Rackspace Technology reported second-quarter revenue of $670 million, up 1% year over year, and maintained its full-year 2026 guidance. The company expects positive full-year free cash flow of $50 million to $70 million and is expanding its enterprise AI infrastructure strategy, including an AMD-backed plan to deploy 30 megawatts of compute capacity by 2028. Rackspace expects the initiative to generate $450 million to $600 million in annual revenue at full capacity, with enterprise AI EBITDA margins above 50%. Private Cloud revenue rose 5% to $263 million, helped by contract-related revenue timing, while Public Cloud revenue fell 2% to $407 million. Despite the decline, Public Cloud margins improved as Rackspace shifted toward higher-value AI, data and managed-services work.
11:11 Systems Acquires Select IBM VMware Cloud Service Provider Enterprise Customers
11:11 Systems has completed the acquisition of select IBM VMware Cloud Service Provider enterprise customers, marking its eighth VMware-related transaction and eleventh acquisition overall. The deal expands the managed infrastructure provider's global reach across North America, EMEA, APAC and South America and strengthens its position as the largest privately held global VMware Cloud Service Provider partner. 11:11 Systems has previously acquired seven major VMware-based businesses — iland Cloud, Green Cloud Defense, Unitas Global, Sungard Availability Services, Faction, Ntirety and Digital Sense. Broadcom President of the Infrastructure Software Group Ram Velaga said 11:11 Systems, with more than 6,000 customers and a portfolio spanning cloud, connectivity and security, is well positioned to support enterprises modernising critical workloads on VMware Cloud Foundation. Moelis & Company LLC and Fifth Third Securities, Inc. served as financial advisors to 11:11 Systems, with Cooley LLP as legal advisor; the terms of the transaction were not disclosed.
AVGO · Demand · Positive Broadcom's VMware Cloud Service Provider business gains a committed partner as 11:11 Systems acquires select IBM VMware CSP enterprise customers and expands its VMware Cloud Foundation support base.
IBM · Competition · Neutral IBM is divesting select VMware Cloud Service Provider enterprise customers to 11:11 Systems, a competitive shift in the managed VMware cloud market.
MC · Capital · Neutral Moelis & Company served as a financial advisor on the transaction, a passing advisory role with undisclosed terms.
Cloudflare Becomes Public Certificate Authority, Launches Basin Data Platform
Cloudflare has become a public Certificate Authority, issuing post-quantum ready TLS certificates to external organizations. The company also introduced Basin, an open-source serverless data platform designed to handle application data without dedicated infrastructure management. In addition, Cloudflare entered a major partnership with Deutsche Telekom to offer joint security and connectivity services to enterprise clients across Europe. The moves extend Cloudflare beyond protecting and accelerating traffic into owning key trust primitives and a neutral, open data layer, in contrast to more closed ecosystems at players like Amazon or Microsoft. The Deutsche Telekom tie-up deepens enterprise penetration through large multi-product deals while testing a flagged risk around customer concentration and execution at scale.
NET · Demand · Positive Major partnership with Deutsche Telekom to offer joint security and connectivity services deepens enterprise penetration in Europe.
NET · Technology · Positive Cloudflare became a public Certificate Authority issuing post-quantum ready TLS certificates and launched the open-source Basin data platform.
DTE.XETRA · Demand · Positive Deutsche Telekom entered a major partnership with Cloudflare to offer joint security and connectivity services to European enterprise clients.
RapidScale Named AHEAD's Strategic VMware Cloud Service Provider Partner
RapidScale has been selected by AHEAD as its strategic VMware Cloud Service Provider partner, the company announced. The partnership unites RapidScale's managed cloud platform and operational expertise with AHEAD's infrastructure and transformation capabilities to deliver stability, continuity and a clear VMware roadmap for customers, in response to changes to Broadcom's partner program for VMware CSPs. AHEAD will continue as a VMware reseller while leveraging RapidScale's VCSP capabilities, and RapidScale becomes AHEAD's sole VMware private cloud managed services partner. AHEAD sellers will offer RapidScale's portfolio of private cloud solutions, with the near-term focus on helping customers maintain stability and run in place. RapidScale CEO Duane Barnes said the partnership reinforces a reliable, long-term path forward, citing the company's recognition earlier this year as the 2025 VMware Cloud Foundation as a Service Partner of the Year by Broadcom. AHEAD Executive Vice President of Services Keith Odom said the selection represents a clear, long-term commitment to its VMware clients, noting AHEAD is a Broadcom Pinnacle Partner recently recognized with four 2025 Broadcom Partner Awards.
AHEAD · Demand · Positive AHEAD selected RapidScale as its strategic VMware Cloud Service Provider partner and will offer RapidScale's private cloud solutions to its customers.
RapidScale · Demand · Positive RapidScale becomes AHEAD's sole VMware private cloud managed services partner, gaining AHEAD's sellers to offer its private cloud portfolio.
AVGO · Competition · Neutral Article cites changes to Broadcom's VMware CSP partner program as the backdrop prompting AHEAD's RapidScale partnership, but no direct Broadcom impact is stated.
Unauthorized Access Hits SoftBank Subsidiary IDC Frontier, Municipal and Corporate Websites Unreachable
IDC Frontier, a SoftBank subsidiary that provides cloud services, announced on the 7th that it suffered unauthorized access by a third party, causing an outage in its IDCF Cloud service for municipalities and businesses. The outage occurred around 3:40 a.m. that day, leaving some services unavailable. The company said it received an external ransomware attack, and the cloud management platform automatically executed a shutdown. The company has not disclosed details of its service customers, but numerous websites, including those of Ibaraki Prefecture, the city of Kodaira in Tokyo, Jiji Press, and Tobu Zoo, became impossible to view or update. To prevent secondary damage and data leaks, the company has cut off its network and is working to identify the detailed intrusion route while rushing to set up an alternative environment.
IDC Frontier Inc. · Regulation · Negative IDC Frontier itself suffered the unauthorized access and ransomware attack, forcing a network shutdown and service outage.
9434.JP · Regulation · Negative Its subsidiary IDC Frontier was hit by unauthorized access and ransomware, creating regulatory/legal exposure for SoftBank Corp.
9984.JP · Regulation · Negative Subsidiary IDC Frontier suffered a ransomware/unauthorized-access breach, exposing SoftBank Group to legal and regulatory fallout.
PROEN secures BOI investment promotion card for Cloud business with 8-year corporate tax exemption
PROEN Corp, or PROEN, has received an investment promotion card from the Board of Investment, or BOI, for its Cloud Service business, granting an exemption from corporate income tax on net profits from the promoted business for up to 8 years, with the total exempted tax amount not exceeding 100% of the investment, excluding land costs and working capital, along with import duty benefits on machinery under specified conditions. Chief Executive Officer Kittiphun Sribua-iam disclosed that this BOI privilege extends the company's digital infrastructure business and opens the opportunity to generate increased revenue from Cloud services in the future. The promotion card requires the project to have an investment of no less than 282.86 million baht, excluding land costs and working capital, and to commence operations within 36 months from the date the promotion card is issued. The project scope covers Cloud Service offerings including Infrastructure as a Service, or IaaS, and Platform as a Service, or PaaS, along with conditions regarding the Data Center, connectivity systems, and standards for security and service provision. The company also plans to organize training to develop knowledge and skills in using Cloud Service continuously every quarter for a period of 3 years from the date the promotion card is received. The Cloud business is expected to help create a new revenue base and support the recovery of operating results in the period ahead.
PROEN.BK · Regulation · Positive PROEN received a BOI investment promotion card granting an 8-year corporate income tax exemption and import duty benefits for its Cloud Service business.
ST Dou Shen signs computing power contract worth about 800 million yuan for 60 months
On the evening of September 30, ST Dou Shen (300010) disclosed that its wholly owned subsidiary Dou Shen Hong Kong recently signed a Cloud Computing Service Agreement with a certain customer, with a total contract value of about 119 million US dollars, equivalent to about 800 million yuan. The service period of the agreement is 60 months, and the customer will prepay 40 percent of the total order amount as agreed and pay service fees monthly. ST Dou Shen did not disclose specific customer information, stating that the contract involves confidentiality clauses and that it has completed internal procedures for exemption from disclosure of confidential information. The company said the contract is a large-scale computing power service project for the implementation of its intelligent computing service business, an important practice in cultivating a second growth curve, and reflects the extension of its business from AI applications to the computing power infrastructure field. Wind data shows that since mid-August 2026, ST Dou Shen's stock price has risen by more than 120 percent cumulatively.
豆神香港 · Demand · Positive Dou Shen Hong Kong itself signed the ~800M yuan 60-month cloud computing service agreement with a customer, with 40% prepayment.
300010.CS · Demand · Positive Wholly owned subsidiary Dou Shen Hong Kong signed a ~$119M/800M yuan 60-month cloud computing service contract with a customer, a large-scale computing power service order.