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IBM Australia (Managed Services) vs Rackspace Technology: Which MSP is Better? | The MSP Playbook

Article 2026-07-27

IBM Australia (Managed Services) vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature IBM Australia (Managed Services) Rackspace Technology
Overall Score3.23.0
TypeGlobal Consulting / CloudUS Cloud MSP
Employees3000-500014000
Founded19321999
HeadquartersSydney, NSW (Global HQ: Armonk, NY)San Antonio, Texas, USA
RevenuePrivate$3.0B
Salary Range$85,000 - $160,000$50,000 - $140,000
SpecialtiesManaged Services, Cloud, AI & Data, Enterprise ApplicationsManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsIBM Partner, Microsoft Partner, AWS Partner, SAP PartnerAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsGlobal brand recognition
Exposure to enterprise-scale projects
Good certification and training programs
Strong vendor partnerships
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 FlagsPerpetual restructuring Ò€” 'Project Chrome' and successors
Below-market salaries for managed services roles
High offshore ratio
Legacy technology stacks in many contracts
Bureaucratic culture
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 ProsIBM brand opens doors
Enterprise-scale project exposure
Good training and certification
Global opportunities
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 ConsConstant restructuring
Below-market salaries
High offshore ratio
Bureaucratic culture
Legacy technology
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 Consulting / Cloud 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.