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Maybe they are just trying to cash out. With cloud computing entering mainstream, and Amazon, Microsoft, Google and probably Sun start investing a lot of money
by ardit33 19y ago
Maybe they are just trying to cash out. With cloud computing entering mainstream, and Amazon, Microsoft, Google and probably Sun start investing a lot of money, the space will be very competitive and capital intensive.
I don't think it will be a great stock to have. The margins will only keep shrinking.
- SwellJoe 19y agoIt's amusing that you believe that a top five (probably #2) hosting provider that has had a competent cloud computing initiative for years (Mosso) is threatened by cloud computing entering the mainstream. I'm not saying hosting isn't going to get more competitive...I know that it is. But RackSpace has always managed to be among the fastest growing, most reliable, and highest margin, hosting providers in the industry. I think you underestimate the growth that will continue to happen in hosting for the foreseeable future, and the strength of RackSpace in that industry. Most of our customers (who are hosting providers) view RackSpace as a very serious competitor to be taken seriously on nearly every front. And I'm not saying nice things about RackSpace just because we'd like to sell them some software. They really have built an impressive business.