Rackspace Acquires RelationEdge, Adding to IT Customer Management

San Antonio—Cloud computing giant Rackspace has acquired a company that helps other businesses implement and use the Salesforce software. The deal expands Rackspace’s focus on helping companies use software and computing services, including those of cloud computing businesses it historically considered competitors.

Rackspace paid an undisclosed amount for RelationEdge, a San Diego-based software-as-a-service provider focused on aiding Salesforce users. RelationEdge and its 125 employees will remain largely independent, and will stay in California, Rackspace said in a news release.

San Antonio-based Rackspace is building out its portfolio of software-focused customer service offerings, which the company notes are becoming a bigger part of everyday business operations. Though Rackspace had historically operated as both a cloud computing provider and customer service company, it began focusing mostly on customer service offerings for other cloud computing companies including Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT), as they took control of the cloud computing market.

That continued after Rackspace was acquired by affiliates of Apollo Global Management in 2016 for $4.3 billion. Tide Rock Ventures was an investor in RelationEdge, according to the news release.

Salesforce provides customer relationship management and marketing software.

David Holley is Xconomy's national correspondent based in Austin, TX. You can reach him at dholley@xconomy.com Follow @xconholley

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