Rackspace Acquires Managed Cloud Firm TriCore for Undisclosed Sum

Cloud computing specialist Rackspace announced its intentions of acquiring TriCore Solutions, an East Coast enterprise application management company, this June. The TriCore acquisition, whose exact terms are yet to be disclosed, should help Rackspace make a push into complex application management.

TriCore’s acquisition comes less than a year after Rackspace itself was purchased by Apollo Global Management for the sum of $4.3 billion. The East Coast company should fill a big void in Rackspace portfolio of products by delivering services designed to manage business apps and aiding companies to administer the business processes that revolve around them. Rackspace admitted its enterprise customers had long been asking it to deliver the kind of services TriCore offers at a large scale, including enterprise resource planning solution from Oracle, SAP, and others, business intelligence, analytics and more.

Rackspace actually polled its salespeople and discovered that 70 percent of them lost at least one deal within the last 12 months, because the company did not offer services like the ones TriCore’s portfolio will bring onboard.

Now with their power combined, Rackspace and TriCore will be cross-selling their services to their mutual consumer base, but also to new customers.

The TriCore acquisition represents Rackspace’s latest ploy to expand its core cloud management business. Only last month, Rackspace announced its new Global Solutions and Services (GSS) cloud consultancy division that provides customers with expertise and support to help move workloads to public or private clouds. During the same occasion, Rackspace -announced it has earned partner certification from Amazon Web Services and Microsoft Azure but also revealed it has established a strategic partnership with Google Cloud. As for TriCore, Rackspace believes the company is among the best in the space and their services are deemed highly complementary to its own.

TriCore is a company hailing from Norwell, Massachusetts that was established back in 1999. Under the terms of the deal, it appears TriCore and its 500 employees will continue to function independently but will be collaborating with Rackspace on cross-sale opportunities. However, TriCore’s CEO Mark Clayman will be joining Rackspace as senior operational leader.

Rackspace has seen plenty of changes lately. Prior to announcing the TriCore acquisition, the Texas-based cloud computing company revealed its board has appointed Joe Eazor as its new CEO, effective June 12.

Mr Eazor comes to replace Jeff Cotton, who served as the company’s interim CEO following former CEO’s Taylor Rhodes departure three weeks ago.

Eazor is expected to steady the company’s operations while looking to make use of his extensive experience to help the company navigate forward. Eazor has been working as a technology executive for more than 25 years. Most recently he served as the CEO of EarthLink, an IT, network, and communications provider located in Atlanta, Georgia, and helped transition the dial-up Internet service to cloud networking. Prior to EarthLink, Eazor was an executive at EMC and HP.

Rackspace is a household name in the cloud computing industry, as it helped pioneer the OpenStack cloud infrastructure platform. With the TriCore acquisition under its belt, Rackspace is looking towards a new era, one that looks beyond its central cloud management services and is pivoting towards customer support services.

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