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NEW YORK (TheStreet) -- Rackspace Hosting (RAX) stock is advancing 5.86% to $23.48 on heavy trading volume on Wednesday afternoon as the cloud service provider works with Google Cloud Platform to develop specifications for an open server based on International Business Machines's (IBM) POWER9 CPU.

The partnership is part of the OpenPOWER Foundation, an organization created by technology companies to collaborate, customize and develop products for the POWER computer processors.

Rackspace and Google Cloud Platform, a unit of Alphabet (GOOGL) subsidiary Google, will work together to develop data center servers as part of the Open Compute Project.

"We are committed to open innovation, and to optimizing performance and cost in data centers," Google hardware engineering manager Maire Mahony said in a statement. "Working with Rackspace, we will submit a POWER9 server design to the Open Compute Project that will address the diverse requirements of end customers for data center services."

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So far today, 2.96 million shares of Rackspace have exchanged hands, compared with its average daily volume of 2.5 million shares.

Separately, Rackspace has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, reasonable valuation levels and good cash flow from operations, and its weaknesses, including unimpressive growth in net income and generally disappointing stock performance.

You can view the full analysis from the report here: RAX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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