Rackspace shares -9.4% as Microsoft cuts Azure prices

Jan 15 2016 | By Ryan Foster

  • Following Amazon’s lead, Microsoft cut prices on its Azure cloud computing services, helping Rackspace reach new 52-week lows on high volume.
  • Microsoft exec Nicole Herskowitz wrote in a blog post: “We have had a longstanding commitment to make our prices comparable on commodity services like compute, storage, and bandwidth relative to Amazon Web Services. In keeping to this commitment, we are announcing price reductions up to 17% on the latest version of the popular Azure D-series virtual machines, Dv2 Virtual Machines. Dv2 Virtual Machines sport 35% faster CPUs than D “v1” virtual machines and are based on the newest generation Intel Xeon (Haswell) processors.”
  • Rackspace shares are now -27% YTD