Rackspace Launches VMware-Powered Multitenant Cloud Platform — Rackspace Technology, Inc.

Event summary

Rackspace Technology launched Rackspace Cloud, a fully managed multitenant cloud platform built on VMware Cloud Foundation 9.1, initially available in Dallas, with expansions planned for North Virginia and Chicago.
The platform is among the first fully managed multitenant solutions on VCF 9.1, positioning Rackspace as a key Broadcom Advantage Partner.
Key features include elastic consumption, integrated support for VMs and Kubernetes, and enterprise-grade isolation and governance controls.
Rackspace will showcase the platform at VMware Explore 2026 in Las Vegas as a Diamond Sponsor.

The big picture

Rackspace's launch aligns with a broader industry shift toward governed private infrastructure, particularly for AI workloads. The platform addresses enterprise demand for agility without sacrificing control, a strategic tension highlighted by Broadcom's research. Rackspace's positioning as a managed cloud provider on VCF 9.1 could reshape the competitive landscape for private cloud solutions.

What we're watching

Market Adoption: The pace at which enterprises shift from public to private cloud for AI inferencing, following Broadcom's research showing a 15% year-over-year decline in public cloud use for this purpose.
Competitive Positioning: Whether Rackspace can sustain differentiation as one of the few Broadcom Advantage Partners offering VCF-based managed cloud services.
Execution Risk: How effectively Rackspace scales the platform across additional regions while maintaining governance and control for enterprise customers.