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Rackspace Technology and Google Cloud AI Enable BMG to Process Royalties Ten Times Faster than Before

January 18, 2024

Rackspace Technology and Google Cloud AI Enable BMG to Process Royalties Ten Times Faster than Before

Rackspace Technology and Google Cloud AI Enable BMG to Process Royalties Ten Times Faster than Before

Groundbreaking service enhancements for artists and songwriters can track music 50% faster

LONDON, UK, 18 January 2024: Rackspace Technology, a leading end-to-end hybrid multicloud technology solutions company, has announced it has helped enable groundbreaking service enhancements for artists and songwriters signed to music company BMG. Using Google Cloud’s advanced AI and big data capabilities, BMG can process royalty payments ten times faster and track music 50% faster. The achievement stems from Rackspace Technology’s Elastic Engineering team successfully migrating 95% of BMG’s applications and services to Google Cloud.

BMG’s new cloud-based platform will also support new data tools it will use following its decision to take control of its previously outsourced distribution, striking direct deals with leading streaming platforms such as Spotify and Apple. The world’s fourth-largest music company will use it to offer clients increased transparency and access to more detailed data.

Music streaming has fundamentally changed the music business. Today, it is the most common way people consume music. Platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music have continuously increased their user numbers, and artists benefit from this trend. But the services also generate vast quantities of data. Every stream track generates data points that must be tracked to ensure clients receive payment.

Faced with a consistent 30% annual increase in the data intake and to address these complexities, BMG strategically pivoted to Google Cloud, recognising the need for enhanced tools such as AI, Google Kubernetes Engine (GKE), and BigQuery to manage burgeoning data volumes and optimise operational efficiency effectively.

“Thanks to advanced AI integration, we’ve seen a huge increase in data harmonization, analysis and processing velocity. And now we can categorize music much faster, which helps us make better decisions on classification,” said Maxime Rousson, Cloud Architect at BMG. “Rackspace Technology was great to help us in this journey. They helped us design and architect the best services in Google Cloud.”

BMG CTO Gaurav Mittal said, “The collaboration with Rackspace’s team of experts worked well, and together, we successfully EXECuted a complex project of cloud migration in record time. This program was an important milestone of our latest platform upgrade, enabling BMG to meet the future customer needs.”

Jürgen Stauber, General Manager, DACH, at Rackspace Technology, added, “We are proud to be able to bring in our knowledge and our expertise in this project and help BMG to design an innovative, scalable, and reliable solution that will generate significant efficiency gains and help BMG to better position itself in the market as the world’s most artist-friendly international record label. We remain dedicated to empowering organisations like BMG, ensuring they thrive in today’s business landscape’s ever-evolving and dynamic terrain.”

About Rackspace Technology

Rackspace Technology is a leading end-to-end, hybrid multicloud technology services company. We can design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernise applications, build new products, and adopt innovative technologies.

About BMG 

BMG is an integrated music publishing and recordings business and the world’s fourth-largest international music company. BMG’s distinctive pitch is a relentless focus on global service to its artist and songwriter clients, combining creative insight and support with the best in technology and analytics. BMG’s 22 offices across 13 core music markets represent over three million songs and recordings, including many of the most renowned and successful catalogs in popular music history. BMG is owned by international media, services and education company Bertelsmann, whose other content businesses include the entertainment company RTL Group and the trade book publisher Penguin Random House. With its integrated technology platform, artist-friendly culture and commitment to help artists maximize their income, BMG aims to be the best company in music to do business with.  www.bmg.com

Media Contacts:

Global: Natalie Silva, publicrelations@Rackspace.com

EMEA: Devika Mistry, devika.mistry@Rackspace.co.uk

About Rackspace Technology

Rackspace Technology® (NASDAQ: RXT) is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable. Learn more at www.rackspace.com.

Forward-Looking Statements

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 These statements include, but are not limited to, Rackspace Technology’s relationship with NVIDIA and the NVIDIA Cloud Partner Program, its Enterprise AI Cloud strategy, the anticipated capabilities, benefits and timing of its Institutional Sovereign Pod architecture, Rackspace’s outlook on the AI industry and its ability to deliver, operate, and scale AI infrastructure and solutions for regulated, institutional and sovereign enterprises. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including, without limitation: Rackspace's ability to realize the anticipated benefits of its relationship with NVIDIA and the NCP program; the availability, cost, and timing of deployment of NVIDIA and other third-party technology; Rackspace's ability to develop, market, and scale the Institutional Sovereign Pod and related offerings on the anticipated timeline or at all; market acceptance of and demand for sovereign and governed AI infrastructure solutions; competition in the AI infrastructure and cloud services markets; capital expenditure requirements associated with AI infrastructure buildout; availability of financing for the AI infrastructure buildout on terms acceptable to Rackspace; Rackspace’s reliance on a limited number of technology partners, including NVIDIA; cybersecurity, data privacy, and regulatory compliance risks associated with serving regulated and sovereign customers; general economic and industry conditions; and other risks and uncertainties described in Rackspace's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rackspace undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.