Philbert Shih on Rackspace strategic evaluations

• May 15, 2014

Source: San Antonio Express News

Rackspace weighing its options

Having not hired a new CEO, this could be a sign that they’re transitioning and evaluating where they want to take the company,” said Phil Shih, managing director at Structured Research. “I’ve never thought of Rackspace as a reactive company. The timing might raise a few eyebrows, but every company goes through transition phases and that’s what’s happening right now.”

Rackspace could be following in the footsteps of companies that have created partnerships to pool their resources.
For example, telecommunications giant Verizon and Equinix partnered to launch virtual networks across more than a dozen data centers, with access to hundreds of cloud-service providers.

“There are a lot of partnerships happening in the market to increase the target sales. Instead of going after the market individually, cloud companies and service providers are trying to partner,” Shih said. “Everybody’s trying to reinvent or transform themselves.”