Rackspace launches managed VMware Cloud Foundation cloud

Rackspace has launched Rackspace Cloud, a fully managed multitenant cloud platform built on Broadcom's VMware Cloud Foundation 9.1. The service is initially available in Dallas.

The platform is aimed at organisations that want to run VMware environments with managed operations while also supporting Kubernetes and containerised applications. Rackspace plans to expand it to Northern Virginia and Chicago.

The launch makes Rackspace one of the first providers to offer a fully managed multitenant platform based on VMware Cloud Foundation 9.1. It also comes as companies in regulated sectors such as financial services, healthcare and the public sector consider how to modernise infrastructure without giving up tighter governance and control.

Demand for private cloud systems has risen as more businesses look for ways to keep sensitive workloads in controlled environments. Rackspace cited Broadcom research showing that 56 per cent of organisations are running or planning to run production AI inferencing in a private cloud, while the share using public cloud for production inference fell to 41 per cent from 56 per cent a year earlier.

Managed platform

The service offers elastic consumption on pre-staged infrastructure, support for both virtual machines and Kubernetes workloads on a single platform, and isolation, security and governance controls for customers with strict compliance requirements. Rackspace is also offering lifecycle management, multiple performance tiers and round-the-clock managed operations.

Rackspace is targeting customers that want to avoid buying extra hardware or maintaining data centre infrastructure directly. That reflects a broader shift in enterprise IT buying, as businesses seek to reduce the operational burden of private infrastructure while retaining oversight of where workloads run.

Broadcom has reshaped VMware's partner ecosystem since completing its acquisition of VMware, prompting service providers and customers to reassess delivery models and support arrangements. Rackspace said it is one of a limited number of Broadcom Advantage Partners able to provide managed cloud services based on VMware Cloud Foundation.

That status may matter to enterprise buyers looking for continuity as VMware products and licensing are folded into Broadcom's private cloud strategy. The focus on managed multitenant services also suggests providers see room for growth among customers that want cloud-style consumption but remain reluctant to move critical systems into shared public cloud environments.

In a statement, Rackspace positioned the new offering as a bridge between existing VMware estates and newer application models.

"For years organizations operating private clouds have had to choose between agility or control," said Bryan Litchford, Head of Product, Engineering, and Data Centres at Rackspace. "Rackspace Cloud removes that tradeoff. The same governed platform that powers an enterprise's VMware environment today provides the flexibility to support Kubernetes and AI inference workloads as business needs evolve, all while maintaining consistent governance and control. With capacity staged in advance, automated lifecycle management, and enterprise-grade VMware capabilities delivered through a fully managed service, customers scale in hours, not procurement cycles."

Partner focus

The product also underscores Broadcom's push to position VMware Cloud Foundation as the core software layer for private cloud deployments. Service providers have become an important route to market for that strategy, particularly for customers that do not want to build and run everything in-house.

Broadcom said the Rackspace launch gives customers another managed option built on its platform.

"Rackspace Cloud powered by VMware Cloud Foundation gives customers a managed path to cloud agility, combining Rackspace's operational expertise with Broadcom's leading private cloud platform," said Ricky Cooper, Vice President of Global Cloud Service Providers, OEM and eOEM at Broadcom. "Together, we are helping enterprises scale their modern private clouds cost-effectively, operate securely, and innovate rapidly."

Rackspace has been expanding its focus on infrastructure and services for AI and regulated industries, and the launch aligns with that strategy by centring on private cloud environments where governance, sovereignty and uptime are key buying criteria. The platform is designed to let customers add capacity more quickly without taking on the procurement cycles and operational work associated with traditional private infrastructure.

The initial rollout in Dallas, with further locations planned in Northern Virginia and Chicago, indicates a regional buildout model that could help Rackspace target customers seeking low-latency access and jurisdictional control over workloads. For enterprises weighing VMware continuity against newer application requirements, the service adds another managed private cloud option in a market being reshaped by Broadcom's ownership of VMware.