Is now the time to cut marketing spend?

SureFire Excellence

This article in The Register caught my eye today. Despite reasonable top line growth, margins are obviously under pressure. You don’t need to be a rocket scientist to know that the rapid growth of AWS, Google and Microsoft Azure in the public cloud space is putting pressure on Rackspace’s traditional SME business.

So it is hardly surprising to see the new Rackspace CEO-in-waiting state that the future is about dedicated, for that read private and hybrid, cloud. What is surprising is to see that marketing spend has declined. Rackspace need to spend time and money understanding the corporate market they need to crack. They need to find and grow profitable segments, develop new differentiated, defensible offers and ensure the sales force is organised and supported to have more business focused discussions than they have been having to date. I don’t know about you, but I call that marketing.


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