Rackspace Attempts To Take Back The China Internet Market

By TechSecurityChina.com Editor
August 26, 2013

U.S.-based Rackspace, a provider of cloud computing and Web hosting services, has its eyes set on Asia.

Rackspace has been circulating a marketing survey asking for feedback on requirements for the company’s on-demand infrastructure service that combines scalability with affordability. The company promises to donate small funds to a children’s charity in exchange for each response they receive.

Rackspace’s relationship with Chinese companies has had a checkered past. More than a decade ago, when Rackspace was primarily running its operations from its U.S. datacenters, the company made a foray into recruiting Chinese technology clients. Some of those relationships did not last long, as Rackspace’s “fanatical” service failed to deliver latency and 24-hour service needed for companies operating in Asia. There were also problems with mis-allocated bandwidth, internal IP address troubles, and billing issues.

In recent years, Rackspace has expanded to Europe and Asia, but older technology buyers in Chinese technology companies may still be wary of using their services. But the company appears to be trying to shed its past mistakes in this latest expansion for its enhanced cloud services.

Chinese laws make it currently impossible for Rackspace it enter mainland China to conduct the same type of business it does elsewhere in the world. As an Internet Service Provider, Rackspace can not control a Chinese company that sells Web hosting, datacenter, or direct cloud computing services. But by setting up in Hong Kong, whose laws are different, Rackspace can try to circumvent these business restrictions.

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