Another company that Amazon would own soon.
On Monday, it has been speculated that Amazon is planning to take over a US cloud services provider, namely, Rackspace Technology.
According to sources, Amazon is trying to acquire minority stakes in Rackspace. This initiative would likely help Amazon Web Services migrate their data and strengthen their ties with the Rackspace.
However, Apollo Global Management Inc has no assurance whether this will happen, for Rackspace is majorly owned. And the Apollo management still hasn’t commented yet regarding the speculations. Due to this, Rackspace shares dramatically increased by 17%.
The Rackspace Technologies
The Rackspace Technologies aims to lease server space and help corporations to store their data in the cloud. Apollo Global Management Inc. acquired the Company last 2016 for $4.3 billion buyouts. The Company has a market capitalization of over $3 billion, almost the same as its debt pile.
If the two companies agree, it would be the second major technology company that Apollo will earn this year. Some companies that Rackspace assists are Microsoft Corp’s Azure, VMware Inc, and Alphabet Inc’s Google Cloud.
Amazon and Slack are joining forces
They say that if you can’t be down your competitor, befriend them. This is how Slack and Amazon started their plan to take on their competitors, Microsoft and Zoom. The competition to dominate in the enterprise has grown aggressive. For the recent months, Microsoft Teams and Zoom have been ruling the crusade in the market, but now Slack decided not to be left behind. This then pushes the unforeseen agreement between Amazon and Slack that aims to leverage its wide array of AWS services in the enterprise workspace.
Amazon and Slack have signed a multi-year agreement, where Amazon has to adopt Slack for in-house communication for their AWS teams. This will present more services to Slack for developing its footprint in the enterprise workspace. Once done with the rollout to its employees, there’s a big possibility that they would overtake IBM to become Slack’s biggest customer. Amazon is the preferred e-commerce giant of Slack as a cloud service provider, for they foresee the benefit from it as a database and analytics tool.
With Amazon’s help, Slack could get the cutting edge tool that can be used to compete with Microsoft Groups. And Zoom, which makes use of several cloud suppliers and who also lately partnered with Oracle for added cloud infrastructure.