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

Rhea-AI Summary

Rackspace Technology (NASDAQ: RXT) has announced a transformative 10-year, multi-million-dollar partnership with Seattle Children's Hospital to provide comprehensive managed cloud solutions. The agreement focuses on transforming the hospital's data center operations and modernizing infrastructure for clinical and non-clinical workloads through Rackspace's Healthcare Cloud.

Through Rackspace's Cost and Productivity Optimization (CPO) assessment framework, the partnership aims to streamline IT operations, phase out legacy technologies, and create a standardized managed services model across private and public clouds. Rackspace will manage Seattle Children's workloads on its private cloud and major platforms like Azure and AWS.

The implementation is expected to deliver enhanced agility, reliability, scalability, and security while significantly reducing IT costs. These savings will allow Seattle Children's to maintain focus on their core mission of enhancing patient care and advancing pediatric research initiatives.

Positive

• 10-year multi-million-dollar contract securing long-term revenue
• Expansion into healthcare sector with major institutional client
• Comprehensive service agreement covering private and public cloud management
• Cost reduction potential demonstrating value proposition to healthcare clients

Negative

• None.

Rackspace’s data center transformation program supports Seattle Children’s focus on innovation and enhancing patient care

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

FAQ

What is the duration and value of Rackspace's (RXT) agreement with Seattle Children's Hospital?

Rackspace Technology has signed a 10-year, multi-million-dollar managed cloud agreement with Seattle Children's Hospital.

What services will Rackspace (RXT) provide to Seattle Children's Hospital?

Rackspace will provide end-to-end managed cloud solutions, including data center transformation, infrastructure modernization, and management of workloads across private cloud and platforms like Azure and AWS.

How will Seattle Children's benefit from the Rackspace (RXT) partnership?

The partnership will enhance agility, reliability, scalability, and security while significantly reducing IT costs, allowing the hospital to focus more resources on patient care and pediatric research.

What technology platforms will Rackspace (RXT) manage for Seattle Children's?

Rackspace will manage Seattle Children's workloads on its private Healthcare Cloud as well as major platforms including Azure and AWS.

How did Rackspace (RXT) assess Seattle Children's IT infrastructure needs?

Rackspace used its Cost and Productivity Optimization (CPO) assessment framework to evaluate spending across IT infrastructure and data center expenditures.