That Rackspace (NYSE:RAX) has pretty much given up on its fight against Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) is an old story. The company is now trying to position itself as a managed cloud services provider. But is this a model that can actually replace their cloud income, considering that their revenue growth is pivotal at this point? I plan to show how Rackspace has found an effective niche that takes advantage of a glaring gap in the cloud IaaS offerings of majors like Amazon Web Services and Microsoft.
Not exactly a reenactment of the David and Goliath story – this is more of a “what if” version where David runs between Goliath’s legs and makes friends with the entire army standing behind Goliath, thereby averting a war.