Ars Technicacom readers can expect more AWS-related announcements at next week’s AWS developer conference in Austin, Texas.
The announcement that Rackspace will be purchased by Amazon comes two days after the online retailer announced it would acquire the data center hardware provider’s cloud-hosting service, Cloudflare, for $2.4 billion.
Rackspace had been valued at around $1 billion in early February, but is now valued at $2 billion.
“As we celebrate Amazon’s acquisition of Rackspace in early 2018, we’re excited to join the company and continue to serve our customers,” said Rackspace CEO John Sullivan in a blog post on Friday.
“The Cloudflares team will continue to deliver the world’s most popular cloud hosting platform for years to come.”
Rackspace will become Amazon’s first major AWS acquisition, and comes as Amazon is looking to scale up its cloud services.
It has previously announced plans to purchase and license Rackspace’s technology and infrastructure to its cloud-based services.
Amazon purchased Rackspace for $1.8 billion in 2018, but it’s been building up its infrastructure to meet demand, including building out its own data centers in Texas and building a new data center in Virginia.
Last month, it announced it had signed an agreement with Rackspace to purchase the company’s software.
The company has also acquired a cloud-storage service called OpenStack.