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> Don’t expect Rackspace to ever fully recover from Friday’s meltdown. The 1.2 million-square-foot headquarters in Windcrest is now for sale. The remnants of th

by rob74 4y ago

> Don’t expect Rackspace to ever fully recover from Friday’s meltdown. The 1.2 million-square-foot headquarters in Windcrest is now for sale. The remnants of the company will soon decamp to less than 10% of that space, in a smaller office building near Stone Oak. A company stock that soared to about $80 a share in early 2013 fell from about $5 a share Dec. 2, when the meltdown hit the wires, to $3.23 as of Friday’s market close. If anything the title is an understatement - they might just as well have used "The Death of Rackspace" instead...

alt227 4y ago
Rackspace have many divisions and revenue streams, Exchange being a small part of their overall business. They have many thousands of customers still using their other products that are completely unaware of whats going on in Exchange right now. I mean, it didnt even make HN front page! Rackspace will not die from this, they will plod along as a reseller for other clouds for many years to come.
- gjvc 4y ago
  Rackspace will not die from this, they will plod along as a reseller for other clouds for many years to come. Equinix will pick them up for pennies on the dollar.
- shkkmo 4y ago
  > I mean, it didnt even make HN front page! There was an article on the frontpage about the outage when it was first happening. Edit: This is the one I saw on the first page https://news.ycombinator.com/item?id=33839941 https://news.ycombinator.com/item?id=33839941
- acdha 4y ago
  Rackspace does have other revenue streams, and this will be a wakeup call for their remaining customers because there's no reason to expect that a gross management failure like this will be isolated to one unit. This did make the HN front page – that's where I learned of it – but it wasn't really a surprise to most of us. This is what private equity does and it's what was predicted back in 2016. I didn't see anyone with high expectations for the deal, but I did hear about several people migrating away as soon as the Apollo news broke.
- lowbloodsugar 4y ago
  Er, well this is the second time it’s hit the front page so

by rob74 4y ago

alt227 4y ago

Rackspace have many divisions and revenue streams, Exchange being a small part of their overall business. They have many thousands of customers still using their other products that are completely unaware of whats going on in Exchange right now. I mean, it didnt even make HN front page! Rackspace will not die from this, they will plod along as a reseller for other clouds for many years to come.

gjvc 4y ago
Rackspace will not die from this, they will plod along as a reseller for other clouds for many years to come. Equinix will pick them up for pennies on the dollar.
shkkmo 4y ago
> I mean, it didnt even make HN front page! There was an article on the frontpage about the outage when it was first happening. Edit: This is the one I saw on the first page https://news.ycombinator.com/item?id=33839941 https://news.ycombinator.com/item?id=33839941
acdha 4y ago
Rackspace does have other revenue streams, and this will be a wakeup call for their remaining customers because there's no reason to expect that a gross management failure like this will be isolated to one unit. This did make the HN front page – that's where I learned of it – but it wasn't really a surprise to most of us. This is what private equity does and it's what was predicted back in 2016. I didn't see anyone with high expectations for the deal, but I did hear about several people migrating away as soon as the Apollo news broke.
lowbloodsugar 4y ago
Er, well this is the second time it’s hit the front page so