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Amazon could be investing in Rackspace

(Image credit: Image Credit: Gil C / Shutterstock)

Amazon Web Services (AWS), the retail giant's cloud business, is allegedly considering an investment in cloud migration (opens in new tab) company Rackspace.

The firm is valued between $5 billion and $9 billion and AWS is said to be looking to acquire a minority stake from parent company Apollo Global Management, which purchased Rackspace for $4.3 billion in 2016.

According to a Reuters report, Rackspace shares spiked hard on the news, even forcing a brief pause in trading due to volatility.

However, talks are still in the early stages and people familiar with the matter have said it is likely negotiations could take months - or even break down completely.

As the Covid-19 pandemic continues to force businesses into digital channels, public cloud (opens in new tab) spending has reached new heights.

Recent figures from IDC show global spend hit $233.4 billion last year, with PaaS and IaaS segments expanding fastest. SaaS, as the market's single biggest segment, accounted for $122bn in revenue for the year.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.