"Plus, given the $4.3bn price of the deal, it'd be idiotic if Apollo did anything to undermine Rackspace's existing business or upset customers."
Cloud management provider Rackspace says that it will be going private in a deal that will pay shareholders $4.3bn. Investment house Apollo Global Management says it will be paying $32 per share to buy out stakeholders and run Rackspace as a private company. Rackspace stock closed yesterday (prior to the announcement) at $30. …
Rumour - from fairly credible sources - has it that Apollo Global Resources has been funded by Microsoft to purchase Rackspace so that the resulting private firm can then be easily acquired by Redmond facility itself.
Would this deal then be a hoot and coup for Microsoft, converting and then incorporating all of Openstack into Azure, for Microsoft to better Amazon AWS.
But why would Microsoft want Openstack? Every other company that tried to monetize it failed..
And Openstack is about IaaS - yesterdays cloud. Tomorrow is all about PaaS.
Having said that though, MS is certainly gunning for Vmware this year - giving away Windows DC to anyone who switches from vSphere to Hyper-V. Maybe this could be another weapon in their arsenal for that battle.
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