Friday, May 10, 2013

Rackspace Growth Hiccup Causes Nervousness In Cloud Business

San Antonio-based Rackspace has made waves, and a name as a pioneer in the open cloud effort. However, the firm's recent lack of growth in its cloud business has spawned concern in the cloud computing business that competition and pricing cuts from competitors Amazon, Microsoft, and others threatens the open cloud. Rackspace announced its Q1 results this week, showing weaker than expected results. Rackspace has been one of the companies behind the Openstack, open cloud computing movement, which has sought to dislodge the dominance of Amazon Web Services in the cloud services arena.