Rackspace to acquire Datapipe for managed cloud services

Map of Datapipe's data centers worldwide (source: Datapipe)Rackspace today announced that it signed an agreement to acquire Datapipe, a US-based provider of managed services across public and private clouds, managed hosting and co-location. Both being privately held companies, the transaction is expected to complete in Q4 2017.

Being the largest acquisition in Rackspace's history, the deal will bring new capabilities to Rackspace to enhance its customer service worldwide.

Following the acquisition, Datapipe will bring to Rackspace its capabilities including the experience of serving high-profile public sector customers, including the US Departments of Defense, Energy, and Treasury, as well as the UK Cabinet Office, Ministry of Justice, and Department of Transport; and professional services, software and tooling that will help better serve enterprise customers.

On the other hand, Datapipe customers are expected to benefit from Rackspace's experience in Microsoft, VMware, and OpenStack private clouds, including new service offerings for Azure Stack and VMware Cloud on AWS; managed Google Cloud Platform; and managed services for enterprise applications, including those in the Oracle and SAP ecosystems, and those used in digital marketing and ecommerce.

2 Tseun Wan data centers included

Founded in 2000, Datapipe has 825 employees and 29 data centers in nine countries (click on the above map to enlarge). These include two data centers currently located in Tsuen Wan, Hong Kong. At present, Datapipe's two Hong Kong data centers provide co-location, managed dedicated hosting, network management, managed security, compliance management, and hybrid cloud. Further, Datapipe will provide traditional co-location services and managed services on the Alibaba Cloud. 

"Our customers are looking for help as they spread their applications across public and private clouds, managed hosting, and co-location, depending on the blend of performance, agility, control, security, and cost-efficiency they're seeking," said Joe Eazor, CEO of Rackspace. "With the acquisition of Datapipe, we're very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe."

"We are very proud of the business we have built and the innovations and successful customer outcomes we have been recognized for, and the future of Datapipe will be even brighter in combination with Rackspace," said Robb Allen, founder and CEO of Datapipe. "Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform, and Microsoft Azure. They also need help navigating the use of private clouds, managed hosting and co-location solutions, often in combination, as they move critical applications out of their corporate data centers. The combination of complementary capabilities and resources from both of our companies will create the world's leading provider of multi-cloud managed services."

Both Rackspace and Datapipe have been positioned as leaders in the Gartner Magic Quadrant assessments of providers of managed cloud services, and in industry rankings by Forrester and other leading analyst firms.

Integration plan

Pending regulatory approvals, Rackspace's acquisition of Datapipe is expected to close in Q4 2017. Rackspace will develop a comprehensive integration plan and will take great care to maintain and enhance the exceptional customer outcomes that both companies are known for. Rackspace looks forward to welcoming the talented employees from Datapipe.