Rackspace's Datapipe acquisition aftermath: what to expect

Reinhard Waldinger, Managing Director, Rackspace InternationalFollowing the joint announcement of Rackspace's acquisition of Datapipe's managed cloud services yesterday, Rackspace International Managing Director Reinhard Waldinger (pictured) shared with Computerworld Hong Kong readers on what follows after the Datapipe acquisition.

As Rackspace expects the deal to complete soon in Q4 2017, what should customers expect during this transition period?

"During this transition, we will take special care to maintain and enhance the exceptional customer experience that has differentiated both Rackspace and Datapipe from our competitors," said Waldinger.

Will there be major changes?

Datapipe's products, services and employees are expected to be fully integrated into the Rackspace organization, operations, and branded portfolio. "Until the deal closes, which we expect to happen in Q4 2017, both companies will continue to operate separately and conduct business as usual," he added. As this large transaction requires multiple regulatory approvals in the US and abroad, Matt Bates, Rackspace's chief transformation officer, will work with the leaders across both c ompanies to integrate Datapipe into Rackspace.

"In the near term, we expect that Datapipe employees will continue to work out of the same locations where they work now. Further details on office locations, data centers, etc. will be decided during the integration process."

Waldinger said the integration of TriCore, which Rackspace acquired in June, "is going very smoothly, with very high retention of employees and customers, and that gives us confidence that our integration of Datapipe will be just as successful."

Will there be price adjustment?

In response to potential customer concerns that the combined new services and capabilities of Rackspace and Datapipe will push up prices, Waldinger said: "Following Rackspace's acquisition of Datapipe and its combination of new services and capabilities, some customers may be concerned about our ability to raise prices. This isn't the case at all - this acquisition will not cause an increase in pricing. This remains a highly competitive industry, and we'll still be more agile and flexible compared to the giant system integrators, telecoms, etc."