Earnings, uptake in value-add, private results, M&A, integration, appointments
A busy week saw more from earnings season, momentum in new services, data points on private company growth, and while there was limited M&A activity, we took a closer look at the impact of market separation on M&A and get an update on a notable recent transaction.
Rackspace remains a bellwether company and its 1Q23 results were weak as it continues to transition from legacy to next-generation services. Rackspace changed the way it reports, with public cloud and more traditional managed infrastructure services assigned to distinct revenue buckets to reflect the company’s new structure.
The restructuring reflects how the sector continues to change and evolve and we take a closer look at this dynamic and how it may impact M&A activity. Colocation and bare metal are ripe to go down this path. Managed public cloud is an area of the market seeing ongoing M&A and Cox provided a general update on where things are going with the Logicworks integration.
On the private company side, we got some data points from managed cloud provider Lemongrass as it continues to push through the current environment. While the sector has shown clear signs of slowing, new services like Cloudflare’s R2 cloud storage offering continue to gain momentum.
Finally, there were some notable changes in executive circles. Equinix has a new MD for the UK, ClearDATA hired a new CTO and CyrusOne brought in a new chief investment officer.
or