Rackspace Hosting, Inc. (NYSE:RAX) Teams Up With Microsoft To Spur Cloud Business Growth


Dallas, Texas 07/14/2015 (Financialstrend) – Rackspace Hosting, Inc. (NYSE:RAX) has moved to ensure that its customers have one of the finest experience on the cloud after teaming up with Microsoft Corporation (NASDAQ:MSFT) to bring its trademark fanatical support to Windows Azure service. The partnership allows customers to enjoy an accelerated deployment of Azure as well as minimized costs.

Services on Offer

The pact should help in the unmasking of some of the technology headaches that businesses and people face when shifting operations from on-premises to cloud computing’s services.  Rackspace Hosting, Inc. (NYSE:RAX) top tier support and customer service should help Microsoft in its push to catch up with Amazon that continues to call the shots in the cloud business.

 Rackspace is to make available applications as well as infrastructure architecture guidance, needed to use Azure. The integration allows the company to offer its hybrid cloud solution that combines Rackspace Hosting, Inc. (NYSE:RAX) private cloud powered by Microsoft’s Cloud Platform and Azure. The agreement with Microsoft marks the first major achievement by Rackspace to support public cloud service that is not its own

The partnership allows people in need of cloud service to pay Rackspace Hosting, Inc. (NYSE:RAX) to be able to set up, manage and support all technology from Windows Azure. The company will still be able to operate its own Web-hosting and cloud services while allowing customers to mix IT services between the two companies.

Revenue Decline Concerns

The support of Windows Azure is part of Rackspace push to generate more money from its support organization.  Rackspace has seen its revenue growth come under pressure over the past two years an effect that has hit its stock hard at the back of a disappointing second quarter that, saw sales fall short of analyst estimates

The deal is also part of a number of alliances that Microsoft CEO, Satya Nadella, has struck with other companies with a view to making it easy to use Microsoft services. The partnership positions Microsoft at a strategic position to grow its market for Azure.