Reply to post: nah, it's not because they are short of money

Rackspace literally decimates workforce: One in ten staffers let go this week

Anonymous Coward
Anonymous Coward

nah, it's not because they are short of money

They are currently in the managed hosting business. They employ a lot of sysadmins and ancilliary staff who are in a shared pool responding in a transactional way to customer tickets. They want to move to being a services business where staff are allocated to particular customer engagements with a defined scope of work (and primarily cloud-based) rather than an all-you-can-eat support model. Basically they want to sell the sysadmins direct to customers and turn them into a billable asset rather than a cost-center.

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