Rackspace Buys ObjectRocket (RAX)

Rackspace Buys ObjectRocket

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

On Tuesday, Rackspace (NYSE: RAX ) announced that is has acquired "MongoDB" database-as-a-service provider ObjectRocket, saying the purchase will expand its ability to "help customers shoulder big data in the cloud for today's most demanding applications."

MongoDB is a popular "NoSQL" database management system, and Rackspace cites research from The 451 Group saying that revenue from NoSQL software is expected to grow at a compound annual rate of 82% through 2015. For context, Wall Street analysts expect Rackspace's own earning to grow at about 30% -- a very respectable rate, but nowhere near the lightning speed of this new on-demand software business. By taking ownership of ObjectRocket's "best-in-class" platform for NoSQL, Rackspace hopes to participate in this growth.

Financial terms of the acquisition, however, were not disclosed. Nor were Rackspace's own expectations for how the purchase would affect its business going forward. Rackspace shares sat out most of today's rally, gaining only 0.1% to close at $55.12.

More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.