‘Confident in our strategy’: Rackspace CEO optimistic for success of company’s reorganization

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The new CEO at Rackspace Technology Inc. sees heavy lifting ahead as the company rolls...

SAN ANTONIO — The new CEO at Rackspace Technology Inc. sees heavy lifting ahead as the company rolls out its new operating structure and works to regain credibility with investors.The San Antonio cloud computing company made progress toward those goals in the third quarter as it increased revenue for a 12th-straight quarter, even as its net loss widened. Both measures topped the company’s guidance and Wall Street’s expectations.

The company said it was putting the 1.2 million-square-foot main office up for sale and downsizing to 75,000 to 90,000 square feet of office space on the far North Side.Rackspace is leaving longtime Windcrest headquarters for new office space in North San Antonio It first went public in 2008 and eventually lost about 60 percent of its market value amid fierce competition from heavyweights Amazon, Microsoft and Google. By mid-2016, Apollo took the company private in a $4.3 billion deal. Rackspace shifted its business model to begin working with the tech giants to help its customers move their data to private and public clouds.

It credited new customer acquisition and increasing spending by customers in its multicloud services and apps and cross platform segments for the increasing revenue.

 

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