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Goldman's Big Play In the Cloud

To Goldman Sachs, the next big play in the cloud computing space is Rackspace Hosting. The firm recently upgraded the stock to 'buy' from 'hold.'

Cloud computing represents the biggest market opportunity in all of technology, Rackspace CEO Lanham Napier said Tuesday. It forever changes the way that businesses consumer computing, he continued. Rackspace is in the middle of the shift, which is only just beginning.

Rackspace's Cloud Share

Shelter Capital co-founder Brian Kelly has long liked Rackspace. He is a little concerned about the competition, though. Amazon.com , Google and Salesforce.com , for example, could easily take market share. But he thinks Rackspace has value proposition through its customer support.

Patty Edwards of Trutina Financial agreed, adding businesses might go to Rackspace because its services allow cost savings to a certain extent.

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Trader Disclosures for Oct. 18, 2011:

Weiss owns RIMM
Weiss owns KO
Weiss owns EUO

Ilczyszyn owns ZSL

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