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Dell Medical School Taps Rackspace for Industry-Disrupting Cloud Strategy: Building an Academic Medical Center Without Traditional Data Centers

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Rackspace Technology (NASDAQ: RXT) has announced a strategic partnership with Dell Medical School at The University of Texas at Austin to provide comprehensive IT infrastructure and managed services. Dell Med will become the first academic medical center to go fully cloud-native, with Rackspace managing its Epic Electronic Health Record (EHR) system and other healthcare-related data center needs.

The partnership marks a significant shift in healthcare IT infrastructure, as Dell Med plans to build a new academic medical center without traditional physical data centers. Rackspace will provide a fully managed service model, ensuring secure and compliant cloud services with built-in redundancy for patient safety and system resilience.

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Positive

  • First-of-its-kind partnership to create a fully cloud-native academic medical center
  • Strategic positioning in the healthcare sector with Epic EHR system management
  • Long-term contract with a prestigious medical institution
  • Expansion of Rackspace's managed services portfolio in healthcare

Negative

  • High regulatory compliance requirements in healthcare sector
  • Significant responsibility for critical healthcare data management

News Market Reaction 9 Alerts

-4.96% News Effect
-$16M Valuation Impact
$311M Market Cap
1.3x Rel. Volume

On the day this news was published, RXT declined 4.96%, reflecting a moderate negative market reaction. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $16M from the company's valuation, bringing the market cap to $311M at that time.

Data tracked by StockTitan Argus on the day of publication.

Austin medical school becomes first to go fully cloud-native with Rackspace's managed services, transforming healthcare IT infrastructure model

SAN ANTONIO, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading end-to-end hybrid cloud and AI solutions company, today announced it has partnered with Dell Medical School at The University of Texas at Austin (Dell Med) as a strategic IT infrastructure provider, hosting and managing healthcare related data center needs, including managing its Epic® Electronic Health Record (EHR) and adjacent workloads. The strategic partnership will be part of the transformative journey to establish Dell Med as the anchor of a world-class academic medical center serving Central Texas and beyond.

As part of its digital transformation, Dell Med selected Rackspace as a strategic partner to deliver a fully managed service model for the institution’s hosted data center and Epic deployment. This partnership lays the foundation for Epic to serve as the medical center’s comprehensive EHR platform across all future clinics and hospitals.

"Partnering with Rackspace for our hosted data center needs is crucial to our continued success, and the Epic deployment will be one of the first big steps in our joint journey forward," said Michael Ryan, CIO and Chief Administrative Officer at Dell Med. "The Rackspace team will not only provide primary hosting for our Epic deployment and other application workloads but also a fully managed service model that ensures a seamless transition and operational excellence."

The partnership highlights a joint commitment to pursuing transformative initiatives that enhance healthcare service delivery, medical education and research. Leveraging Rackspace’s infrastructure and expertise in Epic deployments, Dell Med aims to revolutionize healthcare access and delivery, significantly advancing patient care standards.

"Transformative solutions like ours can significantly improve operational efficiencies, and we are proud to work alongside such a prestigious organization," said Harjott Atrii, Senior Vice President and Chief Revenue Officer for Private Cloud, Rackspace Technology. "We recognize the importance of being a trusted partner in healthcare technology, and our experience in delivering critical capabilities positions us to effectively support Dell Med’s mission, demonstrating how advanced cloud solutions can redefine Healthcare IT."

Future Plans
As part of its long-term digital strategy, Dell Med plans to build a new academic medical center without a traditional physical data center. Rackspace will host and manage critical components of the system’s digital infrastructure, including Epic and other clinical workloads, through secure, compliant cloud services designed with redundancy to support patient safety, regulatory standards and system resilience.

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:
Cheryl Amerine
publicrelations@rackspace.com

A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/c6ab793c-027c-41bc-9bcf-6387af19e24b


FAQ

What is the partnership between Rackspace Technology (RXT) and Dell Medical School?

Rackspace will serve as Dell Med's strategic IT infrastructure provider, managing their Epic Electronic Health Record system and healthcare-related data center needs, making it the first fully cloud-native academic medical center.

How will Rackspace (RXT) manage Dell Medical School's data center needs?

Rackspace will provide a fully managed service model for hosted data center and Epic deployment, with secure, compliant cloud services designed with redundancy for patient safety and regulatory standards.

What makes the Rackspace (RXT) and Dell Medical School partnership unique?

This partnership represents the first academic medical center to be built without traditional physical data centers, operating entirely on cloud-native infrastructure.

Who will manage Dell Medical School's Epic Electronic Health Record (EHR) system?

Rackspace Technology will manage Dell Med's Epic EHR system deployment and adjacent workloads as part of their comprehensive IT infrastructure services.

What are the main benefits of Rackspace's (RXT) partnership with Dell Medical School?

The partnership aims to revolutionize healthcare access and delivery through improved operational efficiencies, enhanced patient care standards, and advanced cloud solutions for healthcare IT.
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