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Rackspace Grows Managed Cloud Business

The cloud business has often seemed like a race to the bottom in terms of pricing, with Amazon and Google constantly aiming to make cloud computing resources cheaper. It’s a race that Rackspace doesn’t want to win — instead Rackspace is aiming to find a niche in the managed cloud services market. It’s a market that is showing growth.

Rackspace reported its second quarter fiscal 204 earnings on August 11, with Net revenue coming in at $441 million for a 17 percent year-over-year gain. Looking forward, Rackspace provided third quarter guidance for revenue to be in the range of $454 million to $461 million.