Rackspace and Dell Medical School Partner for Industry-Disrupting Cloud Strategy

Dell Medical School has partnered with Rackspace to host and manage its data center needs, including its Epic Electronic Health Record (EHR) platform. Rackspace will provide a fully managed service model to ensure a seamless transition and operational excellence. The partnership aims to revolutionize healthcare service delivery, medical education, and research, significantly advancing patient care standards. Dell Med plans to build a new academic medical center without a traditional physical data center, with Rackspace hosting and managing critical components of the system's digital infrastructure.

Dell Medical School at The University of Texas at Austin (Dell Med) has entered into a strategic partnership with Rackspace Technology (NASDAQ: RXT) to host and manage its data center needs, including its Epic Electronic Health Record (EHR) platform. The partnership aims to revolutionize healthcare service delivery, medical education, and research, significantly advancing patient care standards. Dell Med plans to build a new academic medical center without a traditional physical data center, with Rackspace hosting and managing critical components of the system's digital infrastructure [1].

The partnership marks a significant shift in healthcare IT infrastructure, as Dell Med will become the first academic medical center to go fully cloud-native. Rackspace will provide a fully managed service model, ensuring secure and compliant cloud services with built-in redundancy for patient safety and system resilience [1].

For Rackspace, this represents potential expansion in the healthcare vertical, one of the largest IT spending sectors in the economy. The fully managed service model for Dell Med likely indicates a higher-margin engagement compared to basic infrastructure provision. Healthcare clients typically require long-term commitments with stable recurring revenue due to the complexity of migrations [1].

The partnership's innovative nature - creating what appears to be the first academic medical center without traditional data centers - provides Rackspace with a high-profile reference implementation that could attract similar institutions looking to modernize their infrastructure while maintaining compliance with healthcare regulations like HIPAA [1].

The strategic value of this deal extends beyond typical cloud hosting. Managing Epic deployments requires specialized expertise due to the complex regulatory requirements and mission-critical nature of healthcare data. This partnership positions Rackspace to demonstrate capabilities in the highly regulated healthcare IT sector, which has traditionally been conservative in cloud adoption [1].

As part of its long-term digital strategy, Dell Med plans to build a new academic medical center without a traditional physical data center. Rackspace will host and manage critical components of the system’s digital infrastructure, including Epic and other clinical workloads, through secure, compliant cloud services designed with redundancy to support patient safety, regulatory standards, and system resilience [1].

References:
[1] https://www.stocktitan.net/news/RXT/dell-medical-school-taps-rackspace-for-industry-disrupting-cloud-6h0qahnbbsq4.html