Rackspace Hosting, Inc. (RAX), a cloud computing company recently unveiled its new Private Cloud service, which is based on the OpenStack IaaS infrastructure, to handle a significant amount of work on any virtual machine manager and focus on enterprise production workloads. It will enable interaction and interoperability between both private and public clouds.
The Rackspace Private Cloud is capable of managing and connecting public and private clouds securely. Through this new offering from Rackspace, organizations will now be better equipped to handle hybrid cloud technology as it will now be significantly easier for them to manage and control their business applications securely. The latest release of Rackspace Private Cloud is now available in the U.S.
Backed by a distributed network and security construction designed for valuable application workloads and real-time analytics, the Rackspace Private Cloud model is designed to make the cloud-computing environment simpler, more flexible, efficient and cost effective.
Since Internet-based services are catching on and companies need to be able to offer the same grade of services at a high level of security across their customer bases, a platform enabling interoperability is of utmost importance. This is the area that Rackspace aims to focus on.
The Open Intercloud service will also take care of the security and quality of services to ensure the protection of user data. The service will integrate real-time data analytics and application process interfaces (APIs) for swift application improvement. We believe that such an offering would help Rackspace to build and support its cloud services network and expand its data centers.
Rackspace’s new offering powered by the OpenStack Private Cloud-as-a-Service platform will play a critical role in accelerating Rackspace customers’ shift to the cloud. It will help the companies to leverage the as-a-service operational benefits of the public cloud with the security and control offered by a private cloud.
Per Technavio, the global hybrid cloud market is forecast to grow at a compound annual growth rate of 30.2% during 2013-2018. According to Gartner, 50% of mainstream enterprises will adopt hybrid clouds by 2017-end. This presents a significant growth opportunity for Rackspace, going forward.
Rackspace leases server space and helps enterprises store and access data in the cloud. We believe that Rackspace’s focus on offering a hybrid cloud computing product will present a significant growth opportunity for the company, going forward.
However, competition in the Infrastructure-as-a-Service (IaaS) market is intense, particularly with players like Amazon (AMZN) that are willing to price very aggressively and behemoths like Microsoft (MSFT) and Google (GOOGL), which are determined to build a position in the fast-growing segment.
Currently, Rackspace has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment