Feeds

Rackspace, MacTel snipe in the cloud

Patriot Act does/does not apply, take your pick

Maximizing your infrastructure through virtualization

Rackspace’s arrival in Australia last week – complete with a swipe at local player Macquarie Telecom – has brought a response back from MacTel.

Rackspace announced that it will take a hall in a Digital Realty facility in the Sydney suburb of Erskine Park.

As noted by The Register at the time of launch, Rackespace’s decision was partly driven by a desire to reassure customers that local storage would keep customer data out of the hands of America’s Patriot Act.

(Even so, with the passage last week of the Cybercrime Amendment Bill, Australian data is no longer entirely out of reach of international spooks law enforcement, since part of the Act’s effect is to permit offshore agencies to request data interception.)

Referring to its ability to spread its costs around the world, the company chose Macquarie Telecom as its case study: while the new entrant will suffer the same bandwidth penalty as anyone in Australia, with costs “orders of magnitude” above the USA, it said its staff costs are lower than Macquarie’s, which it told the Australian Financial Review has “every single person and role here”.

That’s drawn a response from Macquarie during its annual results announcement (key items: a profit of $AU19.6 million and an interest in new acquisitions) last Thursday. Head of regulatory affairs Matt Healey described Rackspace’s statements about the Patriot Act as “mischievous” since it remains a US company and in his opinion still subject to the American law in spite of its “small investment” here.

The AFR flicked the ball back to Rackspace which says it won’t transfer data to America without permission “unless required to by Australian law”. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.