Rackspace Hosting Inc.(NYSE:RAX) Reports Steady Q3 Results
There is more to what meets the eye with RackspaceHosting Inc. (NYSE:RAX), than what it reports this quarter.
Rackspace Hosting has been a cloud-based hosting company, offering best-fit solutions for companies. The company has been able to provide quality services aimed at private, public and hybrid cloud services that are cost effective and secure.
Rackspace showed strong positioning, closing the day, Nov 11, at 1.59% higher, at $49.31. The company has traditionally seen a 52-week high and low of $33.91 to $81.36 respectively. Its current market cap is 6.8 billion and more importantly recorded EPS of 0.75 for the quarter past.
Rackspace already has a footprint in over 120 countries and is known for its highly monetized cloud solutions for small businesses to large scale business. In the past quarters, the company has been on expansion spree, re-assembling its services and operations. It has also added high-profile, high net worth companies such as Exceptional Cloud Services to improve its quarterly results.
Announcing the third quarter results, the Chief Executive and Executive Director, Lahman Napier has commented that Rackspace’s move to provide open source cloud platform has led to the company’s transformation as Technology Company with social responsibility, giving back to the community, technical productivity. However, the results of Q3 showed the company has been losing out on profit making by nearly 40%.
In contrast Equinix Inc. (NASDAQ:EQIX) has shown significant market performance recording 0.82%increase over previous close. Currently, Equinix Inc has a market cap of 7.77 billion.
The initiative called Openstack has found users in NASA to other small and private entrepreneurs who continue to build cloud solutions based on this platform.
Openstack has in many ways defined the standards for the opensource cloud computing segment providing secure and reliable services without the hassle of lock-in with a provider. Typically proprietary cloud services, require users to remain subscribed with it for minimal periods of time to show high productivity and return on investments.
Currently, the foundation has over 9,500 individual users and over 850 organizations using the cloud services platform developed by Rackspace.