Rackspace Enters the Data Center Colocation Service

Mike Allen
June 14, 2018

Recently, Rackspace launched a data colocation business in 10 locations around the world. Customers will be able to deploy their own hardware in Rackspace data centers. These colocation facilities will offer customers power, space and network connectivity.

Rackspace managed to launch its colocation business by leveraging its resilient network, critical infrastructure and on-site support services. Consequently, the company will deliver true transformation as a service in matters security, applications, infrastructure, and data.

As a carrier-neutral colocation service provider, Rackspace offers services in American cities such as Dallas, Chicago, Northern New Jersey, Kansas City, San Jose and Northern Virginia. Outside the US, the company serves London, Hong Kong, Sydney, and Moscow.

Rackspace is yet to reveal the power and space it offers customers in its different colocation facilities around the world.

Why Rackspace’s Offering is Unique

Rackspace’s colocation service is unique in that it helps clients fill the gap between running applications in their internal data centers and outsourcing technology to cloud providers and managed hosting. 

Colocation gives businesses the opportunity to solve their problems without having to decommission their infrastructure. Also, rather than refactor applications to fit the modern environment, customers only have to shift their hardware to Rackspace data centers.

Primarily, Rackspace focuses on cloud and managed hosting. The Texas-based company expects customers to move their on-site systems to its facilities. Afterward, customers will be able to use services offered by Rackspace to catapult their businesses to the next level.

If successful, Rackspace will have a long-term business with its customers. Some of the services Rackspace offers include migrating and managing the public cloud, private cloud, bare metal platforms and managed hosting.

Where Else to Access Rackspace Services

Rackspace services are not exclusive to or confined to Rackspace facilities. Rackspace partnered with Switch in April. In the deal, Rackspace will package its services together with colocation services offered by Switch data centers around the US.

Why Businesses Would Consider Using Rackspace’s Services

Understanding the psyche of entrepreneurs is vital to seeing the rationale behind Rackspace’s business model.

Entrepreneurs are always looking for ways to reduce costs and direct more attention to their business. As such, the demand for outsourcing data center management tasks to colocation service providers is always on the rise.

Organizations that hire Rackspace for their colocation needs will reduce their total cost of ownership, enhance scalability and fortify their disaster recovery capacity. Not only will this reduce application latency, but also help businesses meet compliance and security needs.

Are there non-financial reasons why businesses would want to use colocation facilities? Definitely! Businesses can achieve geographic diversity, augment disaster recovery mechanisms, and create strategic low-latency connections with cloud service providers.

Businesses also use colocation facilities to connect their enterprise network to the public cloud using private network links. Colocation facilities, such as Rackspace, offer businesses a strategic advantage. Rackspace agrees with 451 Research that the colocation market will have an annual growth rate of 12% from 2018 to 2020.

Rackspace’s History

Rackspace started its life as a hosting company. Over the years, it has evolved into a leading managed cloud provider. Currently, Rackspace helps clients to set up and manage cloud infrastructure on different platforms, including Microsoft Azure, AWS, and Google Cloud.

After its first IPO, Rackspace operated as a public company for eight years. In 2016, it was acquired by Apollo Global Management. At the beginning of 2017, there were reports that Apollo was contemplating on issuing IPO for Rackspace.



Mike Allen

Recently, Rackspace launched a data colocation business in 10 locations around the world. Customers will be able to deploy their own hardware in Rackspace data centers.