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Data#3 vs Rackspace Technology: Which MSP is Better? | The MSP Playbook

Article 2026-07-27

Data#3 vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature Data#3 Rackspace Technology
Overall Score3.83.0
TypePublicly Listed GiantUS Cloud MSP
Employees1500-200014000
Founded19771999
HeadquartersBrisbane, QLDSan Antonio, Texas, USA
Revenue$884.8M$3.0B
Salary Range$80,000 - $160,000$50,000 - $140,000
SpecialtiesMicrosoft Solutions, Cloud, Managed Services, Software LicensingManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsMicrosoft Partner, AWS Partner, Cisco Partner, VMware PartnerAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsASX-listed (ASX: DDD) Ò€” financial transparency
Strong Australian focus Ò€” no offshoring agenda
Good work-life balance
Profitable and growing
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 at senior levels
Government contract dependency
Limited international exposure
Acquisition-driven growth creates integration challenges
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 ProsASX-listed transparency Ò€” you know the numbers
Australian-focused Ò€” your job isn't being offshored
Profitable and growing Ò€” stability
Good work-life balance in most teams
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 salaries at senior levels
Government contract dependency creates cyclicality
Limited international exposure
Acquisition integration can be bumpy
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 Publicly Listed Giant 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.