Rackspace offloads 'Cloud Sites' hosting segment to Liquid Web

Tue, 9th August 2016, 16:21

Cloud Sites was the developer-centric web hosting offering from RackSpace that was touted as being ‘designed to keep high-traffic websites up and running fast — all of the time’. While the premium service came with a high price point, when your website is responsible for generating significant revenue you can’t afford slow page loads and downtime become even more of an issue.

So the announcement that a deal has been reached for Liquid Web to take over the service is quite worth noting. Rackspace CEO Taylor Rhodes described Cloud Sites as “a good business”, but also stated that it’s “non-core” and therefore no longer a big focus of Rackspace’s overall strategy.

Rackspace in its quarterly earnings statement states:

As Rackspace continues to focus on delivering expertise and Fanatical Support for the world’s leading clouds, while serving more enterprise customers, it has been divesting services that are not core to this strategy.

The agreement on the deal was reached in July and should conclude by September 30. Cloud Sites will remain in San Antonio. For Liquid Web, the deal seems like a good one that will allow it to expand itself through acquisition. The two firms actually have a lot in common, as both market themselves around dedicated customer support, something that Liquid Web believes differentiates itself from similar companies.

Liquid Web CEO Jim Geiger in a press release issued by Liquid Web stated:

With the addition of Cloud Sites, we further our mission to empower web professionals all over the world to create content and commerce without worry, free of problems and devoid of even one bit of hesitation by providing absolutely flawless web hosting. Unfortunately, our industry is trending toward unsupported services, which leaves fast-growing developers, digital agencies and designers alone, without a real person to turn to when they really need help. However, at Liquid Web, day-in and day-out our people stand behind the creators of content and commerce and we’re going to continue to stand behind those businesses who rely on the web and cloud.

Our job is to delight and every single human being in our company is empowered to do so. Each of them has a relentless devotion to simplifying how our customers experience web hosting and cloud services.

Geiger reassured Cloud Sites customers of a smooth transition to Liquid Web saying users of the Cloud Sites platform, who include designers, developers and digital agencies, should expect a seamless transition as Liquid Web and Rackspace work together to complete the transaction.

Rackspace CEO Taylor Rhodes speaking during the company’s financial report’s release refused to confirm or deny rumors reported in the Wall Street Journal of a imminent $3.5 billion private equity buyout of Rackspace.

(editor's fleeting thought.. makes one wonder if the equity firm behind last year's substantial investment  in Liquid Web is looking into increase their market share). 


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