Xero migrates to AWS from Rackspace

Cloud accounting software developer Xero, a long-term Rackspace customer, is migrating to AWS for platform as a service (PaaS).

It isn't like Xero founder Rod Drury to pussyfoot around a news opportunity, but that is what he did at an Amazon Web Services (AWS) Summit keynote presentation in Auckland on Wednesday.

While rolling out Xero's latest growth, customer, and traffic statistics, Drury quietly slipped in the news that Xero is "migrating to PaaS and AWS".

That appears to be bad news for the company's long-term primary hosting partner Rackspace.

Rod Drury.

Two years ago, Xero moved to a new Rackspace hosting environment for its PaaS needs.

"We looked at the various options open to us from platform-as-a-service (PaaS) offerings, such as Microsoft Azure, Amazon AWS, and Rackspace OpenCloud, through to building and managing our own equipment," Xero's blog said.

"Ultimately, we settled on the Rackspace Private Cloud solution based on a number of factors that allowed us to meet time frames, performance and capacity drivers, the need for rapid scaling, and of course cost effectiveness.

"We have been operating on the Rackspace Managed Hosting and Private Cloud solutions since March 2008. Rackspace offer a flexible and comprehensive solution that gives us a good balance between the benefits of our own equipment and infrastructure as a service."

So what's changed?

ZDNet has emailed Drury for details, but has not as yet received a reply.

During his presentation, however, Drury said Xero has been rearchitecting its development model over the last two years, looking for improved deployment speed and the best unit economics from its environment to drop the cost to serve customers.

Drury said Xero runs 625 servers and had issued 729 updates to its platform in the last year.

"We are thinking about speed all the time," he said.