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

Article 2026-07-27

Datacom vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature Datacom Rackspace Technology
Overall Score3.13.0
TypeGlobal EnterpriseUS Cloud MSP
Employees5000-600014000
Founded19651999
HeadquartersSydney, NSW (NZ HQ: Auckland)San Antonio, Texas, USA
RevenuePrivate$3.0B
Salary Range$75,000 - $160,000$50,000 - $140,000
SpecialtiesManaged Services, Cloud Infrastructure, Data Centre, Application DevelopmentManaged 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 FlagsPrivately held Ò€” no PE pressure, no quarterly earnings
Low offshoring (~20%) Ò€” most work delivered locally
Genuine work-life balance in most teams
Rarely does mass layoffs Ò€” stable employment
Largest locally-owned IT company in Australia
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 (A$85-95K average vs A$128-138K market)
Career stagnation Ò€” 'dead man's shoes' culture
Internal politics favour tenure over talent
Graduate program used as cheap labour pipeline
Manager quality varies wildly between teams
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 ProsStability Ò€” private ownership means no restructuring cycles
Work-life balance is genuinely good
Local delivery Ò€” your job isn't being offshored
Good graduate programs with real mentorship
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 ConsSalaries are 20-30% below market rate
Career progression is slow Ò€” 'dead man's shoes'
Manager quality varies wildly Ò€” your experience depends on your boss
Innovation is limited by risk-averse culture
Internal politics favour loyalty over competence
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 Global Enterprise 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.