A Rackspace board member leaves as a senior executive prepares to leave

A top Rackspace Technology Inc. executive will leave the company, while a board member resigned this month.

The changes come as the San Antonio cloud computing company has been at the center of a recent ransomware attack, though the outputs are unrelated to the incident, and because it plans to implement a new business plan early next year. year.

The departure of Holly Windham, the company’s executive vice president, chief legal officer, and chief people and corporate secretary, was announced in a recent filing with the Securities and Exchange Commission. Plans called for her to step down from her position as personnel director last week and stay on as legal director until she fills the position no later than February 28.

Board member Tim Campos, chief executive of software development firm Woven, had notified the company on December 12 that he would resign effective immediately, according to SEC filings. He has been named chief information officer of Apple Inc.

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The high-level departures came as Rackspace entered its third week of fighting a ransomware attack that occurred on December 2 and brought certain services to a standstill.

In an email, Rackspace marketing director Casey Shilling said the moves involving Windham and Campos “have no connection to the recent ransomware incident.”

“Windham will be leaving the company to pursue another opportunity,” Shilling said, noting that the roles of legal director and director of people will be split and that searches to fill both positions are ongoing.

Meanwhile, Campos’s resignation from the board of directors “is due to demands on his time related to the new role and to avoid potential conflicts of interest in the future,” Shilling said.

internal reorganization

Rackspace, San Antonio’s largest technology company, has reported revenue increases for 12 consecutive quarters, even as its net losses increased. Its share price has fallen 80 percent since January. At the close of the market on Wednesday, the company’s shares were trading at $2.84,
below
from around $4.80 the day of the ransomware attack.

Amid financial difficulties, the company said earlier this year that it decided not to sell, but to pursue restructuring plans, which include realigning into separate business units for public and private clouds.

In September, Rackspace announced that Amar Maletira, the company’s president and chief financial officer, would immediately replace Kevin Jones as chief executive officer. The company said Jones, who has led it since April 2019, would take a position at New York-based Apollo Global Management, the company’s largest shareholder.

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The internal shakeups sparked speculation from local business leaders about what the future holds for San Antonio’s largest tech company, which employs some 7,000 workers known as Rackers.

Then, in October, Rackspace announced it was leaving its former headquarters in Windcrest, known in tech circles as The Castle. The company said it is listing the 1.2 million-square-foot main office and downsizing from 75,000 to 90,000 square feet of office space in the north end.

In early November, Rackspace said it had named Shashank Samant as a senior director to its board. Samant, who has been on the company’s board since October 2021, would also serve as an advisor to Apollo. He agreed to invest $2.5 million in company stock.

Also last month, Rackspace named Bobby Molu as its next chief financial officer, replacing Maletira in that role. Molu, Mastercard’s chief financial officer of international markets, was due to start on January 16, 2023.

In the aftermath of a ransomware attack, Rackspace said earlier this month that it would split the roles of chief legal officer and chief of staff “as part of the organizational alignment,” according to an SEC filing.

Data Access Restoration

Rackspace said this week that it continues to “make progress” in restoring Exchange customer access to data, including email accounts, contacts and calendars.

“We are also continuing to test the efficiency and speed of the process as email data becomes available for transfer,” Shilling said Tuesday. “We expected to start restoring customer data at scale in the next few days.”

Most of the affected customers and users have migrated to Microsoft 365.

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Rackspace’s chief product officer, Josh Prewitt, has said the company hasn’t determined whether it will exit the hosted Exchange business, which brought in about $30 million in annual revenue, or 1 percent of total annual revenue.

Much is still unknown about the ransomware attack. The company did not specifically identify the attackers, reveal what they were looking for or say whether the company is paying a ransom to regain access to the data. It’s also unclear how the attackers gained access to Rackspace’s servers.

Rackspace has said it notified the FBI about the breach and is cooperating with the agency in its investigation. The FBI has refused to confirm or deny that he is investigating.

Rackspace also said it hired Austin-based cybersecurity firm CrowdStrike to help conduct an internal forensics investigation. Earlier, Rackspace said that CrowdStrike had determined that the breach is isolated to the Exchange server and that no other products or clients were affected.

Last week, an outside counsel for Rackspace said the company identified the culprit only as “a financially motivated criminal group, a known ransomware group.”

Rackspace executives missed a deadline to complete the internal investigation late last week and declined to set a new target date.

eric.killelea@express-news.net

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