Rackspace buys RelationEdge, adding SaaS services to portfolio

Rackspace on Thursday announced it’s acquiring RelationEdge, a Salesforce consulting partner that will add SaaS expertise to Rackspace’s IT-as-a-Service portfolio. Terms of the deal were not disclosed. RelationEdge, founded in 2013 in San Diego, California, is a privately held company that helps businesses leverage Salesforce technology, improve their business processes and use digital marketing to improve customer engagement.

RelationEdge has offices in a dozen cities across the US, 125 employees, and it is profitable. Under Rackspace’s ownership, RelationEdge will keep its brand and current leadership, operating with significant independence. Gerard Brossard, EVP and general manager of Rackspace Application Services, said the acquisition came in response to customer demand.

“Enterprise and midmarket companies are increasingly deploying SaaS applications to enhance business processes across many departments, from sales and marketing to customer service, operations, HR, and finance,” he said in a statement. “These applications are powerful, but also complex to implement and costly to continually keep up-to-date.”

Since privatizing in 2016, Rackspace has pivoted away from competing as a cloud provider and has instead focused more squarely on customer support services.

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