May 11, 2014

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Giants Leave Little Room for Rackspace (SPENCER JAKA, 5/11/14, WSJ)

It isn't quite death by a thousand cuts, but Rackspace Hosting Inc. RAX -1.35%  has been bloodied lately.

The problem is the fierce price war taking place in so-called cloud computing. In late March, for example, Amazon.com Inc., AMZN +1.36%  Google Inc. and Microsoft Corp. MSFT -0.25%  all announced price cuts in the 30% to 80% range in various services also provided by Rackspace.

Amazon told Credit Suisse that it was the 42nd price reduction for the Amazon Web Services division, which had revenue last year about twice that of Rackspace. Those three competitors have market values between 40 and 110 times as high as Rackspace.
Posted by at May 11, 2014 4:01 PM
  
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