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AC3 vs Rackspace Technology: Which MSP is Better? | The MSP Playbook

Article 2026-07-27

AC3 vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature AC3 Rackspace Technology
Overall Score3.73.0
TypeCloud / Public SectorUS Cloud MSP
Employees200-30014000
Founded20001999
HeadquartersSydney, NSWSan Antonio, Texas, USA
RevenuePrivate$3.0B
Salary Range$75,000 - $155,000$50,000 - $140,000
SpecialtiesAWS, Azure, Cloud Migration, Government CloudManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsAWS Partner, Microsoft Partner, VMware Partner, ISO 27001AWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsGood work-life balance
Strong cloud focus
Stable employment
Pioneer of 'Fanatical Support' β€” differentiated managed cloud support model
Strong multi-cloud expertise across AWS, Azure, GCP
Good for early-career cloud engineers seeking certification support
Private equity backing provides capital for growth
Red FlagsBelow-market salaries
Limited career progression
Can be risk-averse
Financial distress β€” loss of founder leadership, multiple restructurings
Below-market compensation across most roles
PE ownership creates margin pressure and cost-cutting mentality
Massive layoff cycles (2022: 10%, 2023: 15%, 2024: ongoing)
Awful Glassdoor rating (3.0) β€” among worst of major MSPs
Business model disruption from hyperscalers going direct to customers
Worker ProsCloud focus
Work-life balance
Stable
Strong multi-cloud managed services expertise
Fanatical Support training instills good customer service habits
Cloud certification support and exam coverage
Good for early-career cloud engineers building a resume
Worker ConsBelow-market pay
Limited progression
Risk-averse
Financial instability β€” multiple layoff rounds and loss of founder CEO
Below-market salaries across all roles
PE ownership drives constant cost-cutting and margin pressure
Hyperscalers (AWS, Azure) going direct β€” squeezing Rackspace's business model

Which MSP Should You Choose?

Both Cloud / Public Sector and US Cloud MSP have strengths and weaknesses. Your choice depends on your priorities β€” whether that's career growth, salary, work-life balance, or technical exposure.

Use the side-by-side comparison tool for a deeper look, or check out individual profiles for detailed employee reviews.