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

Article 2026-07-27

Rackspace Technology vs Somerville Group

A detailed comparison of two major Australian Managed Service Providers.

Feature Rackspace Technology Somerville Group
Overall Score3.03.4
TypeUS Cloud MSPEducation & Enterprise
Employees14000200-400
Founded19991983
HeadquartersSan Antonio, Texas, USAMelbourne, VIC
Revenue$3.0BPrivate
Salary Range$50,000 - $140,000$70,000 - $145,000
SpecialtiesManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOpsEducation IT, Managed Services, Cloud, Apple Solutions
CertificationsAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001Microsoft Partner, Apple Partner, Cisco Partner, VMware Partner
Green FlagsPioneer 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
Good work-life balance
Stable employment
Government focus
Red FlagsFinancial 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
Below-market salaries
Can be bureaucratic
Limited career progression
Worker ProsStrong 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
Work-life balance
Stable
Government work
Worker ConsFinancial 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
Below-market pay
Bureaucratic
Limited progression

Which MSP Should You Choose?

Both US Cloud MSP and Education & Enterprise 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.