed cloud and governed enterprise AI infrastructure provider serving 20,000+ customers across 120+ countries, with primary focus on regulated industries including healthcare, financial services, and government.

Ownership category

akta.pro rank

Product category

Managed Cloud Services

NAICS

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (51821), Computer Systems Design and Related Services (54151)

SIC

Services-Computer Programming, Data Processing, Etc. (7370)

akta.pro primary industry

Cloud Managed Services (Operations, Monitoring, Patching) (BPAEACAF)

akta.pro secondary industries

Cloud Strategy, Assessment & Roadmap (BPAEACAA), Cloud DR, Backup & Business Continuity (BPAEACAJ), Cloud FinOps & SaaS Spend Management (BPAEAOAH)

Keywords

• Managed cloud services
• Enterprise AI infrastructure
• Multicloud managed services
• Sovereign cloud services
• Cloud migration services

Headquarters

HQ city

San Antonio

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Infrastructure, Technology or R&D, Operations, Marketing or Sales

Revenue model

1. Managed Cloud Services: Managed operations for public, private, and hybrid cloud environments including infrastructure management, monitoring, optimization, and ongoing support delivered as recurring managed services.
2. Professional Services: Cloud consulting, migration, modernization, and implementation services delivered by certified engineers and architects. Includes advisory, design, build, and deployment engagements.
3. Enterprise AI Cloud: Fully managed AI infrastructure including private/hybrid AI environments with AMD accelerators, inference engines, and inference-as-a-service offerings. Revenue from dedicated compute capacity and managed AI operations.
4. Bare Metal Compute: Dedicated high-performance AMD Instinct compute for demanding training and inference workloads requiring deterministic performance and direct hardware access.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels5 records

Core offering

Rackspace Technology operates the full enterprise AI stack for regulated and mission-critical environments, delivering managed cloud services, professional services, and dedicated AI infrastructure. Its Enterprise AI Cloud combines governed private cloud, AMD-based accelerated compute, an inference engine, and AI agent operations under a single accountable operator model. Supporting offerings include cloud migration and modernization, managed public cloud operations, data and analytics, cybersecurity and resiliency, and productivity services such as Microsoft 365 and email hosting.

Product overview

Rackspace Technology operates the full enterprise AI stack for regulated and mission-critical environments through a platform-plus-services architecture. The core offering centers on the Enterprise AI Cloud, which encompasses four integrated capabilities: Enterprise AI Cloud (managed private/hybrid AI environment), Enterprise Inference Engine (context-aware inference runtime), Inference as a Service (dedicated accelerated compute), and Bare Metal AMD Instinct (high-performance unmanaged compute). These are supported by the Governed AI Private Cloud, Forward Deployed Engineering, and Foundry for AI by Rackspace (FAIR). Beyond AI infrastructure, the portfolio includes Managed Cloud Operations, Cloud Migration & Modernization, Cloud Optimization, Data & Analytics, Cybersecurity & Resiliency, and application services including Microsoft 365, email productivity, and CRM/ERP implementations. The company serves regulated industries (healthcare, financial services, government, oil & gas, public utilities) and enterprise segments (manufacturing, retail, automotive, media & entertainment) across 120+ countries.

Differentiator

Problem solved

Functional benefit

Brands

• Foundry for AI by Rackspace (FAIR): AI platform accelerating adoption of responsible AI, building and operating AI solutions optimized for hybrid cloud architectures
• Fanatical Experience
• Rackspace Fabric
• Rackspace Elastic Engineering
• Optimizer+

Products and services

• Enterprise AI Cloud Fully managed private and hybrid AI environment combining accelerated compute, inference runtime, and AI agent operations under a single accountable operator for regulated, sovereign, and mission-critical enterprise environments.
• Governed AI Private Cloud Secure, regulated, and compliant private cloud foundation for harnessing AI in secure environments using the latest AI-optimized hardware, targeted at healthcare, financial services, and other regulated industries.
• Foundry for AI by Rackspace (FAIR) AI services platform accelerating adoption of responsible AI by building and operating AI solutions optimized for hybrid cloud architectures, taking enterprises from use-case discovery through governed, monitored, production deployment.
• RAIDER AI-driven platform for detection engineering and threat hunting that analyzes security data continuously and adapts detection logic to identify emerging threats, reducing alert fatigue across hybrid and multicloud environments.
• Rackspace Managed Cloud Managed cloud operations service providing ongoing management, optimization, and support for public, private, and hybrid cloud environments, including the Fanatical Experience support model with 24x7x365 expertise.
• Cloud Migration and Modernization Professional and managed services for migrating and modernizing enterprise workloads across AWS, Azure, Google Cloud, and private cloud environments, with demonstrated outcomes such as 50% faster SAP migrations.
• Cloud Optimization Services to optimize cloud environments for cost, performance, and efficiency across AWS, Azure, and Google Cloud, including Rackspace Optimizer+ for AWS cost management.
• Rackspace Elastic Engineering Platform engineering and automation services providing on-demand access to cloud expertise and engineering resources for platform development and operational support.
• Data and Analytics Data modernization services including data management, analytics, business intelligence, and AI/ML capabilities across cloud platforms.
• Cybersecurity and Resiliency Security services including threat detection, response, compliance, and governance for hybrid and multicloud environments, anchored by the RAIDER AI-driven threat-hunting platform.
• Rackspace Private Cloud Private cloud solutions powered by VMware Cloud Foundation, OpenStack, and other technologies providing secure, dedicated infrastructure for enterprise workloads including regulated and sovereign environments.
• Public Cloud Services Multi-cloud services across AWS, Microsoft Azure, and Google Cloud Platform including advisory, migration, and managed operations delivered by certified experts.
• Microsoft 365 Services Full suite of Microsoft 365 services including migration, licensing, security, compliance, and Copilot adoption with 24x7x365 expert support across Business Basic, Standard, Premium, and E7 tiers.
• ObjectRocket Database-as-a-Service Managed database-as-a-service platform supporting MongoDB, Elasticsearch, and Redis with 24x7x365 DBA and architect access, performance management, and proactive scaling.
• Rackspace Email Business email hosting service with anti-spam, anti-virus protection, and around-the-clock expert support targeted at small and mid-sized businesses.
• Bare Metal AMD Instinct Compute Dedicated, high-performance unmanaged bare metal AMD Instinct compute for demanding AI training and inference workloads requiring deterministic performance and direct hardware access.
• Microsoft 365 Copilot Integration Rackspace offering for Microsoft 365 Copilot readiness preflight checks, custom agent implementation, AI governance alignment, and Copilot onboarding, configuration, and adoption guidance.

Quantifiable outcome

• 99.999% uptime guaranteed for healthcare EHR workloads at Seattle Children's Hospital
• +4 more outcomes

Named customers16 records

Segments6 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration31 records

AI capability10 records

Feature4 records

Partnerships

Twelve partnerships are on record, tiered core and key.

• AMDcoreStrategic or Co-development Partner · 16 June 2026Definitive agreement signed June 16, 2026 for phased deployment of 30 MW of AMD-based compute across Rackspace global data centers from late 2026 through 2028. AMD becomes strategic technology partner at silicon layer of Rackspace's governed AI stack. Deployment incorporates AMD Instinct GPUs (MI355X, MI350P) and EPYC CPUs within integrated Enterprise AI Cloud architecture targeting regulated industries including healthcare. Both companies dedicate sales and marketing resources to jointly pursue enterprise customers.
• AMDcoreStrategic or Co-development Partner · 7 May 2026Memorandum of Understanding signed May 7, 2026 establishing framework for multi-year strategic partnership to create governed Enterprise AI Cloud for regulated industries and sovereign workloads. Collaboration integrates AMD Instinct GPUs and EPYC CPUs into fully managed governed infrastructure. MOU operationalized into definitive agreement on June 16, 2026.
• BTkeyStrategic or Co-development Partner · 30 April 2026BT Business launched UK's first end-to-end sovereign enterprise technology suite built on Rackspace Technology's UK data center infrastructure. Rackspace provides sovereign cloud platform with security-cleared operations teams. Sovereign AI capability developed in partnership with Nscale and NVIDIA.
• RubrikkeyStrategic or Co-development Partner · 17 March 2026Launch of UK Sovereign Cyber Recovery Cloud on March 17, 2026 combining Rubrik's data protection with Rackspace's sovereign cloud infrastructure and managed operations. Targets regulated enterprises requiring cyber resilience with data sovereignty in UK jurisdiction.
• UniphorecoreStrategic or Co-development Partner · 10 March 2026Strategic partnership announced March 10, 2026 to define new category of infrastructure-to-agents architecture accelerating enterprise AI adoption. Uniphore enables agent-based workflows integrated into Rackspace's governed Enterprise AI Cloud stack. Partnership positions both companies to address growing demand for sovereign AI infrastructure in regulated industries.
• PalantircoreStrategic or Co-development Partner · 18 February 2026Partnership to run Palantir Foundry and AIP in production with governed managed operations in Rackspace data centers. Rackspace combines Palantir platform capabilities with engineering execution to help enterprises bridge gap between AI experimentation and operational impact. Palantir supports governed data and AI operations within Rackspace's enterprise AI ecosystem.
• PalantircoreStrategic or Co-development PartnerPartnership combining Palantir's Foundry and AIP platforms with Rackspace's engineering execution capabilities. Palantir creates connected data layer enabling organizations to build production-ready AI use cases integrated into core workflows. Rackspace provides implementation, operational management, and ongoing engineering support.
• VMware (by Broadcom)coreTechnology or IntegrationVMware Cloud Foundation serves as control plane for Rackspace's Enterprise AI Cloud, unifying compute, storage, networking, and security across private, public, edge, and sovereign environments. Rackspace offers fully managed VMware services with enterprise-grade SLAs and operates one of the largest VMware Cloud Foundation as-a-service deployments. VMware Sovereign Cloud Partner status secured January 2026.
• Amazon Web ServicescoreTechnology or IntegrationAWS public cloud partner with over 3,000 certified experts. Rackspace provides managed AWS services including migration, optimization, and ongoing operations. Key customer segments include retail, technology, and enterprise workloads. AWS Sustainability Partner of the Year 2024.
• Microsoft AzurecoreTechnology or IntegrationAzure Expert MSP with more than 19 years of experience and more than 2,300 Microsoft certifications globally. Rackspace offers Fanatical Support for Azure workloads and managed services for Microsoft 365, Dynamics 365, and SharePoint. Gold Microsoft partner across multiple competencies including DevOps, Application Development, and Messaging.
• Google CloudkeyTechnology or IntegrationGoogle Cloud partner with over 1,000 certifications. Managed Google Cloud services including data, analytics, and enterprise workloads. Key customer case studies include Niterra SAP migration and OLIVER agency global operations.
• Dell TechnologieskeyTechnology or IntegrationStrategic alliance partner providing hardware for Rackspace's global data centers. Partnership emphasizes sustainability with over 40 global data centers outfitted with Dell hardware to lower energy demands and operating costs.

Scale indicators14 records

Recent moves8 records

Expansion highlights7 records

Market position

Strengths4 records

Competitive moat6 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/Rackspace
• Facebookfacebook.com/rackspace
• LinkedInlinkedin.com/company/rackspace-hosting

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries1 record

Funding overview

Funding rounds5 records

Investors7 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A18 records

Investments8 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rackspace