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Rackspace Technology and SMPL-C Announce Strategic “Better Together” Partnership to Accelerate CMMC Compliance for Government Contractors

1. Rackspace and SMPL-C form a strategic partnership for compliance automation. 2. Partnership aids federal contractors in meeting evolving CMMC requirements. 3. Clients gain access to automation and secure, CMMC-aligned cloud environments. 4. This collaboration aims to reduce compliance costs for the defense sector. 5. Rackspace's advisory support enhances companies' journey through CMMC certification.

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Why Bullish?

Announcing partnerships in compliance automation aligns with growing federal spending on cybersecurity, presenting potential revenue growth for RXT. Historically, similar partnerships (e.g., with AWS) have positively impacted share prices; this trend could repeat as RXT capitalizes on increasing government compliance demands.

How important is it?

The article highlights a significant strategic move that contributes to RXT's market positioning in compliance services, improving prospects for growth and profitability, especially within the government contracting space.

Why Long Term?

The partnership enhances RXT's service offerings, likely translating into sustained revenue growth from federal contracts over several quarters as compliance regulations strengthen.

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SAN ANTONIO, Aug. 26, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology®, a leading end-to-end hybrid cloud and AI solutions company, and SMPL-C, an AI-powered compliance automation platform, today announced their “Better Together” strategic partnership. The partnership will be delivered through Rackspace Technology Government Solutions, the company’s specialized division focused on secure, CMMC-authorized cloud infrastructure and compliance services for federal, state and local agencies as well as the defense industry. This collaboration is designed to empower commercial enterprises working with the federal government to meet evolving Cybersecurity Maturity Model Certification (CMMC) requirements, unlocking new contract opportunities and securing existing ones. Federal compliance is no longer optional for contractors seeking to do business with the Department of Defense and other federal agencies. The new Rackspace-SMPL-C alliance ‘simplifies’ the path to compliance by integrating SMPL-C’s intelligent documentation and workflow engine with Rackspace Technology’s secure, CMMC-authorized cloud infrastructure and advisory-led services. “Too many organizations are stuck navigating compliance in silos, struggling with disconnected spreadsheets, manual processes, and costly delays,” said Rick Rosenburg, Vice President and General Manager at Rackspace Technology Government Solutions. “This partnership with SMPL-C creates a unified, client-first ecosystem that simplifies, accelerates, and strengthens the CMMC journey.” This partnership isn’t about handing off tools, it’s about co-owning success. Together, SMPL-C and Rackspace deliver automation, advisory support, and security operations under one roof, making the compliance journey understandable, repeatable, and achievable. "In a world where cybersecurity challenges continue to evolve, our innovative partnership seamlessly integrates a cutting-edge CMMC technical remedial security enclave with our AI-enabled CMMC documentation workflow engine, revolutionizing the way organizations tackle CMMC readiness," says Srikant Rachakonda, Founder and CEO. "By automating and streamlining the once tedious documentation process, this powerful collaboration not only fortifies a more holistic approach to CMMC compliance but also reduces CMMC costs for the defense sector." Enterprises Gain: Accelerated CMMC Readiness: Automate gap assessments, documentation, and evidence tracking for both Level 1 self-attestation and Level 2 certification.Secure Cloud Hosting: Leverage Rackspace’s CMMC-aligned environments and multicloud expertise across AWS and Azure.Contracting Agility: Gain access to Rackspace’s extensive portfolio of government contracting vehicles to reduce procurement friction.Ongoing Advisory and Support: Receive continuous guidance and remediation support from Rackspace’s Elastic Engineering for Security and SMPL-C’s secure AI-driven platform. About Rackspace Technology Rackspace Technology is a leading end-to-end, hybrid cloud and AI solutions company. We can design, build, and operate our customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products, and adopt innovative technologies. About SMPL-CSMPL-C is an intelligent compliance automation platform purpose-built for CMMC readiness. With secure, private LLMs, automated documentation tools, and centralized dashboards, SMPL-C simplifies the compliance process for contractors and service providers. Visit www.smpl-c.com for more information. Media Contact:Cheryl Amerinepublicrelations@rackspace.com

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