Rackspace targets Southeast Asia market with Singapore expansion

Rackspace has opened a new office space in Singapore to target the growing demand for managed cloud services in Southeast Asia.

The US-based cloud computing company has moved into One Raffles Place in the heart of Singapore’s central business district, quadrupling the size of its office.

“Moving to the cloud gives businesses greater efficiency and productivity in the face of the changes we are experiencing on the economic and social fronts. This is particularly important at a time when organisations are looking at cost optimisation in response to budget pressures,” said Rackspace.

With the larger office space, Rackspace expects to grow its headcount in Singapore by 25% this year. But as of Wednesday 21 October, Rackspace does not currently list under its locations on their job site.

Through the expansion, Rackspace hopes to develop deeper relationships with local customers at a time when many organisations are using more cloud services amid the Covid-19 pandemic.

“The greatest challenges organisations will face are associated with how prepared they are to deal with remote working initiatives as well as to take advantage of the smart nation programmes being rolled out in the region,” said Sandeep Bhargava, Rackspace’s Managing Director for Asia Pacific and Japan.

A recent Rackspace survey found that 35% of IT decision-makers in Singapore lack a basic understanding of what cloud cost governance and cloud cost optimisation are, and how they differ.

“A cloud-first strategy has become the foundation that enables businesses to transform, differentiate and gain competitive advantage. More than ever, businesses need help to benefit from greater operational simplicity, better support, lower costs and improved security,” added Mr. Bhargava.

Rackspace’s Service Blocks, a six module managed and professional service, is believed to help address the challenges faced by businesses in Southeast Asia by enabling organisations to leverage cloud technologies without having to recruit and train talent, according to Bernard L’Allier, Rackspace’s Managing Director for Southeast Asia.

Rackspace’s expansion in Singapore follows both ByteDance and Tencent’s moves in the city-state.

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Image credit: Ramir Borja

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Stuart Crowley

Editor, W.Media

editor@w.media