San Antonio-based technology company Rackspace will soon manage and host data for UT Austin’s Dell Medical School. The major deal comes as Rackspace increases its push into the growing health care industry.
In an Aug. 7 call with investors, CEO Amar Maletira said Rackspace has increased its work into the sector, and among mid-size customers more broadly since 2022.
Maletira said Rackspace grew its revenues from services to the health care industry by 60% between April and June compared to the same time last year.
Still, the company faces decreasing overall revenues, according to its most recent quarterly report. In its federal filings for April, May and June of 2025, Rackspace noted lower revenues compared to the same time in 2024.
That’s a trend that has been consistent for several years. In the second quarter of 2022, Rackspace reported $772.2 million in revenue. Revenues were $666 million in the same time period this year, according to federal filings. Rackspace also reported losses of $54.5 million between April and June of 2025.
Maletira remained optimistic about the last two quarters of 2025. Rackspace is trying to increase its offerings around artificial intelligence and is seeing longer contracts from larger customers, he said on the Aug. 7 call.
Its deal with Dell Medical School shows the company is moving in the right direction, said spokesperson Cheryl Amerine in an emailed statement.
“Rackspace’s go‑to‑market execution remains strong, reflecting continued progress in our turnaround,” she said.
Amerine added that working with Dell Med helps advance delivery of medical services and health care research. This kind of deal is typical for Rackspace these days, said Harjott Atrii, the senior vice president that oversees Rackspace’s private cloud operations.
“This is a rinse and repeat of multiple such deals,” he said.
The terms of the deal were not disclosed, but it showed the company’s expertise and commitment to serving health care clients, Atrii said.
Rackspace will host and manage health care data for Dell Medical School by helping work on Epic, the electronic system that manages patient records, according to a press release announcing the deal. That includes hosting Epic and other data in its private cloud for a new medical center UT is building.
“It’s one step forward for us in terms of our commitment to health care,” Atrii said.
Atrii said Rackspace understands the needs of health care providers when managing their technology and cloud, working with Epic and complying with federal laws regarding security and sensitivity of health care data.
