Report: IBM Considers Rackspace Acquisition

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Both EMC and IBM are said to covet entree into the white-hot cloud hosting market, though neither company is anxious to build out their own, homegrown offerings.

Move over, SoftLayer: IBM Corp. may have bigger fish to fry.

According to published reports, Big Blue, which last week was said to be in the running along with EMC Corp. for a potential buyout of the cloud services company, could also have its eye on Rackspace Hosting. Inc.

Related articles

Quoting an anonymous former IBM executive with knowledge of the matter, GigaOm on Sunday reported that IBM over the past month has taken a serious look at fellow OpenStack Foundation member Rackspace.

IBM remains interested in SoftLayer Technologies Inc. as well, the source said. EMC, however, is rumored to be growing less interested in the Dallas-based cloud applications hosting specialist. Insiders have kicked around a suggested purchase price of $2 billion for SoftLayer.

Rackspace, meanwhile, with a market cap of $7.2 billion and revenues of $1.3 billion last year, would presumably cost much more. The buyout rumors pushed Rackspace shares up 4.5 percent $53.60 on Monday.

Both EMC and IBM are said to covet entree into the white-hot cloud hosting market, though neither company is anxious to build out their own, homegrown offerings.

“IBM does not want to fund its own development because past history shows we’re not very good at it,” the source told GigaOm. “IBM’s become a holding company of sorts, buying assets, integrating them and reselling them as an IBM brand.”

EMC is at least tangentially connected to such services already through the launch last week of a new public cloud service by its subsidiary, VMware Inc. VMware’s isn’t part of the OpenStack cloud standards initiative, however, relying instead on its proprietary vCloud Suite technology. EMC and VMware also recently unveiled details of a joint venture in cloud computing, dubbed Pivotal, to be headed by former VMware CEO Paul Maritz.

The sale of either SoftLayer or Rackspace to a large IT vendor and channel stalwart could have broad implications for the channel.  And the persistent M&A rumors surrounding both shows how important having hosted infrastructure is to the growth and development of the technology market and could demonstrate how disruptive cloud consolidation could be to the channel and general market.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
mock3-0913

Channel millennials to learn from older peers with new CompTIA initiative

Initiative may help with 2015 emerging threat of millennial expectations

NY traffic lights

Gigamon launches partner program

Traffic visibility firm includes pre- and post-sales training certifications in new partner program

Sales online and in the shops

Black Friday wearable tech uptake splits industry

Shoppers may have snapped up a bargain wearable device on Friday, but just how much impact will this have when they choose to wear it to work today?

Backbytes - a happy computer

Perk up! HP opens up former direct-only perks to the channel

Latest ServiceOne partner program released as Q4 results disappoint

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
ken-shaw-infrascale

Vendor Q&A Series: Ken Shaw Jr., Infrascale

The latest channel exec to sit in the Channelnomics hotseat is Infrascale's CEO

businessman-walking-rope-outdoor-balance

MSP market saturation may lead to smaller players being dumped by vendors

Smaller players need to ensure that they don't fall prey to solution provider consolidation by vendors

Questions

Windows 10 service model raises enterprise, channel questions

Microsoft is banking on the fact that its next OS will be an improvement over prior iterations, but will the product’s sales model be as well received as the product itself?

Handshake in London

Microsoft Big Data acquisition shows willingness to embrace open platforms

The software giant embraces yet another open-source tool in R and stakes its claim in the analytics arena