Rackspace Technology
A global managed cloud and multi-cloud technology services provider.
Last updated October 15, 2026
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Overview
Rackspace Technology is a United States-based information-technology company focused on managed cloud, multi-cloud, application, data, security, and professional services. It helps organizations design, migrate, operate, optimize, and secure technology environments built on public-cloud platforms such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private-cloud and hybrid infrastructure. The company serves businesses that need external expertise to run complex technology estates, particularly where workloads span multiple providers or require specialized support, governance, modernization, and round-the-clock operations. The business began in San Antonio in the mid-1990s. Richard Yoo initially operated Cymitar Technology Group from a garage, providing internet access to fellow students. Dirk Elmendorf and Patrick Condon were involved in the founding, while Graham Weston and Morris Miller later supplied seed capital and took on management responsibilities. The company adopted the Rackspace name in 1998, and Weston became chief executive. Its early reputation was built around dedicated hosting and a highly responsive customer-service model marketed as “Fanatical Support.” That operating philosophy emphasized accessible human assistance, live support, and close involvement in customers’ infrastructure rather than a purely self-service hosting model. Rackspace expanded from traditional hosting into cloud services during the 2000s. It launched the Mosso business as an experiment in white-label hosting, developed cloud offerings, and acquired complementary businesses including Webmail.us, Slicehost, Jungle Disk, and Cloudkick. In 2008 it became a public company on the New York Stock Exchange. Rackspace also became an early contributor to OpenStack: its Cloud Files technology formed the basis of OpenStack Object Storage, and the company later adopted OpenStack Compute for its cloud-server platform. These activities helped position Rackspace as an important commercial participant in the early open-source cloud ecosystem. The company broadened its capabilities through acquisitions and partnerships, including businesses and consultancies associated with Microsoft SharePoint, managed databases, Salesforce, Amazon Web Services, Google Cloud, data analytics, and artificial intelligence. It increasingly shifted away from being primarily an infrastructure owner toward being a services and operations partner across customers’ preferred platforms. In 2016 Apollo Global Management acquired Rackspace, taking it private and ending its NYSE listing. The company returned to public markets in 2020 through a Nasdaq listing under the symbol RXT and adopted the name Rackspace Technology to signal its broader technology-services scope. In the 2020s, Rackspace expanded its cloud data, analytics, application modernization, security, and generative-AI practices. It launched Foundry for Generative AI by Rackspace, known as FAIR, in 2023. The company has also faced operating and financial pressure, including declining revenue in parts of the business, impairment charges, leadership changes, and a major December 2022 security incident affecting hosted Microsoft Exchange customers. Rackspace said it powered down affected systems to protect customer data and recommended migration to Microsoft 365 while recovery efforts continued. A related class-action case was filed and later dismissed. Rackspace remains an active public company headquartered in San Antonio, with international offices and data-center operations supporting its managed-services model.
History
Rackspace Technology traces its origins to Cymitar Technology Group, an internet-access business started in San Antonio by Richard Yoo in the mid-1990s. Dirk Elmendorf and Patrick Condon were associated with the founding, and Graham Weston and Morris Miller later provided seed capital and helped manage the company. The business was renamed Rackspace in 1998, with Weston becoming chief executive. Its initial business centered on internet access, dedicated servers, and hosted infrastructure. During the 2000s Rackspace differentiated itself through customer support. Its “Fanatical Support” approach stressed live assistance and close operational involvement, helping the company compete in web hosting at a time when many providers were becoming increasingly automated. Rackspace launched ServerBeach as a lower-cost dedicated-server brand and introduced Mosso, an initiative that experimented with white-label hosting. Mosso ultimately helped establish the company’s cloud-services direction. Rackspace pursued expansion through acquisitions. Webmail.us became Mailtrust and later part of the Cloud Office division. Slicehost added virtual private servers, while Jungle Disk provided online backup capabilities. Other acquisitions added monitoring, OpenStack development, managed databases, email delivery, virtualization, and collaboration expertise. Rackspace also acquired SharePoint911, Datapipe, RelationEdge, Onica, and Just Analytics as it expanded from infrastructure hosting into broader managed cloud and consulting services. Several acquired businesses, including ServerBeach, Mailgun, Jungle Disk, and Exceptional Cloud Services, were later sold, spun off, or otherwise separated as the company refined its strategy. Rackspace was an early contributor to OpenStack. In 2010 it contributed Cloud Files source code to the project, where it became the basis of OpenStack Object Storage. In 2012 the company announced that OpenStack Compute would underpin its Cloud Servers service, alongside databases, monitoring, block storage, and virtual networking. Rackspace subsequently developed managed services around major public-cloud platforms, including AWS, Microsoft Azure, and Google Cloud, and positioned itself as a provider capable of operating across multiple cloud environments. The company listed on the New York Stock Exchange in 2008. Leadership changed several times during the following decade: Lanham Napier was succeeded by Taylor Rhodes, Joe Eazor, and Kevin Jones, with Graham Weston serving as chairman and interim chief executive at different points. Apollo Global Management agreed to acquire Rackspace in 2016, and the transaction closed later that year, ending the company’s NYSE trading history. Rackspace returned to public ownership in 2020 through a Nasdaq offering under the symbol RXT and adopted the corporate name Rackspace Technology. In the 2020s the company emphasized managed public cloud, application modernization, security, data and analytics, and artificial intelligence. It launched FAIR, a generative-AI consulting and deployment practice, in 2023. The period also brought significant challenges. A December 2022 security incident disrupted hosted Microsoft Exchange services for customers and led to litigation that was dismissed in 2023. Rackspace also reported substantial impairment charges and revenue pressure in subsequent years. Its San Antonio global headquarters moved from the former Windcrest location to RidgeWood Plaza II in January 2024. Rackspace remains active internationally as a managed cloud and technology-services company.
- 2024
San Antonio headquarters relocated
[1]Rackspace moved its global headquarters to RidgeWood Plaza II in north-central San Antonio.
- 2023
FAIR generative-AI practice launched
[1]Rackspace launched Foundry for Generative AI by Rackspace, focused on consulting and deployment services.
- 2022
Hosted Exchange security incident
[1]A major incident disrupted hosted Exchange services and resulted in customer migration recommendations and subsequent litigation.
- 2020
Name changed to Rackspace Technology and company relisted
[1]The company adopted the Rackspace Technology name and began trading on Nasdaq under RXT.
- 2017
Managed Google Cloud program announced
[1]Rackspace announced a managed-services offering for Google Cloud Platform and began beta testing later that year.
- 2016
Apollo acquisition completed
[1]Apollo Global Management acquired Rackspace, taking the company private and ending its NYSE listing.
- 2012
OpenStack Compute adopted for Cloud Servers
[1]Rackspace announced that OpenStack Compute would provide the underlying technology for its Cloud Servers service.
- 2010
Cloud Files technology contributed to OpenStack
[1]Rackspace contributed the source code of Cloud Files to OpenStack, where it became OpenStack Object Storage.
- 2008
Rackspace becomes publicly listed
[1]Rackspace completed an initial public offering and began trading on the New York Stock Exchange under RAX.
- 2007
Webmail.us acquired
[1]Rackspace acquired the email-hosting company Webmail.us, later branding it Mailtrust.
Products and positioning
A premium-oriented managed cloud and multi-cloud services partner that combines platform expertise, migration and modernization capabilities, security, and ongoing operational support.
Managed cloud services
Rackspace Managed Cloud
A family of managed infrastructure and cloud-operations services supporting public, private, and hybrid environments. Services generally combine platform management, monitoring, support, migration, optimization, and operational expertise rather than selling infrastructure alone.
Application modernization and managed services
Rackspace Application Services
Consulting and delivery services for building, modernizing, migrating, and operating business applications across cloud environments. The offering complements Rackspace’s infrastructure work with development, architecture, integration, and ongoing application support.
Public-cloud managed services
Rackspace Managed AWS
Managed services for Amazon Web Services environments, including migration, architecture, operations, governance, security, and optimization. Rackspace acts as an operational and advisory partner for organizations using AWS workloads.
Public-cloud managed services
Rackspace Managed Microsoft Azure
Managed Azure services covering cloud adoption, infrastructure operations, application modernization, security, and support for enterprise workloads.
Public-cloud managed services · 2017
Rackspace Managed Google Cloud
Managed Google Cloud services introduced as Rackspace expanded its multi-cloud portfolio. The offering is intended to help customers operate Google Cloud applications with specialist reliability, migration, and support expertise.
Artificial intelligence services · 2023
Foundry for Generative AI by Rackspace
A consulting and deployment practice launched to help organizations identify generative-AI use cases, design solutions, and move AI applications into production. It extends Rackspace’s cloud, data, and application capabilities into enterprise generative AI.
Controversies
2026
Rackspace sued in securities fraud class action over AI effort disclosures
A securities fraud class action was filed against Rackspace Technology, Inc. and certain senior executives in the U.S. District Court for the Southern District of New York, alleging the company misled investors about its AI efforts and their impact on financial performance after its stock fell 33.6% on July 9, 2026. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934; the lead plaintiff deadline is September 28, 2026.
2022
Hosted Microsoft Exchange security incident and service outage
A December 2022 incident affected customers using Rackspace-hosted Microsoft Exchange services. Rackspace characterized the event as a security incident and powered down systems to protect customer data. Customers were advised to migrate to Microsoft 365 while restoration efforts proceeded. The event led to a proposed class action, which was dismissed in May 2023.
2010
Termination of hosting for Dove World Outreach Center
Rackspace discontinued hosting for Dove World Outreach Center after its pastor announced plans to burn Qurans. The decision generated criticism from the organization and commentators who characterized it as limiting or indirectly attacking freedom of expression.
Marketing campaigns
- 2000Fanatical Support
Global
Rackspace built its brand around a customer-service promise known as Fanatical Support. The model emphasized human assistance, live support, and close operational engagement, and became a central part of the company’s differentiation in hosting and cloud services.
Outcome. Established a durable service-oriented brand identity and influenced the naming of facilities and local infrastructure around the San Antonio headquarters.
Brand decisions
2023
Launch FAIR generative-AI practiceProduct launchBackground
Demand for enterprise generative-AI adoption created an opportunity to combine Rackspace’s cloud, data, application, and consulting capabilities.
Action taken
Rackspace launched Foundry for Generative AI by Rackspace, offering consulting and deployment services.
Aftermath
Generative AI became a named component of Rackspace’s broader technology-services portfolio.
2020
Return to public markets under RXTOtherBackground
Rackspace had broadened beyond traditional hosting and sought a public-market identity aligned with cloud and technology services.
Action taken
The company changed its name to Rackspace Technology and listed on Nasdaq under RXT.
Aftermath
The relisting established Rackspace Technology as the company’s public corporate and brand identity.
2016
Accept Apollo Global Management acquisitionM&ABackground
Rackspace pursued a transaction that would remove it from public markets and place it under private-equity ownership.
Action taken
Apollo Global Management acquired the company in a transaction reported at $4.3 billion; the deal closed in November 2016.
Aftermath
Rackspace ended its NYSE listing and operated as a private company until returning to public markets in 2020.
2010
Discontinue hosting for Dove World Outreach CenterStrategyBackground
The customer’s pastor announced a plan to burn Qurans, creating a high-profile dispute over whether Rackspace should continue providing hosting services.
Action taken
Rackspace ended its hosting relationship with the organization.
Aftermath
The decision prompted public criticism and debate about provider policies, customer contracts, and freedom of expression.
2010
Contribute Cloud Files technology to OpenStackStrategyBackground
Rackspace sought to participate in an open-source cloud ecosystem and broaden the relevance of its cloud technology.
Action taken
The company contributed Cloud Files source code under the Apache License, enabling its use as the foundation of OpenStack Object Storage.
Aftermath
The contribution strengthened Rackspace’s association with OpenStack and open-source cloud infrastructure.
Recent events
Reported
Rackspace sued in securities fraud class action over AI effort disclosures[3]
A securities fraud class action was filed against Rackspace Technology, Inc. and certain senior executives in the U.S. District Court for the Southern District of New York, alleging the company misled investors about its AI efforts and their impact on financial performance after its stock fell 33.6% on July 9, 2026. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934; the lead plaintiff deadline is September 28, 2026.
Reported
Rackspace Technology appoints Shashank Samant to its board[4]
Rackspace Technology announced that Shashank Samant was appointed to its board of directors, effective October 18, 2021.
Reported
Rackspace Technology receives Dell Technologies EMEA expansion award[5]
Rackspace Technology announced that it had received the Dell Technologies Global Alliances - Excellence in Expansion, EMEA Award 2021.
Reported
Rackspace Technology files for IPO[6]
Rackspace Technology filed for an initial public offering on Friday, July 10, 2020, according to the article; it did not specify the offering size.
Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.
Reported
Rackspace changes its name to Rackspace Technology[7]
Rackspace changed its name to Rackspace Technology, saying the new name reflects the end-to-end technology solutions it plans to provide.
Reported
Rackspace wins VMware Global Partner of the Year award[8]
Rackspace announced that it received VMware’s Global Partner of the Year Award in the Partner Social Impact category.
- Unconfirmed
Rackspace announced an agreement to acquire Onica[9]
Rackspace announced an agreement to acquire Onica, an AWS partner specializing in cloud-native solutions. Rackspace expected the acquisition to close in the fourth quarter; financial terms were not disclosed.
Sources10 sources
- 1Rackspace Technologyen.wikipedia.org
- 2Rackspace Technology official websiterackspace.com
- 3Rackspace sued in securities fraud class action over AI effort disclosuresprnewswire.com
- 4Rackspace Technology任命Shashank Samant加入董事会finanznachrichten.de
- 5Rackspace Technology获得戴尔科技EMEA扩张卓越奖finanznachrichten.de
- 6Rackspace Technology提交首次公开募股申请coinspeaker.com
- 7Rackspace更名为Rackspace Technologynetworkworld.com
- 8Rackspace 获得 VMware 全球年度合作伙伴奖finanznachrichten.de
- 9Rackspace宣布收购Onica的协议crn.com
- 10Apollo-Backed Rackspace Technology Files for U.S. IPOdatacenterknowledge.com
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