Rackspace CEO: Lower Cloud Infrastructure Prices Are Making Infrastructure Ubiquitous

The cloud space is becoming increasingly competitive. Satya Nadella recently commented that only a few companies have the resources to build infrastructure for the cloud globally. Rackspace Hosting, Inc. RAX CEO, Taylor Rhodes, was on CNBC to discuss how the company can compete with its bigger rivals.

Hallmark Of The Cloud

"Right now what's happening is that the lower infrastructure prices, which is really the hallmark of the cloud, is making infrastructure ubiquitous," Rhodes said.

"And so what's happening is any smart software engineer with a credit card can start writing new apps, new software – and this is powerful for business, but it creates a ton of complexity too for business decision makers to keep up with which technology they are going to productive, what skills to hire."

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He continued, " So, for us, it actually brings us back to our hallmark, which is simplifying that complexity for customers, managing the apps in a cloud and making them work and create value. So, that's really what we have been famous for; we have historically taken other great technologies, wrapped them in a service model and delivered fanatical support. So, we see this creating a new opportunity."

Market Will Want Hybrid Options

On how companies are adopting the cloud, Rhodes said, "What the market is doing is, it's moving from early adoption stage to mainstream and with that comes wisdom. It's not as simple as it seems. One flavor of public cloud isn't fit for every application out there; therefore, hybrid options of single tenant, private clouds working with multi-tenant, public cloud is what most of the market will want."