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Rackspace Is One of the Leaders in Gartner’s Magic Quadrant

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Rackspace is a leader in Gartner’s Magic Quadrant in North America and Europe

On July 31, 2015, Rackspace (RAX) announced that it had made it to the leading quadrant of Gartner’s “Magic Quadrant for Cloud-Enabled Managed Hosting” in both Europe (EFA) and North America. Gartner evaluates the players and providers based on “completeness of their vision” as well as their ability to execute. In North America, Rackspace was one of two in the leaders quadrant. In Europe, Rackspace was one of the seven players in the leaders quadrant.

IBM (IBM) was placed in the visionaries quadrant, while CSC and Verizon (VZ) made it to the niche players and challengers quadrants, respectively.

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What is cloud-enabled managed hosting?

According to Gartner, cloud-enabled managed hosting is a standardized hosting service that combines cloud-enabled infrastructure with cloud management software and managed services. Here, cloud-enabled infrastructure refers to computing, network, and storage. In simple terms, it’s managed services, but specifically for applications running on the cloud infrastructure.

Strengths and concerns about Rackspace in the managing cloud space

Rackspace emerged as a leader on account of enabling managed services on the same platform as its IaaS (infrastructure-as-a-service) products. Rackspace received praise for its “fanatical support,” or customer service. However, the company faced criticism that “despite being in the leaders quadrant,” it has not deployed infrastructure capacity outside the United Kingdom. Gartner’s report stated, “Customers with data residency requirements or latency concerns in European regions farther away from the UK need to take this into consideration.”

You could consider investing in the iShares US Technology ETF (IYW) to gain exposure to Rackspace. IYW invests about 0.11% of its holdings in Rackspace.

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