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

Article 2026-07-27

Rackspace Technology vs Telstra Purple

A detailed comparison of two major Australian Managed Service Providers.

Feature Rackspace Technology Telstra Purple
Overall Score3.03.5
TypeUS Cloud MSPTelco / Enterprise
Employees140005000-10000
Founded19992017
HeadquartersSan Antonio, Texas, USASydney, NSW
Revenue$3.0BPrivate
Salary Range$50,000 - $140,000$80,000 - $170,000
SpecialtiesManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOpsManaged Infrastructure, Cloud Services, Cybersecurity, Consulting
CertificationsAWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001Microsoft Partner, AWS Partner, Cisco Partner, ServiceNow 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
Telstra brand provides stability and scale
ASX-listed benefits structure
Strong telecommunications backbone
Good vendor partnerships
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
550 roles cut in July 2025 Ò€” largest restructure in years
Telco culture dominates Ò€” IT services are secondary
Contractor dependency creates inconsistency
Bureaucratic decision-making slows everything down
Legacy telco culture persists in some divisions
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
Telstra compensation structure is genuinely good
ASX-listed stability Ò€” won't be sold or acquired
Access to Telstra's network and enterprise relationships
Brand recognition opens doors
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
550 roles cut in 2025 Ò€” even Telstra isn't immune
IT services are secondary to the telco business
Bureaucratic culture slows innovation
Contractor dependency creates quality inconsistency
Career progression limited unless you're in the telco side

Which MSP Should You Choose?

Both US Cloud MSP and Telco / 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.