4 ms·

I wouldn't buy into this IPO. The problem is rackspace doesn't really have much of a moat and the space is highly competitive.

• deleted 6y ago
  [deleted]
• psds2 6y ago
  The space has a moat though - it takes a huge investment and long time to become competitive in this low margin space. Rackspace has shown themselves to be a market leader within this moat.
  • discodave 6y ago
    Their capex looks to be ~$2-300MM. That's approximately 1% of what AWS spends. https://www.platformonomics.com/2020/02/follow-the-capex-cloud-table-stakes-2019-edition/ https://www.platformonomics.com/2020/02/follow-the-capex-clo...
  • jgalt212 6y ago
    True, containers are all the rage, but it is quite arduous to move a database from one cloud provider to another.