Rackspace Technology Achieves VMware Sovereign Cloud Partner Status, Enhancing Data Protection Capabilities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
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Should l Buy RXT?
Source: Globenewswire
- Sovereign Cloud Partnership: Rackspace's UK Sovereign Services has achieved VMware Sovereign Cloud Partner Status, indicating its capability to store, process, and protect sensitive data for UK organizations, thereby enhancing its market position in regulated industries.
- Private Cloud Platform Benefits: The service offers a fully managed private cloud platform specifically designed for organizations requiring strict data control, combining high availability, resilient networking, and integrated security controls to reduce operational complexity and accelerate cloud adoption.
- Support for Public Sector: Rackspace's digital Sovereign Cloud enables organizations to optimize private cloud architecture, ensuring mission-critical applications deliver predictable performance and enhanced security, marking a significant support for the UK public sector and demonstrating its commitment to regulated industry clouds.
- Compliance and Data Sovereignty: The VMware Sovereign Cloud Partner Status ensures data remains under local control and adheres to national data privacy and security regulations, with Rackspace partnering with public sector organizations, financial services, and healthcare providers to deliver end-to-end solutions, further solidifying its market position.
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Analyst Views on RXT
Wall Street analysts forecast RXT stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 0.419
Low
1.30
Averages
1.48
High
1.75
Current: 0.419
Low
1.30
Averages
1.48
High
1.75
About RXT
Rackspace Technology, Inc. is an end-to-end hybrid, hybrid cloud, and artificial intelligence (AI) solutions company. The Company designs, builds, and operates its customers’ cloud environments across all technology platforms, irrespective of technology stack or deployment model. The Company operates through two segments. Its Public Cloud segment is a service-centric, capital-light model providing value-added cloud solutions through managed services, elastic engineering and professional services offerings for customer environments hosted on the Amazon Web Services (AWS), Microsoft Azure and Google Cloud public cloud platforms. Its Private Cloud segment is a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of its data centers as well as in those owned by customers or by third parties. Private Cloud product portfolio includes Programmatic Infrastructure, Cloud Operating Systems, Platform-as-a-Service, and others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Migration and Implementation: Rackspace will serve as Palantir's partner in data migration and global implementation, particularly critical for regulated industries, ensuring AI deployments meet strict data sovereignty and compliance requirements, thereby enhancing customer trust.
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- Strategic Partnership: Under the agreement, Palantir's software will operate within Rackspace's Private Cloud and U.K. Sovereign data centers, which not only enhances Rackspace's technical capabilities but also provides customers with more secure cloud services.
- Engineer Training Initiative: Rackspace currently has 30 engineers trained on Palantir technologies and plans to expand this number to over 250 in the next year, aiming to improve data migration and complex deployment capabilities, thereby accelerating AI implementation for clients.
- Industry Impact: Rackspace CEO Gajen Kandiah stated that this partnership will help customers accelerate time to value in regulated industries, emphasizing the importance of governance and security, which further solidifies Rackspace's leadership in the cloud services market.
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