Rackspace said Thursday it has agreed to acquire TriCore Solutions, an application management specialist with global reach that will help the managed cloud provider move its capabilities up the enterprise stack.
The biggest acquisition in Rackspace's history, revealed a day after a new CEO was named to helm the company, marks the latest of several strategic shifts for the cloud hosting and managed services provider based in San Antonio, Texas.
TriCore focuses on managing enterprise applications – particularly mission-critical Oracle E-Business Suite and SAP solutions. The Boston-based solution provider offers technical support, monitoring, provisioning and custom development services to integrate those systems with other workloads.
Application management is a business that Rackspace customers had been asking the company to enter, Rackspace vice president of corporate development Matt Bradley told CRN.
Rackspace had been resisting moving up the stack from infrastructure to apps, he said, but ultimately couldn't ignore the multi-billion-dollar opportunity presented by the rapidly growing global ERP market that Oracle and SAP ecosystems dominate.
Like Rackspace, TriCore is closely aligned with Amazon Web Services, but also partners with Amazon's two major hyper-scale competitors: Microsoft Azure and Google Cloud.
There are other synergies, said Bradley.
"They, like us, view professional services as something that is important to having a long-term managed services revenue stream," Bradley said, adding about 85 percent of TriCore revenue comes from managed services and the remaining 15 percent from consulting.
The culture was also a good fit – in line with Rackspace's casual workplace attitude and emphasis on onboarding and training employees to develop skills around bleeding-edge technologies, he said.
Beyond its Boston headquarters, TriCore has offices in Wisconsin, Pennsylvania and India.