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

Article 2026-07-27

Kyndryl Australia vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature Kyndryl Australia Rackspace Technology
Overall Score2.83.0
TypeInfrastructure Spin-offUS Cloud MSP
Employees1000-200014000
Founded20211999
HeadquartersSydney, NSW (Global HQ: New York, NY)San Antonio, Texas, USA
RevenuePrivate$3.0B
Salary Range$75,000 - $140,000$50,000 - $140,000
SpecialtiesManaged Infrastructure, Cloud, Mainframe, Enterprise MigrationManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsMicrosoft Partner, AWS Partner, SAP PartnerAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsFresh start Ò€” not burdened by IBM's bureaucracy
Focus on infrastructure services
Some teams have genuine technical depth
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 FlagsSpun off from IBM Ò€” still finding its identity
Inherited IBM's legacy contracts and problems
Below-market salaries
High offshore ratio
Uncertain strategic direction
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 ProsFresh start Ò€” can build culture from scratch
Infrastructure focus is clear
Some technical teams are excellent
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 ConsInherited IBM's problems
Below-market salaries
Uncertain strategic direction
High offshore ratio
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 Infrastructure Spin-off 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.