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
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

Two men shake hands

Public offering: Ingram Micro and VMWare release new partner program

Public sector partners to benefit at no cost

learn-chalkboard

Watch and learn: Brocade EMEA merge watched carefully by U.S. arm

Benefits of channel and OEM business merge apparent in EMEA and APAC

Clouds jigsaw

More to channel life than cloud - Microsoft

Firm's UK channel lead says hybrid solutions may be the answer for many

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
employee-challenges

Challenge accepted: Lenovo moving to single PC-server channel post x86 takeover

Lenovo aims to capitalize on the x86 server products it acquired from IBM by consolidating product sales under one channel. It sounds good in theory, but Lenovo has more challenges in its server ambitions than its channel structure

Jarrett Miller

Vendor Q&A Series: Jarrett Miller, Bromium

The latest channel exec to sit in the Channelnomics hotseat is Bromium's VP of global channel sales

John Schweizer - DataStax

Vendor Q&A Series: John Schweitzer, DataStax

Our latest exec to sit in the Channelnomics hotseat is John Schweitzer, executive vice president, worldwide field operations at DataStax

digital-hugging

CA embraces channel to build Application Economy

CA is shaking off its record of channel ambivalence to embrace partners’ capabilities to reach and service customers’ evolving and dynamic needs in the unfolding ‘Application Economy’