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Seattle Children's Signs a Transformative Multi-Year Managed Cloud Agreement with Rackspace Technology

1. Rackspace signs a 10-year, multi-million-dollar cloud partnership with Seattle Children's Hospital. 2. The deal modernizes data center operations and lowers IT costs for enhanced patient care. 3. Rackspace leverages its hybrid cloud strategy across private cloud and platforms like Azure and AWS.

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Why Bullish?

The multi-year, high-value contract boosts revenue visibility and market credibility. Similar strategic partnerships in the tech sector have historically buoyed stock prices.

How important is it?

This contract is significant for RXT as it guarantees recurring income, enhances its position in the healthcare sector, and validates its hybrid cloud expertise.

Why Long Term?

A 10-year agreement ensures sustained revenue streams and operational impact. Long-term contracts in cloud services have previously driven enduring growth.

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SAN ANTONIO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading end-to-end, hybrid cloud and AI solutions company, today announced a significant partnership with Seattle Children's Hospital. Through the 10-year, multi-million-dollar agreement, Rackspace will provide an end-to-end managed cloud solution to transform Seattle Children’s data center operations and modernize their infrastructure for clinical and non-clinical workloads, enabling them to shift to Rackspace’s state-of-the-art Healthcare Cloud. The comprehensive managed cloud service agreement will deliver enhanced agility, reliability, scalability, and security while significantly reducing IT costs for Seattle Children’s. The savings will enable Seattle Children’s to continue focusing on their mission of enhancing patient care and advancing pediatric research initiatives. “Seattle Children's is committed to our mission of delivering hope, care, and cures to help every child lead a healthier, more fulfilling life,” said Dr. Zafar Chaudry, Senior Vice President, Chief Digital Officer, and Chief AI and Information Officer at Seattle Children's. “The integration of cutting-edge technology is a critical component to delivering exceptional patient care. This collaboration with Rackspace will not only streamline our IT operations but also create capacity for resources to expand our services and enrich the patient experience.” Rackspace deployed its Cost and Productivity Optimization (CPO) assessment framework, where Seattle Children’s and Rackspace evaluated spending across IT infrastructure and data center expenditures. The assessment revealed that Rackspace’s data center transformation solution would simplify operations, phase out legacy technologies, and create a standardized managed services model across private and public clouds. Leveraging its standardized operating model combined with deep expertise in hybrid cloud environments, Rackspace will manage Seattle Children's workloads on its private cloud as well as on major platforms like Azure and AWS. “It is an honor to partner with Seattle Children's in support of its vital mission, ultimately improving patient care and fostering advancements in pediatric research,” said Amar Maletira, Chief Executive Officer of Rackspace Technology. “This agreement lays the foundation for a modern IT infrastructure on Rackspace’s Healthcare Cloud, blending managed services with hybrid cloud solutions to enhance security, efficiency, and operational resilience.” PV SubbaRao, Senior Vice President of Global Healthcare and Life Sciences at Rackspace, added, “Our collaboration will be a seamless process, focused on reducing costs and aligning with Seattle Children's mission and future growth. Leveraging hybrid cloud solutions across diverse locations ensures availability, performance, and automation, allowing Seattle Children's to maximize its technological capabilities while driving innovation on behalf of the patients and families it serves.” 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.   Media Contact: Natalie Silva, publicrelations@rackspace.com

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