In Cloud Wars, Don't Forget No. 2 Rackspace

Rackspace is in the mix of cloud pricing war

Apr 3, 2014 at 1:00PM

WinterThis story originally written by Nancy Gohring at CITEworld. Sign up for our free newsletter here.

With the cloud pricing war taking place over the last week, you'd be forgiven for thinking that Amazon, Microsoft and Google (NASDAQ:GOOGL) (NASDAQ:GOOG) are the top cloud providers. But a report out this morning from RightScale throws another vendor in the mix: Rackspace (NYSE:RAX).

In RightScale's annual State of the Cloud Survey, the company surveyed more than 1,000 businesses and found that Rackspace was the second most used cloud, behind Amazon Web Services. Google App Engine, a platform as a service, comes in third.

Don't miss: In defense of higher cloud prices

However, what's notable about the survey is that around 80 percent of respondents are small and medium businesses. In addition to the overall ranking, Rightscale breaks out usage by enterprise or small and medium business.

Those results show that Rackspace and Google rank lower among enterprises. They'll need to figure out how to attract enterprise users, which tend to generate more revenue, if they want to stay competitive.


Source: RightScale

Among enterprises, RightScale found that AWS is the most used followed by VMware vCHS. However, RightScale cautions that VMware vCHS, the public VMware cloud offered by VMware, hasn't been out that long and, based on follow up interviews, RightScale found that respondents were likely confused and in many cases aren't actually using the service.

Azure came in third and fourth place with its PaaS and IaaS with Rackspace in fifth and Google App Engine next. Google's infrastructure service was ranked eighth.

Among enterprises, the rankings make sense. Many businesses have long relationships with Microsoft and so turning to Azure may seem more logical for running important enterprise apps than Google.

Rackspace has been working hard to try to attract enterprises but has long been known as a provider suited to smaller businesses. While it's doing better than Google in attracting enterprise buyers, the RightScale survey indicates that enterprises may be more interested in Google than Rackspace. Seventeen percent of the enterprise respondents said that they are experimenting with Google's infrastructure service, compared to 14 percent experimenting with Rackspace. Twelve percent said they plan to use Google's infrastructure service compared to 11 percent who plan on using Rackspace.

Service providers like Rackspace and Google face a challenge getting into the enterprise but it's not insurmountable. After all, Amazon is traditionally a consumer company but managed to secure 49 percent of live apps among enterprises in the RightScale survey.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

CITEworld has no position in any stocks mentioned. The Motley Fool recommends Google (A shares), Google (C shares), and Rackspace Hosting. The Motley Fool owns shares of Google (A shares) and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers