Rackspace Technology, a multi-cloud MSP and technology solutions provider, is striving to achieve net-zero carbon emissions by 2045.
Srini Koushik (pictured, top of page), president of AI, technology and sustainability, is driving Rackspace's net-zero efforts. Among the milestones so far: A vastly reduced corporate footprint (which should cut carbon emissions this year), and key sustainability partnerships with multiple technology companies.
Rackspace Business Evolution
Rackspace, founded in 1998, is based in San Antonio, Texas. The company had roughly 6,600 employees as of December 2021.
Over the past decade or so, Rackspace has evolved from a hosting provider into a multi-cloud technology solutions provider. The gradual transformation hit some turbulence from time to time. For instance, the company tried -- and failed -- to compete head-on against hyperscale cloud providers such as Amazon Web Services (AWS), Google Cloud and Microsoft Azure.
Multiple executive changes, reorganizations and ownership changes ensued, and the company ultimately partnered -- rather than competed -- with public cloud service providers.
On the financial front, private equity firm Apollo Group acquired Rackspace for $4.3 billion in 2016. By 2018, Rackspace was exploring a potential IPO with a target valuation of $10 billion. The actual IPO arrived in 2020 with an $8 billion valuation. Fast forward to January 2024, and Rackspace's market capitalization was only about $419.8 million, according to SeekingAlpha.
Still, the company now has expansive multi-cloud expertise within and across its employee base. The lineup includes more than 3,000 cloud engineers who carry more than 7,500 certifications across AWS, Google, Microsoft and VMware technologies. Moreover, the team also holds more than 700 certifications for major enterprise applications such as Salesforce, Oracle and SAP, as of January 2024.
Rackspace: Sustainability and Technology Partner Milestones
Here's a timeline tracking key Rackspace business and sustainability milestones. Check back regularly for updates.
February 2024 - Earnings: Rackspace is expected to announced quarterly results sometime in mid- to late-February. We don't yet know an exact date for the earnings call. But we'll provide a recap once the financial results arrive.
January 2024 - New Headquarters: Rackspace this year will move to a new headquarters -- which is expected to deliver an 80% lower carbon footprint compared to the previous headquarters.
January 2024 - Annual Sustainability Report: Rackspace unveiled a Sustainability Report, "highlighting progress made in the 2023 fiscal year towards its social and environmental sustainability goals." On the partnership front, the company points to relationships with Dell and VMware -- claiming the engagements have helped to reduce energy demands and operating costs for customers. Still, we don't know the specific sustainability KPIs (key performance indicators) for those engagements.
November 2023 - Partner of the Year: Amazon Web Services named Rackspace as its North America Sustainability Partner of the Year.
June 2023 - Executive Promotion: Rackspace promoted EVP and CTO Srini Koushik to president of AI, technology and sustainability.
May 2023 - Executive Recognization: SustainableIT.org honored Rackspace CTO Srini Koushik with a SustainableIT Impact Awards for Social Impact.2045.
MSPs and IT Consulting Firms: Why Sustainability Matters
Meanwhile, numerous MSPs are now marching toward more sustainable business strategies. Examples include Logicalis and NTT Data.
Smaller MSPs and MSP industry veterans have also introduced sustainability services rollouts. Examples include MSP industry veterans at 1E, ESG Global, Evercycle, Kyndryl, Logicalis US, PC Powersave, ScalePad and TD Synnex.
Moreover, Global IT consulting firms that have MSP arms continue to expand their sustainability and ESG practices -- despite some ESG pushback from some conservative circles in the United States. Examples in the market include Accenture, Deloitte, EY, KPMG, PwC and Capgemini.
What's driving the march toward green IT managed services? The anecdotal answers:
As for Rackspace, keep checking this article for sustainability timeline updates in the weeks and months ahead.
