RackSpace; the future to Square-up

Business Problem

Square faces a burden from investors to live up to exceeding standards despite their mission’s smaller reach. How can Square meet these growth expectations while still pursuing their mission of being inclusive to small and medium sized businesses? Although Square is one of the most popular payment solutions used amongst smaller and medium-sized businesses, it has a reputation for having bad customer service. This, in tandem with the fact that Square has a glaring issue in not being able to handle the increased volume of transactions on their services, calls for change.


Working with RackSpace will help Square handle the increase in customers focusing on cloud services and make sure that the online services are running. This would foster small business growth and expansion of Square, while simultaneously transforming its cloud-base presence.


RackSpace’s cloud services will assist Square in forming a reliable system of operations by improving customer response by catering to their needs.

The increased data storage that RackSpace offers will allow Square to reach out to a broader range of market segments.

The partnership will benefit Square in the long-term through increased cloud-based data storage and better customer service.

Business Challenge Story

Currently, Square is facing exponential growth in transactions and higher demands from smaller business companies. Square needs to make sure that they have a reliable system of operations that keeps the cloud services running because of this drastic growth. With such high demand, one mistake or shut down of their online services could prove to be detrimental, as they are still in the process of growing. Any issue would be catastrophic to Square’s image, and the potential small business clients would be turned off to use their services. This would put on a heavy strain not on just their revenue, but also potential future growth due to their limited focus on smaller businesses. In addition, recovering from a negative unreliable image would be hard to overcome, and Square needs to focus on having their services reliable before they expand further in order to protect their future growth. According to recent reports, 2,300+ online complaints have been launched in in the last 36 months and this partnership would help benefit the customer interaction.

About Square

Square, Inc. was formed on May 11th, 2010 in San Francisco, USA. The company offers financial services, merchant services and mobile payments; targeted towards smaller business companies. They have more than 2,000 employees in Square’s headquarter office in San Francisco and in 2013 the firm announced that its mobile payment services will be available in Japan after a partnership with Sumitomo Mitsui Card Corporation. They have offices in Australia, the United Kingdom, the Netherlands, Switzerland, Germany, Singapore, Mexico, Hong Kong.

Square differs from other traditional card services such as Visa or Paypal because they are focused on small business accessibility as well as customer security. However, having that smaller scale community limits the volume of transactions they can handle. Looking for a Cloud sharing company that will allow them to expand, not in the scale of businesses they provide but the amount of smaller business they can handle, should be Square’s priority.

With Square’s cloud-based POS system, their transaction history is safely secured without being tied to a traditional countertop. The POS software allows the systems to be run on any device, not just a desktop computer, but also devices such as the tablet and smartphones.

Using a cloud-based POS system, Square has eliminated the need for bulky, expensive server systems, as well as a costly upfront POS software license. In addition, Square eliminates the need for PCI compliance audits. They have a team of PCI experts who complete annual Level 1 audits while keeping their customers’ card safe by using tokenization and robust data encryption.

The weaknesses of a cloud-based POS system such as Square’s are that it is internet dependent, highly uncustomizable and often lacks customer support.

Square is a relatively new company and therefore its manpower is spread thinly. Using RackSpace alleviates pressure on Square’s employees to maintain its streamlined services. Square needs to focus on customer service, making sure the smaller amount of transactions they do run go through cleanly, and developing its product line. RackSpace is a good service for Square because it caters to businesses of all sizes and has been commended for their customer service, usability, and reliability. Adapting RackSpace will increase Square’s reliability and promote growth due to consumer trust.

  • Rackspace Cloud Mix
  • Rackconnect
  • Rackconnect Global

Take the next step

To learn more about the RackSpace cloud platforms and schedule a consultation with an expert, visit.

To learn more about RackSpace, please contact your RackSpace Hosting Support or OpenStack Cloud Support, or visit the following website.

Written and edited by: Ankita Agarwal, Grace Cho, Kiara Cowderoy, Vanessa Fukuchi, Woojin Gallo, Erin Huang, Nathan Kim, Mikaela Lim, Vivian Pham, Neha Rathi and Esther Teow




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Neha Rathi

Neha Rathi

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