Rackspace Serving Up IPO Plans

GigaOM: RackSpace IPO Filing Hints at Expansion Plans. Data center and hosting provider RackSpace Inc., has filed to raise up to $400 million in an initial public offering. Its financials seem generally sound (unlike many tech companies it’s actually profitable), although profits did drop by 10 percent in the last year.

I’ve added Rackspace Inc. contracts. Rackspace had included several employment agreements and economic development agreements in its filings.

2 comments… add one

  • Taj Maldi

    Rackspace is making profits because it is charging its clients arms and legs for servers and support. You can find companies like Server Intellect that offer the same managed servers and superior support for 1/3 of the cost. If you charge 300$ for a candy bar you would make a profit too!

  • If you charged $300 for a candy bar, you would only make a profit if you could find a buyer and the cost of manufacturing the candy bar and selling it was less than $300. I doubt you’ll find any takers if all you are selling is a regular Snickers bar. Instead, the more likely scenario is that to justify the $300 sticker price, you’ll have to make it by hand with some premium grade chocolate, a sprinkle of edible gold dust, and some other rare and expensive ingredient to make it a unique experience. Not sure what the profit margin will be after that since you’ll have to spend a bit on marketing to find an elusive buyer.

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