In the cloud-computing market, Google and Amazon.com have been embroiled in a brutal pricing war. So when news broke in May that smaller rival Rackspace had hired Morgan Stanley to explore strategic options amid such stiff competition, Rackspace’s president, Taylor Rhodes, expected a six-month parade of discussions with customers concerned about his company's future.
Instead, Rackspace has been signing up clients at an accelerated pace even as its status remains unresolved, Rhodes said. The company’s pitch has long been that the raw computing power and storage in the cloud is becoming commoditized and that there's money to be made selling services and support on top of it to the many businesses that need the help.
Rhodes says that the infrastructure piece is only 20 percent to 30 percent of the market Rackspace is going after.
“We’ll let Amazon and Google fight for that,” Rhodes, who was promoted to president in January, said in an interview on Monday at a Rackspace customer conference in San Francisco. “Every cloud has to be managed.”