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RackSpace acquires Jungledisk, SliceHost; Cloud market heats up

Mike Arington reporting...


Web hosting provider Rackspace has acquired JungleDisk, an online backup service, and Virtual Machine provider Slicehost in a deal designed to help bolster its offerings against top competitor Amazon Web Services. The announced acquisition price is $11.5 million in cash and stock, with the possibility of up to an additional $16.5 million depending on performance.

Jungle Disk is a file storage and backup service that up until now has relied on Amazon’s Simple Storage Service (S3). With the new announcement the company says that it will begin offering the service using Rackspace’s similar service Cloud Files, but will continue to support storage using Amazon with plans to support even more services in the future.

Slicehost offers developers “slices” in Xen-based virtual servers that are much cheaper and generally easier to use than a traditional dedicated server. The service is a direct competitor to Amazon’s Elastic Compute Cloud (EC2).


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