Entries with tag corporate strategies.

Rackspace Set to Go Private

Publicly-traded cloud-services provider Rackspace Hosting says it is considering going private and is in discussions with a private equity firm regarding financing the move, according to technology-news website Tech Crunch. The company had been for sale, but without a deal, it may now be acting as if it wants to go private to pressure potential buyers such as telecommunications provider CenturyLink, Hewlett-Packard, and IBM. Rackspace told Reuters and Tech Crunch it “does not comment on rumors and speculation.” Rackspace, currently valued at $6.1 billion, has faced increasing competition from big companies that provide cloud and hosting services, such as Amazon and Google. “The pressures of being a public company are too much,” a Rackspace source told Tech Crunch. (Reuters)(Tech Crunch)

CNET: Nike Jettisons Development of FuelBand Activity Tracker

A new CNET report claims that Nike is abandoning development of its FuelBand activity-tracking wristband. The report said Nike laid off 55 hardware developers within the 70-employee project group, some of whom might find work elsewhere with the company. Nike said that it won’t comment on employment-related issues In a CNET interview, Nike spokesperson Brian Strong said, “We will continue to improve the Nike+ FuelBand App, launch new Metaluxe colors, and sell and support the Nike+ FuelBand SE for the foreseeable future.” With the announcement, CNET wrote, “Suddenly, it looks like a good handful of fitness band companies are in a state of flux.” (PC Mag)(CNET -- 1)(CNET – 2)

Cisco Launching $1 Billion Cloud Initiative

Cisco Systems says it plans to spend $1 billion in the next two years on cloud computing services, mostly to build datacenters, expected to be on line in North America, Europe, Asia, and Australia this year. The company plans to deliver its Cisco Cloud Services through partnerships with Australian telecommunications provider Telstra, IT distributor Ingram Micro, and Indian IT company Wipro. “Here’s the reality behind the moves: Cisco wants to be an IT partner of choice for the enterprise. The problem for Cisco was that it was selling gear to enable cloud computing but not offering services,” wrote Larry Dignan, editor-in-chief of the business technology news website ZDNet. He said, “The big question is whether Cisco’s cloud efforts ring true to IT buyers or just sound like a case of ‘me, too.’ ” InformationWeek said the service is intended “to serve as a backbone for the Internet of Things.”  (Reuters)(ZD Net)(InformationWeek)

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