Rackspace private cloud strengthens as quarterly losses widen
Rackspace Technology posted modest second-quarter revenue growth as stronger private cloud sales offset weakness in its larger public cloud business, while higher costs and investment in artificial intelligence pushed the company deeper into the red. The San Antonio-based cloud and technology services group generated revenue of $670.1 million for the three months ended June 30, up 0.6% from…
Rackspace Technology experienced a modest increase in revenue for the second quarter, with private cloud sales offsetting weakness in its public cloud business. However, higher costs and investment in artificial intelligence pushed the company deeper into the red, resulting in a wider net loss. Private Cloud revenue grew by 5.5% to $263.3 million, while Public Cloud revenue fell by 2.3% to $406.8 million.
Despite the overall decline, Rackspace's focus on private cloud infrastructure, regulated workloads, and enterprise AI is expected to drive future growth, particularly in sectors seeking greater control over sensitive data and computing workloads.
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