Rackspace Acquires Slicehost and JungleDisk to Beat Amazon Cloud

October 22nd, 2008 at 12:00 am

rackspace, slicehost, jungledisk, cloud hosting, cloud computing, amazon cloud services

Cloud Computing and Storage is now the domain of Amzon. Other players don’t come close to Amazons server farms dedicated to forming the cloud as we know it today. from site and data hosting to cloud computing, Amazon is king.

Still this doesn’t scare away other companies from playing in the same space. Rackspace for one is rallying its forces and digging deep into its pocket to take on Amazon. Rackspace recently announced that it has agreed to buy two storage and cloud startups to beef up its product line. Slicehost and Jungle Disk are being acquired for $18 million.

"Cloud computing offers tremendous benefits to our customers that complement our traditional managed hosting services," said Lanham Napier, CEO, Rackspace Hosting. "Being a leader in hosting means being a leader in the cloud. Today, we made clear our intent to have the best suite of cloud offerings. Our new offerings are part of a strategy to bring cloud benefits to all businesses with simple, cost-effective products that everyone can use, backed by the best customer support that only Rackspace can deliver."

Slicehost offers developers “slices” in Xen-based virtual servers that are much cheaper and generally easier to use than a traditional dedicated server. The service is a direct competitor to Amazon’s Elastic Compute Cloud (EC2). On the other hand, Jungle Disk is a file storage and backup service that up until now has relied on Amazon’s Simple Storage Service (S3).

Both companies will add to Rackspace’s portfolio and products while initially maintaining their own operations until eventually integrate completely into their new home.

"On-demand computing is the new foundation of hosting," said Jason Seats, founder, Slicehost. "Rackspace gives us the ability to expand the Slicehost offer and meet the needs of the corporate world whose interest in cloud technologies has only just begun. In addition, no one else shares our customer first service philosophy more than Rackspace. It is an obvious fit."

"Rackspace is a natural fit for the next evolution of Jungle Disk," said Dave Wright, CEO and founder, Jungle Disk. "We are creating a set of storage solutions that will help solve rapidly-growing storage problems for businesses. We believe that no one could take this solution to the business world better than Rackspace. Together we will push the cloud revolution and make simple and cost effective storage solutions available to businesses of all sizes." [Press Release]

Despite these new acquisitions, Rackspace still has a lot of ground to cover to match Amazon. However these acquisitions area step in the right direction.