Rackspace has made a bold move to compete with major players in the cloud and servers market, acquiring Datapipe for an undisclosed amount, in a deal that has granted the San Antonio-based firm footing in markets like Russia, Brazil and China, as well as access to government clients. Rackspace will access the deal through an array of governmental clients such as the Department of Defense, Treasury, Energy, and Department of Veterans Affairs, as well as the UK Cabinet Office, Ministry of Justice, and Department of Transport.
The operations of Datapipe in the strict frame of the Russian sovereignty laws is also important, as it allows the new company to operate in three major developing markets. Thanks to the data centers and offices Datapipe holds in Russia, Brazil, and the managed services deal with the Alibaba Cloud, Rackspace is truly a global competitor on par with Amazon Web Services (AWS) and Google Cloud.
Also noteworthy: Datapipe has acquired in the recent past companies that support other cloud services like as Adapt, an AWS consulting partner, and they bought DualSpark an AWS assessment, automation, and migration company.
The new company, pending regulatory approval in the 4th Quarter, will have a real shot in the international market for Cloud Services. “With the acquisition of Datapipe, we’re very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe,” said to MarketWired Joe Eazor, CEO of Rackspace.
Datapipe expects to retain its global workforce and expand it into the new company. “We are very proud of the business we have built and the innovations and successful customer outcomes we have been recognized for, and the future of Datapipe will be even brighter in combination with Rackspace,” stated Robb Allen, founder and CEO of Datapipe.
Both companies are privately owned, with Rackspace the property of some funds of Apollo Global Management, LLC and other co-investors. Abry Partners, the majority owner of Datapipe, will receive equity in the new Rackspace. The total amount of the transactions and other details haven’t been revealed, but according to Rackspace, it has been their biggest purchase so far.