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Rackspace Hosting stock falls

Texas-based Rackspace may see new threats from Amazon.

Jens Meyer/Associated Press/File

Texas-based Rackspace may see new threats from Amazon.

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Rackspace Hosting Inc. may face tougher competition because of price cuts at Inc.’s cloud-computing unit, Dow Jones reported. Amazon Web Services has slashed prices as much as 80 percent for so-called dedicated computing — use of rented machines that are restricted to a single customer, often for security and regulatory reasons. That could make it harder for the much smaller Rackspace to grow. Rackspace typically charges more than big rivals.

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