Rackspace Targeting Asian Market

Web-hosting giant Rackspace has this week announced plans to take their cloud infrastructure over to the Asia-Pacific, where the demand for such services is seemingly huge.

In an interview with CNBC show “Squawk Box”, Rackspace Hosting’s CEO, Latham Napier revealed “Our next set of investments will be in Asia-Pacific because the demographics are good.” This is despite their still being very real worries about the cyber-security in China, and the recent spate of cloud computing breaches that have brought data security to the fore.

When asked by the hosts of Squawk Box about the security situation, Napier seemed undeterred, saying “”I think the security gets managed. There are certainly issues around the firewall in China, but those things will get solved because the demand there is huge.”

Despite the recent problems suffered by Google in the region due to the issues with firewall, the Rackspace chief still remains upbeat “Right now, we’re in Hong Kong, we’re on the other side of the firewall. Demand has been strong in Australia and Rackspace is looking at opportunities across the sub-Continent as well,” he said.

With the likes of Google, Amazon and Microsoft already operating in the Asia-Pacific area, the competition for Rackspace is going to be tough, especially being that they are much less known; however, Napier believes that Rackspace’s highly regarded focus on support will give them decent market share, “They are generalists and we are a specialist,” he said. “They use closed proprietary technologies, we use open-source technologies. They are playing a scale game where we are playing a service game.”

Napier also went on to suggest that Rackspace will continue to grow and expand their business independently, ruling out the possibility of selling, or collaborating with any of the big tech firms from the west already operating in the Asia-Pacific.

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