San Antonio-based technology company Rackspace will soon manage and host data for UT Austin's Dell Medical School. When Rackspace increases its push into the growing healthcare industry, major deals arise.
In a call with investors on August 7, CEO Amar Maletira said Rackspace has been working on the sector more widely among its mid-sized clients since 2022.
Maletira said Rackspace increased revenues from services to the healthcare industry by 60% between April and June compared to the same period last year.
Still, the company is facing a decline in overall revenue, according to its latest quarterly report. In federal filings in April, May and June 2025, Rackspace noted lower revenues compared to the same period in 2024.
That's a trend that has been consistent for several years. In the second quarter of 2022, Rackspace reported revenue of $772.2 million. The revenue was $666 million over the same period this year, according to federal filings. Rackspace reported a loss of $54.5 million between April and June 2025.
Maletira remained optimistic about the final two quarters of 2025. Rackspace is looking to increase its AI offering and sees a longer contract on its phone call on August 7th.
The agreement with Dell Medical School indicates that the company is heading in the right direction, spokesman Cheryl Amerine said in an emailed statement.
“Rackspace's Go-to-Market execution continues to be strong and reflects on the continued progress of our transformation,” she said.
Amerine added that working with Dell Med will help advance research into health services and healthcare. This type of transaction is typical of Rackspace, said Harjott Atrii, senior vice president who oversees Rackspace's private cloud operations.
“This is rinsing and repetition of such multiple transactions,” he said.
The terms of the transaction have not been disclosed, but it demonstrates the company's expertise and commitment to serving healthcare clients, Atrii said.
According to a press release that announced the agreement, Rackspace will host and manage healthcare data for Dell Medical School by helping you work with Epic, an electronic system that manages patient records. This includes hosting Epic and other data in a private cloud that new medical centers are building.
“In terms of our commitment to healthcare, this is a step forward for us,” Atli said.
Atrii said Rackspace understands the needs of healthcare providers when managing technology and the cloud, working with Epic, and complying with federal laws regarding the security and sensitivity of healthcare data.
