Market Moves Highlight Need for Long-term Partner Stability

If you’ve been watching the cloud computing and hosting market in recent months, you’ve probably seen some merger and acquisition movement, with several hosting companies being snatched up by major telecommunications service providers.  Terremark was recently bought by Verizon, Time Warner Cable snapped up NaviSite and most recently Savvis was acquired by CenturyLink.  And if you’re a VAR, MSP or IT consultant that’s been looking for a hosting provider, this is definitely something to take notice of.  There are likely to be many factors that impact your decision of who to work with for your hosting and cloud computing solutions and one of those major factors should be the longevity and stability of the company you choose.  Not only does it impact how you’ll work with that company, but it also plays a role in how that provider works with your customer.

First and foremost, if you choose to work with a hosting and cloud provider, it’s a relationship you’re making an investment in, so it’s in your best interest for that company to stick around. Rackspace is committed to continue delivering the best solutions and offerings to customers and our channel partners.

One of the biggest reasons for that is because customer service and support – branded here at Rackspace as Fanatical Support® – are incredibly important to us. Just think of the level of support you receive from your current telco or cable provider and ask your self is this what you want your customers to experience with their mission-critical hosted applications. Fanatical Support® is part of what makes Rackspace a solid provider for VARs, MSPs, IT consultants and many other companies that want to extend cloud services to their customers.

Another important reason it can be concerning when your cloud provider gets acquired is that their way of business quickly becomes the way of the acquirer.  If your provider is gobbled up by a company whose approach is to go direct to customers and cut you out of the deal, you may be left in a lurch, providing business to a company that may be compromising the relationship with your customers.

You always want to evaluate a potential provider the way you’d evaluate a potential employee. So if you aren’t confident in a provider’s longevity or stability it can negatively impact your business, as well as the customer relationships that drives that business.  It isn’t worth the gamble, so be sure you pick a provider that’s in it for the long haul with you, and one that delivers the best possible experience for your customer.

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