Rackspace Technology provides managed cloud services with a focus on multicloud solutions. It helps businesses adopt and transform their IT infrastructure across multiple cloud platforms (including AWS, Google Cloud, and Microsoft Azure) by handling cloud management, data services, and security. Its offerings include Rackspace Elastic Engineering, which gives on-demand engineering and support to help clients innovate and scale operations, with a particular emphasis on VMware environments. The company earns through subscription-based cloud management, consulting, and programs like Referral and Private Equity Partners. Unlike firms that specialize in a single cloud or DIY tooling, Rackspace combines multicloud management, on-demand engineering, data modernization, and security across multiple clouds to simplify IT operations for customers. Its goal is to enable organizations to optimize and secure their cloud environments so they can focus on their core business activities.
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Industries
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
San Antonio, TX
Founded
1998
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Total Funding
$1.3B
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Funded Over
6 Rounds
Rackspace Technology raised its 2026 revenue forecast to $2.51 billion–$2.56 billion, up from $2.45 billion–$2.55 billion. It kept its profit outlook unchanged. Third-quarter revenue fell 9% to $609 million as Public Cloud revenue dropped 17.2%, while Private Cloud grew 4.2%. Adjusted EBITDA rose 8.5% to $75 million. The company signed AI infrastructure deals with Together AI and Blacksmith worth an anticipated $610 million in contract value, with deployments expected in 2027. It targets 20 to 22 megawatts of AI compute capacity by the end of 2027, though financing, equipment delivery and data centre readiness could delay plans. A group led by Voss Capital agreed to invest $66 million.
Rackspace Technology raised about $66 million in a private placement of 24,000,000 common shares, the San Antonio-based cloud services company disclosed in a Form 8-K filed November 10, 2026. Voss Capital put in roughly $50 million for 18,181,816 shares. Other purchasers paid about $16 million for 5,818,181 shares, an implied price of roughly $2.75 per share. No underwriting fees were paid. Rackspace plans to use the money for general corporate purposes, including working capital, capital expenditures, and growth capital such as GPU-related initiatives. The shares are restricted securities and cannot be resold without registration or an exemption.
UK's Defra plans £4.8m data center contract renewal with Atos. While Buckinghamshire Healthcare NHS Trust awards Rackspace a colocation deal November 09, 2026 The UK's Department for Environment, Food and Rural Affairs (Defra) is planning to renew its colocation agreement with Atos, and an NHS trust has awarded a data center contract to Rackspace. In a pipeline notice, Defra has stated that a new colocation agreement with Atos for its Andover data center is "required in support [of] Defra's future hosting and support contract." The contract is valued at £4.8 million ($6.44m), including VAT, and will begin on December 4, 2026, running for three years with a possible one-year extension. Under the agreement, Atos will offer rack space, power, and cooling infrastructure to Defra. Defra relies on multiple suppliers for its IT infrastructure. In August 2025, Defra put out a tender for "future hosting and storage services" valued at £294.6 million ($396.42m). The winner(s) of the award would provide "digital services" to six organizations within Defra: Authority; Environment Agency; Rural Payments Agency; Animal and Plant Health Agency; Natural England; and Marine Management Organization; and would include data center facilities management, cloud hosting services, Infrastructure as a Service, Platform as a Service, and Software as a Service. The government department also signed a £20.8m (~$25m) deal with Amazon Web Services (AWS) in 2023. The department also has a £23m ($30.87m) contract with AWS from 2025. Atos is a French technology company. Atos' Andover data center, according to DataCenterMap, is located at Shepherds Spring Lane in Andover and spans 58,000 sq ft. The facility is leased to Atos, and according to a report from Computer Weekly, is a "List X facility," meaning it is approved to hold UK government protectively marked information marked as 'Secret' or above, Outside of Defra, Atos has contracts with the MoD, HMRC, the Home Office, and the state-owned National Savings and Investment Bank. Andover is located in Hampshire, located southwest of London. Meanwhile, the Buckinghamshire Health NHS Trust has awarded a contract to Rackspace for data center services. In a contract award notice, the NHS trust notes that the contract is valued at £13.17m ($17.68m) excluding VAT, and includes a "virtual cloud service." The contract was awarded without a call for competition as it falls outside the scope of application of the regulations. Further details have not been provided. More in government & military.
HGS selects Rackspace Technology for private AI infrastructure powered by AMD. October 29, 2026 HGS becomes first announced GSI customer of Rackspace's Managed Compute and Inference Platform, powered by AMD Multi-year infrastructure and services agreement adds to Rackspace's Enterprise AI growth vector Deployment gives HGS greater control over AI compute, while expanding its ability to deliver private and sovereign-ready cloud solutions to enterprise customers SAN ANTONIO, TX - October 29, 2026 - Rackspace Technology(R)(NASDAQ: RXT), a global enterprise AI infrastructure and solutions provider, today announced that Hinduja Global Solutions (HGS) (listed on BSE & NSE), an intelligent experiences partner, has selected Rackspace to provide the private cloud, AI compute infrastructure, powered by AMD, supporting its strategy to deliver AI-powered intelligent experiences for enterprise customers. The 3-year deployment will begin in December 2026 and will give HGS greater control over AI economics, security and compute while expanding the solutions it can offer enterprise customers in the US and UK. HGS is part of the multi-billion-dollar Hinduja Group, one of the world's largest diversified business groups. The deal also marks the first announced GSI customer deployment under Rackspace's multiyear AMD compute agreement. As AI reshapes the business process services industry, providers are moving beyond traditional outsourcing models to deliver more technology and AI-enabled services. That evolution requires infrastructure capable of supporting AI alongside existing business-critical workloads, with dedicated compute, operational expertise, deployment flexibility and the performance and control enterprises require. "AI is forcing a fundamental reset of the business services industry," said Phil Fersht, CEO and Chief Analyst, HFS Research. "Competitive advantage will increasingly come from providers that can combine deep process expertise with the AI infrastructure, compute and operational capabilities needed to deliver at scale. The HGS and Rackspace relationship is a strong example of how services firms can bring together domain expertise and technology execution to build the foundation for the next generation of AI-enabled services." "As HGS expands its AI capabilities, we recognize that production AI requires us to think differently about the infrastructure beneath our applications," said Venkatesh Korla, Global Chief Executive Officer of HGS. "Working with Rackspace gives us control over the cost, security and performance of our AI infrastructure, and adds private and sovereign-ready cloud capabilities that broaden what we can deliver to customers." The multi-year Rackspace and AMD agreement covers an initial 30 MW footprint of dedicated AMD compute across Rackspace's global data centers from late 2026 through 2028. The agreement established AMD as a strategic technology partner for the silicon layer of Rackspace's governed enterprise AI stack, expanding the compute options available to customers as their AI requirements evolve. The HGS selection and deployment demonstrate how that investment translates into infrastructure for enterprise AI workloads. "AI is pushing enterprises to reconsider where critical workloads run and how much control they retain over their infrastructure, data and economics," said Gajen Kandiah, Chief Executive Officer of Rackspace Technology. "HGS shows what production AI requires: dedicated compute, private cloud and managed operations working alongside public cloud. We built our governed enterprise AI stack for exactly this, and the AMD agreement gives customers a clear path from capacity to production." By adding Rackspace's private cloud, data center, and AI infrastructure to its technology and managed services capabilities, HGS is expanding its offerings stack for enterprise customers. The infrastructure will help HGS bring secure, real-time customer context into frontline interactions and digital channels, enabling more personalized and responsive experiences at critical moments. It also strengthens HGS' ability to support organizations looking for greater control over their data, AI environments, and regulatory requirements. The deployment reflects continued investment by Rackspace in a governed enterprise AI stack, bringing together dedicated AI compute, private cloud infrastructure and managed operations to support enterprise AI at production scale. The deployment also demonstrates the role private cloud and dedicated AI infrastructure can play as technology and business services providers evolve their operating models for an AI-driven market. HGS is a global provider of technology, AI, and business services that helps organizations transform with confidence. Rooted in decades of operational excellence, HGS combines automation, analytics, artificial intelligence, and deep domain expertise to deliver Intelligent Experiences across the customer lifecycle, from digital customer care to back-office operations, human resources outsourcing, and advanced contact center solutions. Building on its strong foundation in CX and business process management, Rackspace Technology, Inc. is expanding into new related areas by integrating technology, data, and operational insight to deliver real business results. Its Realized AI methodology brings discipline, speed, and certainty to transformation, delivering right-sized, practical solutions that work here and now, including a 90-day Proof of Value commitment that validates measurable impact in live environments before scaling. HGS also operates NXTDIGITAL (www.nxtdigital.in), India's premier digital media distribution company, providing satellite, digital cable, and broadband services to over 4.8 million customers across 1,500 cities and towns. Part of the multi-billion-dollar Hinduja Group, HGS takes a "globally local" approach with ~16,710 employees across 10 countries and 23 delivery centers, supporting some of the world's most recognized brands. About Rackspace Technology Rackspace Technology(R)(NASDAQ: RXT) is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable. Learn more at www.rackspace.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the expected benefits, timing, scope and scale of the agreement between Rackspace Technology and HGS and the broader Rackspace-AMD AI Compute agreement, anticipated customer demand for AI infrastructure, and Rackspace's business strategy and future operating results. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including those described in the "Risk Factors" section of Rackspace Technology's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC. Rackspace Technology undertakes no obligation to update any forward-looking statements, except as required by law. Media Contact: Gracie LePere Thanuja B M Public relations. Industry Analyst relations. Recent press releases. October 29, 2026 September 9, 2026 August 25, 2026 August 13, 2026 August 6, 2026
Hexaware Named a Leader in three quadrants and a Rising Star in the ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. Quadrant Report. Information Services Group (ISG), a global AI-centered technology research and advisory firm, has named Hexaware a Leader in three quadrants of its ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. report. The three quadrants are AWS Professional Services, AWS Data Lifecycle Management Services, and AI-Powered Business Transformation with AWS. Accenture, Capgemini, Cognizant, Deloitte, DXC Technology, HCLTech, Infosys, LTM, NTT DATA, Persistent Systems, PwC, Rackspace Technology, TCS, and Wipro were also named Leaders in these three quadrants. Hexaware was also recognized as a Rising Star in AWS Managed Services, alongside Coforge. ISG finds that cloud migration is no longer the end goal for U.S. enterprises on AWS. Organizations now expect their AWS programs to move AI out of pilots and into production with measurable results. That expectation is pushing buyers and providers alike to prioritize autonomous agents, well-governed data, self-managing cloud operations, and tighter control over AI spending. Leader - AWS Professional Services ISG points to Hexaware's use of AI and automation to speed up AWS delivery. The report cites Amaze(R), Hexaware's AI-powered modernization platform with more than 20 agents. It also cites an AI-powered internal development platform that automates provisioning and governance checks. Together, these help clients modernize faster, with stronger controls and quicker returns on their cloud investments. Leader - AWS Data Lifecycle Management Services ISG credits Hexaware with helping enterprises prepare their data for AI. Its metadata-driven frameworks, real-time streaming architectures, and automated retention and archival policies give organizations better control and visibility across the data lifecycle. As a result, they can get more out of data-led transformation. Leader - AI-Powered Business Transformation with AWS According to ISG, Hexaware grounds its AI work on AWS in measurable business results and solutions built to scale. Hexaware draws on Amazon Bedrock, SageMaker, and its own assets such as Amaze(R) AI Agents and Agentverse(TM). With these, it helps clients in sectors like financial services and healthcare modernize how they operate, with responsible AI controls built in. Rising Star - AWS Managed Services Hexaware earns Rising Star status for its Cognitive CloudOps approach. This approach brings AI-assisted operations, FinOps-driven cost governance, security, and automation together in one model. ISG sees it as a well-rounded managed services offering that keeps AWS environments running reliably, tunes them for performance, and keeps improving them over time. Hexaware Named a Leader in AWS Professional Services in the ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. Quadrant Study "Hexaware combines AI-enabled cloud transformation, agentic modernization through Amaze(R) and AWS consulting expertise to accelerate large-scale migration, modernization and cloud-native engineering outcomes." - Sameen Mohammed Siddique, Lead Analyst, ISG Hexaware Named a Leader in AWS Data Lifecycle Management Services in the ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. Quadrant Study "Hexaware combines AI-ready data platforms, governance-led modernization and intelligent automation to help enterprises accelerate data transformation while improving scalability, usability and business value." - Dr. Tapati Bandopadhyay, Lead Analyst and Research Partner, ISG Hexaware Named a Leader in AI-Powered Business Transformation with AWS in the ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. Quadrant Study "Hexaware translates emerging AWS AI capabilities into practical business solutions that enhance operational efficiency, agility and decision-making." - Dr. Tapati Bandopadhyay, Lead Analyst and Research Partner, ISG Hexaware Named a Rising Star in AWS Managed Services in the ISG Provider Lens(R) AWS Ecosystem Partners 2026 U.S. Quadrant Report "Hexaware combines AI-assisted SRE, observability, FinOps and automation-led operations to deliver through a structured AWS Managed Services model focused on reliability, governance and operational efficiency." - Sameen Mohammed Siddique, Lead Analyst, ISG
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Industries
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
San Antonio, TX
Founded
1998
Find jobs on Simplify and start your career today
Don't see your dream role? Check out thousands of other roles on Simplify.Browse all jobs