We have merged with Rackspace!

Today we are making the biggest announcement in the history of our company. We are joining forces with Rackspace and we couldn’t be more excited! They have acquired us and we are now in the process of merging our two businesses. I believe this is going to be the most successful merger in the history of our industry and I am personally committed to making it just that. And if you’re a customer of ours or you are thinking about becoming one, you have nothing to worry about. There are only great things to come!
With that said, let me explain our thinking and answer some really important questions…
Who is Rackspace?
Rackspace Managed Hosting is a recognized leader in the global managed hosting market. They deliver enterprise-level managed services to businesses around the world. Serving more than 15,000 customers in eight data centers worldwide, Rackspace integrates the industry’s best technologies for each customer’s specific need and delivers it as a service via the company’s award-winning Fanatical Support™.
They serve as an extension of their customers’ IT departments, enabling them to focus on their core business. They got started in 1998 and since then Rackspace has grown more than 50 percent a year. There are currently 1,800 Rackers around the world serving customers.
Why are we doing this?

  • We are committed to building the world’s most trusted provider of business email hosting. Rackspace very much believes in our mission and wants to help us make it a reality. They have done a phenomenal job of building one of the world’s greatest service companies and their experience and expertise will be invaluable as we grow our business.
  • We are natural business partners. In fact, we’ve been partners for more than three years. Rackspace already hosts our entire email hosting infrastructure and has become the largest reseller of our email hosting services.
  • Both companies see the world in the same way. Unlike other companies that sell technology-based solutions to businesses, we both believe that great service is what really matters. Since our inception, we’ve been committed to delivering great service to our customers and Rackspace only raises the bar. Experiencing Fanatical Support first-hand has proven to us that Rackspace is a different kind of company—one that is truly dedicated to its customers. We are eager to raise the bar as we bring Fanatical Support to our customers.
  • Our cultures are very similar, which has made integration easy—and exciting! Both companies are filled with amazing, passionate people that love what they do. And you can’t deliver great service unless you have great people that love what they do!
  • We believe in Rackspace. We share their vision for what email and IT hosting will look like in the future. We believe in their leadership team and their ability to execute. We love their people. We believe in Fanatical Support. And most importantly, we believe in our ability to achieve greatness—TOGETHER!

Here are some other questions we expect people to ask:

Should customers expect any changes?
Customers will only see positive changes. Rackspace is going to make a heavy investment in the mail business. This will allow us to more rapidly develop our products and services, strengthen our email system infrastructure, and bring Fanatical Support to our customers.
Since we are already hosting our entire email system infrastructure with Rackspace, our customers don’t have to worry about any type of negative impact on services as a result of this merger.
Are you still going to be a business email specialist?
Yes. In fact, we are going to maintain our own unique website and brand identity and our entire staff will continue to be 100% focused on business email hosting.
Is your leadership team going to change?
No, our entire leadership team is going to remain intact. I will run the entire mail division within Rackspace and I will report directly to Lanham, their chief executive officer.
Is Rackspace committed to serving the business market?
Yes, Rackspace is 100% committed to serving businesses, not consumers. This is another reason why we are such a good fit in the first place.
Are you going to remain in Blacksburg, Virginia?
Yes, we are going to stay in Blacksburg. However, we will now be able to leverage several locations for hiring—including Blacksburg, San Antonio, and the United Kingdom.
Do the Webmail founders view this as an exit strategy?
No way! Bill, Kevin, and I are as committed as ever. I don’t know where it comes from, but we’re so driven that it’s hard to even explain. And the level of respect that we have for the people at Rackspace only adds fuel to our fire.
Who should I contact with more questions?
Tricia, our director of customer communications is the best person to contact. Likewise, you can always email me. We’re both happy to answer any questions that you have.

Rack Blogger is our catchall blog byline, subbed in when a Racker author moves on, or used when we publish a guest post. You can email Rack Blogger at blog@rackspace.com.


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