Join top executives in San Francisco on July 11-12, to hear how leaders are integrating and optimizing AI investments for success. Learn More
Cloud services firm Rackspace is doubling down on its push to be a managed services provider with the acquisition of TriCore, a company that provides support and management services for applications like enterprise resource planning (ERP), business intelligence, and analytics systems. The deal is supposed to help Rackspace win more business from customers who want help running their critical applications.
Prior to the acquisition, Rackspace wasn’t able to help those customers who wanted assistance managing applications like Oracle EBS, according to Matt Bradley, the company’s vice president of corporate development and strategy. Rackspace’s customers, however, are hungry for that sort of help.
“Our customers told us that nearly half are going to upgrade or migrate [their on-premises business applications] in the next two years, which is an excellent sign, because an upgrade or a migration is a trigger point to considering a managed services provider,” Bradley said.
TriCore’s services are focused on managing business apps and helping companies to develop applications that connect to those systems and manage business processes around them. The company works with customers who have those apps deployed on-premises, using colocation, or in a public cloud environment.
Join us in San Francisco on July 11-12, where top executives will share how they have integrated and optimized AI investments for success and avoided common pitfalls.
The deal expands on Rackspace’s pivot toward serving as a managed services provider and away from its roots in cloud hosting. Right now, Rackspace offers a variety of services, including support for Microsoft Azure, Amazon Web Services, and Google Cloud Platform.
When Rackspace polled its salespeople, 70 percent of them said that they lost at least one deal over the past 12 months because the company didn’t offer services like those they’ll be bringing on board through the acquisition of TriCore.
While Bradley said the deal was the biggest in Rackspace’s history, the company declined to provide the amount of money spent on the acquisition.
The news comes a day after Rackspace announced that it hired former Earthlink CEO Joe Eazor to serve as its new chief executive.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.