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

Article 2026-07-27

Leidos vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature Leidos Rackspace Technology
Overall Score3.73.0
TypeUS Defense / IT ServicesUS Cloud MSP
Employees4800014000
Founded2013 (spin-off from SAIC)1999
HeadquartersReston, Virginia, USASan Antonio, Texas, USA
Revenue$16.0B$3.0B
Salary Range$70,000 - $180,000$50,000 - $140,000
SpecialtiesDefense IT, Cybersecurity, AI & Data, C4ISR, Digital Transformation, BiomedicalManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsISO 27001, FedRAMP, NIST 800-53, CMMI Level 5, AWS PartnerAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsDominant US defense and intelligence IT contractor β€” mission-critical work
Strong technical depth in AI, cybersecurity, C4ISR, and biomedical
Fortune 500 stability with consistent revenue and earnings growth
Excellent benefits and pension for US-based defense sector employees
Science and engineering culture from heritage roots (SAIC spin-off)
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 FlagsSecurity clearance requirement limits talent pool significantly
US-based only β€” limited international career mobility
Government contracting bureaucracy slows innovation and agility
Below-market compensation compared to commercial tech sector
Ethical concerns around defense work may conflict with personal values
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 ProsMission-critical work with national security impact
Excellent benefits and pension for US defense employees
Fortune 500 financial stability
Deep AI, cyber, and C4ISR technical depth
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 ConsSecurity clearance process is slow and restrictive
Below-market comp vs commercial tech
Limited international exposure β€” US-centric
Government contracting red tape slows everything
Defense work ethics may conflict with personal values
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 US Defense / IT Services 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.