Yes but even prior to this, Rackspace had been a managed cloud provider, meaning they offer services on top of the infrastructure. This is different than AWS.
RAX's going private to shift its P&S mix and turn things around.
edit: I'll also point to jsode's great comment above.
[0] https://support.rackspace.com/how-to/mapping-of-amazon-web-s...
[1] http://www.networkworld.com/article/2461361/iaas/rackspace-b...
It was more similar to DigitalOcean or Vultr, who are not really IaaS but VPS providers. I mean, where are the VPCs? the incredibly redundant load balancing? the VPN gateways, etc?
Disclaimer: It has been 2 years since I evaluated RAX's offerings.
Shouldn't your cloud based application manage itself? That's kind of the point, not having to 'manage' it?