Cloud hosting provider Rackspace hosting has used the investment bank Morgan Stanley to explore ways to expand the business, after Amazon and Google reduced prices on products clouds competition at a faster pace than expected, according to information shared by Bloomberg. The result could be a partnership or acquisition.
"Our board of directors decided to hire Morgan Stanley to assess incoming strategic proposals, and to explore other alternatives that could advance the long-term strategy of Rackspace Hosting, "the company told Bloomberg.
fierce competition
growth of sales in Rackspace Hosting is on track to slow for the third consecutive year, even after the company Q1 2014 sales reported last week that exceeded analysts' estimates. Bloomberg says Rackspace suffers from fierce competition caused by the cloud hosting providers such as Google and Amazon.
Two months, Google has reduced the price of its cloud product key accommodation by 32 percent and reduced its storage offering 68 percent. Amazon followed immediately by matching the Google price levels.
In February this year Graham Weston who co-founded Rackspace Hosting in 1998, took over as CEO Lanham Napier when he retired. Weston tried to differentiate the hosting services Rackspace cloud of cheap alternatives offered by Amazon and Google.
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