Private cloud? Public cloud? Rackspace erases the difference

Rackspace is going to stop distinguishing between the money it makes from public cloud and what it derives from “dedicated” cloud, a category that encompasses a bunch of options.

Well that’s one way to sidestep the whole “is private cloud dead?” debate.

The move may show a fanatical obsession on managed cloud or indicate that Rackspace is giving up on public cloud where leader, [company]Amazon[/company] Web Services, is contending with growing threats from [company]Microsoft[/company] Azure and[company] Google[/company] Cloud Platform. Or both. Tomato, tomahto.

On the fourth quarter earnings call Tuesday, CEO Taylor Rhodes reiterated that “managed cloud” versus the wild-west of unmanaged public cloud is where [company]Rackspace[/company] is focused. And its financial earnings will reflect that going forward. No longer will Rackspace put its public cloud revenue in one bucket and combined private cloud, managed hosting, managed services all into the dedicated cloud revenue bucket.

In an interview after the call, Rhodes acknowledged that most new “greenfield” applications will be built for public cloud deployment over a ten-year time frame. But, there are also many legacy applications that will stay either stay where they are or move to a single-tenant private cloud situation. And there is demand for well-managed specialized clouds for different workloads, Rhodes said.

rax q4 2The accounting changes were made in part to keep Rackspace sales people from selling the wrong cloud to the wrong customer, he said. “We have a dilemma in that we switched from a horizontal position in cloud … to [cloud for] particular workloads. We want to be the best at supporting Oracle commerce and we will be the best at managing that with a highly opinionated point of view on whether Oracle commerce should be a single-tenant or multi-tenant implementation.” I’m guessing that single-tenant will be the answer here.

Rackspace sales people shouldn’t be rewarded “perversely” for selling multi-tenant when single tenant is best, he said.

Overall, the company posted net income of 26 cents per share, surpassing consensus estimates of 19 cents per share, but it missed on revenue, logging $472.2 million where analysts expected $474 million.

rax public cloud ytd

Walmart builds its own shopping search engine

Walmart is now relying on its own search engine called Polaris to help guide shoppers to the right products. The search engine was created out of @WalmartLabs and incorporates semantic technology acquired through Walmart’s purchase of Kosmix.

Walmart tackles gift-giving with Shopycat Facebook app

WalmartLabs, the new commerce research lab created out of Walmart’s acquisition of Kosmix, is formally launching its first product, a gift-finding Facebook app called Shopycat. The app enables users to take the likes, shares and interests of friends and turn them into intelligent gift recommendations.

Search plus social equals richer shopping experiences

The store of the future has yet to be imagined if Venky Harinarayan, SVP Walmart Global eCommerce and Head, @WalmartLabs, is correct. His organization is experimenting with integrating social, search and shopping experiences for both retailers and consumers.