Rackspace Will Resell Amazon Cloud Services


New reseller partnership could be a significant step for both companies.

The Wall Street Journal is reporting that cloud vendor Rackspace has entered into a partnership with Amazon Web Services (AWS). Speculation is that the deal will be similar to the pact Rackspace signed with Microsoft in July, in which Rackspace acts as a reseller for the background cloud vendor.

The news provides some insights into Amazon's global cloud strategy and resources. It appears that Amazon has more capacity than it can sell on its own, so it is drawn to the role of serving as a wholesaler for cloud space marketed by other companies. Rackspace, on the other hand, offers significant market presence and sales resources but could be finding it more difficult to compete directly with huge data vendors like Google, Amazon, and Microsoft for cheap cloud space. The move could thus lead to a winning scenario for both companies. And the fact that Rackspace now has partnerships with both Amazon and Microsoft could put the company in a strong position to negotiate favorable terms if they succeed in their new role as a cloud reseller.


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