Rackspace is expanding its presence in the emerging Asia-Pacific cloud region.
The San Antonio-based cloud provider has opened a new office in Singapore and plans to add more engineers and a data center in the future to help manage growing cloud use in Southeast Asia.
With revenue expected to surpass $10 billion this year, according to research firm IDC, the demand for cloud services in the Asia-Pacific region is booming.
And Rackspace is positioning itself to take advantage of that huge market opportunity, while also trying to keep pace with other cloud providers already situated with bigger footprints in the region.
Considered one of the most important financial hubs in Asia, Singapore is also home to regional headquarters for public cloud giants such as Amazon, Microsoft and Google. But Rackspace had long supported most of its Southeast Asian and Singapore-based customers from Hong Kong, where the company has an office and a data center.
That, however, is going to be more difficult to do moving forward because data sovereignty laws in Singapore are changing, according to Computer Weekly.
Rackspace’s Singapore office is currently staffed with a mix of Rackers who have relocated from Hong Kong and some locals. Moving forward, the company will bring on more engineering talent and people who can provide local support, said Chief Technology Officer John Engates.
A data center in Singapore, to accompany Rackspace’s existing APAC-based data centers in Hong Kong and Australia, is also in the plans once the company completes its acquisition of cloud rival Datapipe.
“The investment in Asia is going to grow organically,” Engates said. “Joe Eazor, our new CEO who has had previous experience in the region, has expectations it will be a significant part of the future growth of our company.”