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The answer sits on the 4th page: We have increased the percentage of our revenue from segments which we believe benefit from attractive growth dynamics. In 201
by old-gregg 6y ago
The answer sits on the 4th page:
We have increased the percentage of our revenue from segments which we believe benefit from attractive growth dynamics. In 2019, over 85% of our revenues came from our Multicloud Services and Apps & Cross Platform segments, which we refer to as our “Core Segments”. In contrast, in the twelve months ended September 30, 2016, less than 10% of our revenue came from our Cloud Office and Managed Cloud Services service offerings.
Basically Rackspace went from being a hosting company with "fanatical support" to someone who manages your AWS account and your cloud apps. They still offer their traditional bare metal servers, and they have their cloud, but that's not where the growth is.
- otoburb 6y agoLooks like gross profit margins decreased in aggregate by almost 4% in both "growth" categories of their Core Revenue (page 79). Doesn't look good for future margin expansion opportunities.