Scott Ball / Rivard Report
Managed cloud provider Rackspace will purchase California-based cloud consultancy and service company Onica, the two companies announced Monday. Terms of the deal, which is expected to be finalized in the next two months, were not disclosed.
The Santa Monica, California-headquartered Onica comprises 350 consultants throughout North America. As Amazon Web Services has dominated the cloud landscape in recent years, Rackspace has become less of an AWS competitor and more of a support company helping clients manage their cloud services on AWS, Google, Microsoft Azure, and other platforms.
Onica is an AWS consulting firm and service provider.
“As a cloud pioneer, Onica has established itself as one of the largest pure-play AWS consultancies, with an unmatched reputation for true capability leadership with AWS and customers,” said Rackspace CEO Kevin Jones in a statement. “This acquisition will strengthen our ability to meet all of our customer needs on AWS, and together, we will have the most complete set of professional services and managed service capabilities in the industry.”
This year has brought significant changes at Rackspace, including the arrival of Jones, a former transit services executive who took the reins in April. A spate of departures soon followed, including several members of the company’s executive team.
Since being acquired and taken private in 2016, Rackspace has gone through three rounds of layoffs and most recently announced a partnership with Indian IT firm Tech Mahindra that sent as many as 125 Rackspace employees to the Indian company.
In a press release, the company said the addition of Onica will complement its existing managed cloud capabilities.
“By combining our capabilities with Rackspace’s global presence, resources and scale, we will be better positioned to achieve our mission of helping customers innovate using AWS,” Onica CEO Stephen Garden said in the release. “We pride ourselves on delivering results for customers, and in Rackspace, we have found a partner that shares our passion for providing a customer-obsessed experience.”
Garden and Onica Chief Technology Officer Tolga Tarhan will stay on board to lead the company after the acquisition, according to the release.