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Rackspace Isn’t For Sale, Appoints New CEO

10450835_10203997231907785_1795900044947966901_nRackspace Tuesday announced that it is no longer for sale and it’s going to remain independent.

The San Antonio-based Web hosting company also named Taylor Rhodes as its new CEO and a member of the board effectively immediately. He’s been with Rackspace for seven years and previously served as its president.

In May, Rackspace announced in papers filed with regulators that it “had been approached by multiple parties who expressed interest in exploring a strategic relationship, ranging from partnership to acquisition.”

Then the company’s board retained Morgan Stanley and Wilson Sonsini Goodrich & Rosati to examine ways to maximize shareholder value.

“After a comprehensive review, the board decided to terminate M&A discussions,” according to a news release. “Based on Rackspace’s reaccelerated revenue growth and its potential trajectory for the coming year, the board concluded the company is best positioned to maximize shareholder value by executing its strategy as the #1 managed cloud company.”

“We ran a thorough process under the direction of our board of directors, independent advisors, and a Strategic Transaction Committee of the Board,” Graham Weston, Rackspace co-founder and chairman, said in a news release. “In this process we talked to a diverse group of interested parties and entertained different proposals. None of these proposals were deemed to have as much value as the expected value of our standalone plan. We concluded that the company is best positioned to drive value for shareholders, customers and Rackers through the continued execution of its strategic plan to capitalize on the growing market opportunity for managed cloud services.”

“The board also considered a share repurchase program and determined that, based on the company’s significant opportunities, it is prudent to maintain flexibility at this time to ensure that the appropriate investments can be made to drive our strategy forward. We will continue to evaluate the benefits of implementing a buyback program in the future,” Weston said.

Intel to Host Internet of Things Workshop at TechShop in Austin

600_408307722Intel will be hosting its Internet of Things Roadshow at Techshop in Austin on Saturday and Sunday.

The roadshow is one of ten events the company is doing worldwide and the only one in Texas. Other events in the U.S. are in Mountain View, Calif. and New York. Other events globally are being held in Europe, South America and Asia.

Intel is looking for makers, IoT startups, developers, students and even hardware novices to join them at the event. Participants get a free developers kit which includes an Intel development board.

The event will feature food, onsite giveaways and prizes for the best IoT solutions.

“Come by and tinker with the Dev Kit – which is based on Intel® architecture and designed to be hardware and software pin-compatible with Arduino,” according to an Intel release. “Plus it includes lots of cool sensors, software and accessories to stimulate your creativity.”

The event kicks off with training on the technology and developer’s kit, followed by a hackathon. People can work solo or in teams. And Intel will be giving the first 100 attendees who have registered a free Intel Galileo Board.

The event starts Saturday at 9 a.m. at Techshop. But you’ve got to register to attend.

Full disclosure: Silicon Hills News will be one of the judges at the Hackathon event

NASA’s On Track to Build the Most Powerful Rocket Ever

By LAURA LOREK
Founder of Silicon Hills News

Inside the Michoud Assembly Facility, photo by Laura Lorek

Inside the Michoud Assembly Facility, photo by Laura Lorek

NEW ORLEANS – In a former sugar plantation on the eastern outskirts of New Orleans sits one of the city’s hidden gems.

NASA’s Michoud Assembly Facility is known as the gateway to space.

Although most people know New Orleans for Mardi Gras, great Jazz music, art, Bourbon Street, gumbo, hurricanes, beignets and chicory coffee, it’s also a hub for rocket scientists. Yet tourists rarely get to see this site. Some of the best and brightest in the space program work at Michoud. But even some of the locals don’t realize the important role this place has played throughout the nation’s space history.

“Every rocket that has taken humans to space since the ‘60s has come through Michoud,” said Malcolm Wood, the facility’s deputy chief operating officer.

“During the Apollo program in the 1960s, Michoud built the first stages of the Saturn 1, 1B and Saturn V rockets,” according to NASA. Later, Michoud designed and built the 15-story tall external tanks for the space shuttles. One of the last tanks, a bright rust colored mammoth sits behind a building onsite, a monument to its past.

But Michoud is preparing for the future.

Major components of the Space Launch System (SLS) NASA’s most powerful rockets that will send astronauts into deep space and eventually Mars, are being built at Michoud, said Roy Malone Jr., director of the facility. Michoud is building the core propulsion stage for the SLS, and they are also building the Orion Multi-Purpose Crew Vehicle, he said.

BxXc_fdCcAAQvCSThe 832-acre campus, which houses one of the nation’s largest manufacturing plants, is about 20 minutes from the French Quarter. The plant has more than 43 acres under one roof. It’s so vast that workers use bicycles to get around.

And it’s evolving, Malone said.

Michoud escaped major damage from Hurricane Katrina thanks to its employees working around the clock to pump water from the grounds, which like most of New Orleans sits below sea level.

At Michoud, Malone is like the mayor of a small city with 3,500 employees based at the facility, only 300 of them belong to NASA. The rest are contractors, employees of other federal agencies or private companies.

“We’re really changing the way we do business with a NASA facility,” he said.

NASA has nearly one million square feet for lease on the site. Its tenants include military contractors like Boeing and Lockheed Martin, but also Big Easy Studios, a film company. Big Easy has 250,000 square feet of studios and has filmed the sci-fi flick Ender’s Game, and Planet of the Apes and plans to film the upcoming Jurassic World here.

The site includes the Port of Michoud, which connects to the Mississippi River and Gulf of Mexico. NASA recently gave the U.S. Coast Guard half of the port. And the U.S. Department of Agriculture with more than 2,600 employees is one of the largest tenants on site.

Despite its transformation into a multi-purpose facility, Michoud still plays a major role in the space program. And all eyes last Friday were on the site for the dedication of a new facility.

NASA Administrator Charles Bolden, photo courtesy of NASA

NASA Administrator Charles Bolden, photo courtesy of NASA

NASA Administrator Charles Bolden, New Orleans Mayor Mitch Landrieu, Louisiana Senator David Vitter and Mississippi Congressman Steven Palazzo and other dignitaries gathered to cut the ribbon on the brand new Vertical Assembly Center, the largest spacecraft welding tool in the world.

“Right here we begin the next great march to the next great exploration to space,” Mayor Landrieu said. It’s a symbol and concrete example of New Orleans’ innovative future, he said.

“This is the beginning of the trip to Mars,” Bolden said. “This is not for any of us sitting here today. What we’re doing and what we’re about is for the young people of this nation. We are on our way to Mars and I really mean that. The state of Louisiana and the City of New Orleans along with neighboring states are key parts of building the core stage of the SLS.”

The Vertical Assembly Center at Michoud, photo courtesy of NASA

The Vertical Assembly Center at Michoud, photo courtesy of NASA

The Vertical Assembly Center is 170 feet tall and 78 feet wide and will be used to build the core stage of the SLS.

“The SLS Program continues to make significant progress,” said Todd May, the SLS program manager.

The NASA SLS rocket is expected to launch in 2018.

“At a fundamental level, space exploration, the mission of NASA, is about inspiration,” Congressman Palazzo said. “This inspiration fuels our desire to push the boundaries of the possible and reach beyond our own pale blue dot. The Space Launch System will be the most powerful rocket ever built and will carry humanity into the next phase of the exploration of our solar system.”

Inside the VAC, photo by Laura Lorek

Inside the VAC, photo by Laura Lorek

The SLS isn’t just drawings on a sketchpad, it’s real, Palazzo said.

“You can see the hardware being built and the components being assembled,” he said.

This is all progress on NASA’s goal of sending humans to Mars, he said.

Editor’s Note: This is a field trip outside of the Silicon Hills. Occasionally I will visit another pocket of innovation that relates to all the work being done in Central Texas. I attended a NASA Social last Friday for the ribbon cutting on the Vehicle Assembly Center at the Michoud Assembly Facility. We also travelled to the Stennis Space Center in Mississippi. I will be writing another story from that trip.

Acxiom Opens Austin Office with 150 Jobs

imgres-2Acxiom, a Little Rock-based software company, announced Monday that it will be opening an Austin office and hiring 150 new employees.

Acxiom is a data mining, analytics and marketing company. It recently launched a site, Abouthedata.com that lets consumers view the details the company has collected about them, according to this story in the New York Times.

The company is looking for people with technology skills such as network engineers, security engineers, system engineers, security architects, network architects, infrastructure architects, software engineers and project managers.

“We are excited about opening new job opportunities for the local market,” Janet Cinfio – Austin site leader and VP of infrastructure and technology operations said in a news release. “There is an incredible amount of technology talent in Austin which we hope to tap into as our operations continue to grow and expand.”

Acxiom will be hosting a recruiting event on Sept. 25th from 5 p.m. to 7 p.m. at the Steiner Ranch Steakhouse. For more information on the event or job openings, contact Acxiom recruiting at jobs@acxiom.com.

“Acxiom is an industry leader that invests deeply in its communities, its decision to expand operations into Austin is great news for our region and residents,” Pete Winstead, Shareholder at Winstead PC and Chairman of Opportunity Austin, a five-county economic development initiative aimed at fostering job-creating investments in the Austin region, said in a news release.

“Acxiom’s announcement serves as a testament to Central Texas’ supportive business climate, strong technology sector and talent pipeline. We are pleased to welcome Acxiom to Austin, and look forward to working together to build a strong future for our community.”

Acxiom’s new offices will open in late November and will be located at River Place Corporate Park on 6500 River Place Boulevard.

Cratejoy Builds a Better Box Subscription Service

By LESLIE ANNE JONES
Reporter with Silicon Hills News

Alex Morse and Amir Elaguizy, co-founders of Cratejoy in Austin, photo by Devaki Knowles

Alex Morse and Amir Elaguizy, co-founders of Cratejoy in Austin, photo by Devaki Knowles

In our era of multitudinous, fragmented e-commerce, there’s a box subscription service for just about anything – baby clothes, lingerie, gluten-free food, gourmet candy. But until Cratejoy, there was no one-stop platform where box curators could get their businesses off the ground.

Cratejoy founder Amir Elaguizy sold his Internet poker data-mining startup to gaming company Zynga in 2011. He continued to work at Zynga for a couple years. After that, the next thing he wanted to do was make a company that could help small businesses and put people on track to becoming their own bosses.

“I thought honestly I was going to be starting a little hobby,” says Cratejoy user Amber Golightly who is the founder of The Austin BatBox, which curates local products. She started in May, and thanks in part to the host of services she receives through Cratejoy, box curation is now her full-time endeavor.

Back in 2012, Elaguizy started a new venture with his long-time business partner Alex Morse. They went through several iterations before honing in on the idea that would spur Cratejoy.

In summer of 2013, they were accepted into the Y Combinator accelerator program with an idea for a “push-button” solution that would make it easier for entrepreneurs to start small businesses. At the program, Elaguizy met another entrepreneur who was selling women’s clothing through a box subscription service.

Elaguizy and Morse started doing research, calling about 200 people who were in the box-subscription business. Quickly they realized just about everyone was facing similar basic business problems.

“We were on a hack of a bunch of e-commerce platforms – a little bit on shopify, another recurring billing system,” recalls entrepreneur Dan Scudder who runs Root Bizzle, a necktie subscription company. Scudder was one of the people Elaguizy initially talked to for research purposes and is now a Cratejoy client.

21bundles-box-maySubscription box curators are often people who are passionate about a particular area of commerce. For instance, one entrepreneur in Elaguizy’s beta test is a former art student who curates boxes full of sample supplies so that artists can more affordably try out new products. In other words, box subscription providers aren’t necessarily e-commerce masters or people who are equipped to code.

If you run a box subscription service, you can either pay someone to build out your website and e-commerce functions, or you can cobble together existing services – one for payment, another for subscription collection, another for analytics – that don’t work quite optimally and are not integrated. The first solution can be expensive, the latter is cumbersome.

With what they’d learned, Elaguizy and Morse began coding in fall of 2013. They kept their heads down through the end of the year and by January they had a prototype of Cratejoy, a one-stop service that would make it easy to begin a box subscription. Cratejoy’s offerings include, web hosting and page templates with mobile integration, a subscription billing management system and business analytics.

By the time they were ready to start their private beta test, Elaguizy says they already had a waitlist of 800 merchants, despite not having done any advertising.

What happened was during the research phase Elaguizy had told box subscriptioners what he planned on creating, whom then in turn told others box entrepreneurs. They quickly collected $50,000 in pre-payments from merchants eager enough to pay to enroll in the private beta. At the moment, Cratejoy has 120 companies enrolled and its waitlist has climbed into the thousands.

Elaguizy says they’ll be ready for public beta within the next six months. He says that he and Morse bucked the “fast and crappy,” get-it-out-as-fast-as-possible startup model. He wants the service to be near perfect before it’s fully unveiled.

One of the most rewarding developments so far, Elaguizy says, is that since the private beta began he’s seen three of his users quit their day jobs to be full-time box subscriptions business people.

One surprising development has been that 30 percent of demand for Cratejoy has been for subscriptions services rather than boxes. One user is The Fox Society, an Austin-based service that plans date nights for couples. Elaguizy said he’s fielded interest from a guy with a lawn maintenance business: He has the same clients all the time, but wants to streamline his business process online.

Within the next year, Elaguizy has plans to build a marketplace where people can shop for different kinds of box subscriptions. To date, Cratejoy has facilitated 22,000 shipments and deliveries in 52 countries.

consciousbox-may-1Elaguizy subscribes to every merchant who is using his platform, so his office has plenty of goodies lying about – vitamins, tea, paintbrushes, and a high-quality plush child’s toy. He likes working with box curators: They tend to be people who are passionate about their product and committed to delivering quality since every month they must continue to impress their customers. He says his engineers like receiving immediate feedback from their merchant community and the boxes themselves are fun, but what keeps Elaguizy most excited about Cratejoy?

“I’m interested because of the people who quit their jobs.”

RB-june

Bob Metcalfe Tells Startups to Build Their Networks to Succeed

photoBob Metcalfe, professor of Innovation at the University of Texas, spent some time talking with Jason Seats, managing director of Techstars, during a virtual fireside chat at Foundercon in Austin recently.

Metcalfe has held many careers including educator, publisher and columnist, venture capitalist, inventor of Ethernet and founder of 3Com. He has spent the past three years in Austin at UT and has pledged to make this area a “better Silicon Valley.” He works closely with startups as one of the instructors at the Longhorn Startup program at UT, which teaches undergraduates how to form and run a startup successfully.

In this Techstars video, Metcalfe tells the Techstars founders and staff “You are my favorite people. You are entrepreneurs.”

His advice to startup entrepreneurs is to build their networks to cultivate the success of their startups.

“Building your networks is the most important thing you can do to ensuring the success of your company, your customer networks, your networks of possible employees, your supply networks, your investor networks” Metcalfe said.

“One of the mistakes you can make is to not grok what it means to build a network,” Metcalfe said.

The important thing is that a rolodex must contain trusted sources, Metcalfe said. Entrepreneurs’ networks must be built by exchanging value with those people, he said.

“The first thing that can happen to a network is that you fail to build one,” Metcalfe said.

“The second thing that can go wrong is that your network can be junk,” Metcalfe said. “Some correlation of Metcalfe’s law is that a junky network isn’t worth shit.”

Build your networks and take care of the people in them, he said.

WigWag Begins Taking Pre-Orders for its Smart LED Light Bulb Sets

wigwag-filament-wigwag-relay photo 2 (1)WigWag hit a nerve with consumers last year when it launched a Kickstarter campaign to raise $50,000 for a device to connect and control everything in the home from lights to temperature to soil moisture for watering plants.

The Austin-based startup ended up blowing way past it goal and raising more than $454,000 from 1,694 backers. The company expects to begin shipping products over the next few months, said Ed Hemphill, CEO and co-founder.

“Kickstarter helped prove there was a demand for what we’re creating,” Hemphill said. “We learned a ton from Kickstarter. And the product we’re going to deliver is an even better product.”

And on Wednesday, WigWag announced it has begun taking pre-orders on Amazon for Filament by WigWag, a smart, dimmable and full-color LED light bulb.

The company’s light bulb sets are controlled using a smartphone app with either an iOS or Android mobile phone or by a classic wall switch. The WigWag Relay, which plugs in an Internet router, provides the gateway to the Internet to control the lights and other devices to create a smart home. The starter sets with WigWag Relay and four, eight or 12 bulbs cost $99, $199, $299 and $399 respectively. The company plans to deliver the products in the fall.

WigWag’s Relay device works with all kinds of devices in the home including Belkin WeMo, Sonos, Nest, Philips Hue and more. It also works with different adapters such as ZigBee, Bluetooth and Z-Wave.

“We take different devices and protocols and glue them together,” Hemphill said.

WigWag, founded in 2012, has raised $650,000 to date, according to papers filed with the U.S. Securities and Exchange Commission. The company has 12 employees, including four in China.

For more on the company, please read this Q&A from a year ago with Hemphill and Silicon Hills News.

DreamIt Ventures Accepting Applications for its Next Austin Program

dreamitDreamIt Ventures is now accepting applications for its DreamIt Austin 2015 class.

This will be the third year for the DreamIt Ventures program in Austin.

DreamIt Ventures offers a three-month accelerator program that helps startups to build strong business plans, develop strategic relationships and acquire customers.

So far, DreamIt Ventures has helped to launch 157 companies that have raised more than 4172 million in funding. DreamIt Ventures estimates the net worth of all the companies to be more than $525 million.

The DreamIt Ventures Austin companies each receive $25,000 in seed funding, plus the potential of up to $250,000 in follow-on funding. Teams also receive mentoring and access to industry-specific resources and potential beta customers. Meetings with DreamIt’s managers. The opportunity to present to investors at Demo Day, free legal services and office space and more.

Founding Partner Steve Welch, CEO Kerry Rupp and Dana Rygwelski, director of programs, will lead the Austin program, which will run from Jan. 8th to April 17, 2015.

Applications are due Nov. 7.

RealMassive Promotes Craig Hancock to President

79047_realmassiveAustin-based RealMassive, a commercial real estate information company, announced Monday the promotion of Craig Hancock, co-founder and vice president of sales and chief financial officer to the position of president.

In his new job, Hancock will lead RealMassive’s sales and partners strategy. He will also serve as Chief Financial Officer until they hire a replacement.

“Since Day 1, Craig has demonstrated solid leadership in making strategic financial and business development decisions for the company,” CEO and Founder Joshua McClure said in a news release. “His customer-first focus, sales acumen and commitment to building strong relationships are a clear indication that Craig has what it takes to continue to lead RealMassive to a winning financial position well into the future.”

The company has raised $4.1 million to date, according to its CrunchBase profile. It has 25 employees and five full time contractors. The company sells a cloud-based marketing platform to commercial real estate professionals and provides them with data and analytics on their space and buildings.

Bloomberg Reports CenturyLink is Considering Acquiring Rackspace

rackspace-1Rackspace Hosting’s stock closed up nearly 7 percent on Monday after Bloomberg News reported the company was talking to CenturyLink, a Louisiana-based Internet and telecommunications company, about a possible buyout.

Rackspace’s stock, traded under the symbol RAX on the New York Stock Exchange, closed at $39.79 on Monday.

Citing sources familiar with the talks, Bloomberg reported that CenturyLink wants to acquire Rackspace to expand its cloud computing business.

“CenturyLink has discussed the idea with San Antonio-based Rackspace, which last month said it is still conducting an internal review of its strategic options, according to the people, who asked not to be identified talking about private information,” according to the Bloomberg story. “One person said a deal may not be reached for the company, which had a stock-market valuation of $5.33 billion at the end of last week.”

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