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FreshBooks Chooses Hybrid Hosting From Rackspace

Expands Support from Dedicated Hosting of Bookkeeping Applications to Highly Scaleable Cloud Solution

SAN ANTONIO–(BUSINESS WIRE)–Rackspace® Hosting (NYSE:RAX), the world’s leader in hosting, today announced that FreshBooks, the leader in online invoicing and bookkeeping for professionals, is leveraging the company’s new hybrid model of both cloud and dedicated hosting to service their IT needs. A long time customer of Rackspace Managed Hosting and Rackspace Email & Apps, FreshBooks is now using The Rackspace Cloud™ to support the needs of its rapidly growing business.

With over 1,000,000 users and growing, FreshBooks offers fast and simple invoicing, expense and time tracking services, which help business professionals spend more time on their work, not their paperwork. A typical customer, FreshBooks claims, is able to get paid an average of 14 days faster using their service with sixty percent of FreshBooks users collecting more money through the service due to timelier billing and improved record keeping.

The Rackspace Cloud offers a suite of services, Cloud Servers™, Cloud Sites™ and Cloud Files™ designed to help companies like FreshBooks minimize the hassles, high costs, and complexities associated with scaling dedicated hardware. Through The Rackspace Cloud, FreshBooks now offers its users expanded capacity, and much faster access to their information.

“As a SaaS vendor, we share a strategic alignment with Rackspace around values for the highest level of customer service,” stated Mike McDerment, CEO, FreshBooks. “At FreshBooks we believe we are a service, not a technology. When you call us, you get a live person and a commitment to solving your problem. Over the years, Rackspace has consistently demonstrated to us the same focus on support and has enabled us to grow our business more quickly because we can concentrate on our core competencies, while Rackspace manages the technology. By moving to The Rackspace Cloud, we can continue to deliver more value to our customers at lower costs to ourselves and our customers.”

Since 2004, FreshBooks has been providing small and medium businesses, consultants, and freelancers with a fast, cost-effective and easy way to create a polished image for their business with a professional web-based invoicing, expense and time tracking service. Users can send invoices by email or ground mail and take advantage of features including recurring billing, employee timesheets, and project management features. Business professionals can customize the look of their billing systems and invoice templates. FreshBooks supports payments with plug-ins like PayPal, Authorize.Net, VeriSign, PSiGate, iTransact, Link Point and more. FreshBooks automatically creates invoices; sends late payment notifications; creates robust reports and can easily import/export data – all with a very simple and easy to use design.

“We are pleased to work with a fast-growing SaaS leader like FreshBooks who is constantly looking for ways to innovate and excel for their customers. We take away the headache of managing hardware to give them more time to develop and grow their business.” stated Emil Sayegh, General Manager, The Rackspace Cloud. “Hybrid hosting allows the Cloud to be used for scalable storage or compute power together with more traditional dedicated managed servers, which is the way we believe computing will be done in the future. I’m glad to see FreshBooks jumping on that train.”

FreshBooks hosts its applications on managed dedicated servers across two Rackspace data centers, for redundancy, and the company’s employee mailboxes are managed by Rackspace Email & Apps. By moving to The Rackspace Cloud, FreshBooks continues to offload non-strategic tasks that need to scale infinitely in order to focus more on their core business function of delivering high quality hosted bookkeeping services to business professionals.

About FreshBooks

FreshBooks, the leader in online invoicing and bookkeeping, helps professionals in over 100 countries save time, get paid faster, look professional and focus on what they love to do — their work. Read our customer survey results — 99% recommend FreshBooks. Our users are served by a tight-knit team of 31 dedicated individuals based in Toronto, Canada who’ve been at this since 2004.

About The Rackspace Cloud

The Rackspace Cloud provides on-demand scalable website, application and storage hosting backed by Fanatical Support®. Through its suite of cloud solutions, Cloud Sites™, Cloud Files™ and Cloud Servers, The Rackspace Cloud enables astute developers and IT managers to minimize the hassles, upfront investments and high costs associated with dedicated hardware while offering the ability to easily scale hosting resources. For more information about The Rackspace Cloud, visit www.rackspacecloud.com or call 1-877-934-0409.

About Rackspace Hosting

As the leader and specialist in hosting services, Rackspace® Hosting is changing the way businesses worldwide buy IT. Rackspace delivers computing-as-a-service, integrating the industry’s best technologies into a flexible service offering, making computing more reliable and affordable. A trusted partner to companies of all sizes, Rackspace enables IT departments to be more effective. Rackspace is distinguished by its award-winning Fanatical Support®, furthering the company’s mission to be one of the world’s greatest service companies. Rackspace is recognized as one of FORTUNE Magazine’s 100 Best companies to work for in the US, ranking number 43 on the list. Rackspace’s portfolio of hosted IT services includes Managed Hosting, Cloud Hosting, and Email and Apps. For more information on Rackspace Hosting please visit www.rackspace.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, any statements concerning expected development, performance or operational results related to any particular customer or customers of our customers associated with our hosting solutions; any other statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include issues relating to the performance of a customer’s configuration caused by forces outside of the control of Rackspace; changes in the economy, technological and competitive factors, regulatory factors, and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended March 31, 2009, filed with the SEC on May 12, 2009 and our Form 10-Q for the quarter ended June 30, 2009, which will be filed with the SEC prior to August 14, 2009. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

About the Author

This is a post written and contributed by Angela Bartels.

Angela runs integrated marketing campaigns for Rackspace. She started at Rackspace in 2003 and has done everything from Linux support, account management, sales, product marketing and now lives in marketing. She left Rackspace in 2005 to work for PEER 1 Hosting but returned in 2009 because she was interested in the cloud computing movement (and has always been a Racker at heart). Angela is a strong believer in the power of storytelling.


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