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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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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXT is 1.48 USD with a low forecast of 1.30 USD and a high forecast of 1.75 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 0.710
Low
1.30
Averages
1.48
High
1.75
Current: 0.710
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.
Rackspace Technology Achieves VMware Sovereign Cloud Partner Status, Enhancing Data Protection Capabilities
- 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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Rackspace Positioned as Leader in 2025 ISG Multi Cloud Services Report
- Industry Leadership: Rackspace Technology has been recognized as a leader in the 2025 ISG Provider Lens Multi Cloud Services Report for midmarket consulting and transformation services, managed services, and FinOps services, showcasing its strong competitive position in the multi-cloud solutions space.
- AI-Driven Optimization: The company enhances management efficiency in multi-cloud environments by integrating AI and automation technologies, enabling rapid recovery, cost reduction, and improved customer experience, thereby solidifying its market position.
- Focus on Midmarket: D K Sinha, President of Public Cloud at Rackspace, emphasized the company's commitment to helping midmarket organizations modernize with confidence, optimizing costs and accelerating time to value through advisory-led transformation and AI-powered automation.
- Comprehensive Service Capability: Rackspace offers end-to-end multi-cloud technology services, capable of designing, building, and operating customers' cloud environments across all major technology platforms, ensuring support at every stage of their cloud journey.
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