Support: 1-800-961-4454
1-800-961-2888

Rackspace Appoints Lila Tretikov To Board of Directors

SAN ANTONIO, Sept. 22, 2014 – Rackspace®(NYSE: RAX), the #1 managed cloud company, today announced that Lila Tretikov has joined the Rackspace Board of Directors.Tretikov will serve on the Rackspace Board, while continuing to serve as the executive director of the Wikimedia Foundation, the nonprofit organization that operates Wikipedia. At the Wikimedia Foundation, Tretikov is responsible for leading and setting strategy for the top-ten global site supported by over 70,000 active contributors. This appointment follows George Still Jr.’s decision to step down from his role as a member of the Rackspace Board of Directors, a position he had maintained since 2006. Still’s firm, Norwest Venture Partners, was one of Rackspace’s original investors in March 2000.

Russian-born, Tretikov is a Bay Area technology leader and active member of the open-source community with over 15 years of technology experience. She began her career as an engineer at Sun Microsystems and moved on to found multiple IT startups supporting customers in the telecommunication, retail and banking industries. Most recently, Tretikov served as the Chief Product Officer for the open-source, cloud-based enterprise software vendor SugarCRM, where her responsibilities included leading strategy, engineering, operations, customer support and user experience among other things.

“Lila is a technology industry veteran with a wide breadth of experience – from engineering and product management to marketing and user experience,” said Taylor Rhodes, Rackspace CEO. “Her expertise and commitment to open-source technology make her a valuable addition to Rackspace as we focus on Managed Cloud market leadership. We are excited to welcome her.”

“On behalf of the Board, I thank George for his service to Rackspace through a critically important time in our history,” said Sam Gilliland, lead independent director of the Rackspace Board. “His insights and contributions were invaluable, and we wish him the very best.”

“After eight years of service on the Rackspace Board and as one of the original venture capital investors, I am pleased to be able to leave the Board knowing that it is in good hands and that such an able replacement has been found in Lila,” said George Still Jr., partner emeritus at Norwest Venture Partners. “I am also excited about Rackspace’s future prospects in light of our recent decision to pursue a stand-alone strategy. I expect to see great things from this company that has prospered in spite of the naysayers time and time again throughout its history.”

Prior to beginning her career in tech, Tretikov studied computer science and art at the University of California, Berkeley and holds several patents for intelligent data mapping, dynamic language applications and other technology innovations from her research work in machine learning. Tretikov was awarded the 2012 Stevie® Award for Women in Business and was featured on the Forbes list of “The World’s 100 Most Powerful Women” in 2014.

“Rackspace embodies the ideals and drive for innovation that attracted me to Silicon Valley,” said Tretikov. “I am inspired by the focus on customer excellence that Rackspace personifies, and I am honored to join this team.”

 

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise andFanatical Support®allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.  Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work For.  For more information, 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, including any statements concerning anticipated operational and financial benefits from Rackspace strategies related to additions or changes in leadership, any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the continuation of the current difficult economic conditions or further fluctuations, disruptions, instability or downturns in the economy, the effectiveness of managing company growth, infrastructure failures, technological and competitive factors, regulatory factors, and other risks that are described in our Form 10-Q for the quarter ended June 30, 2014, which was filed with the SEC on August 11, 2014. 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.

 

Rackspace Media Contact:
Monica Jacob
210.312.6745
monica.jacob@rackspace.com

 

Rackspace Ends Formal Evaluation of M&A Transactions; Focus Remains on Managed Cloud Market Leadership

Names Taylor Rhodes CEO and Member of the Board

SAN ANTONIO, TX - September 16, 2014 - Rackspace® (NYSE: RAX), the #1 managed cloud company, today announced it has ended its evaluation of alternatives that would result in Rackspace being acquired. The company declared its commitment to remain independent and announced Taylor Rhodes as CEO to lead and drive its managed cloud strategy.

As previously disclosed in a Form 8-K filed with the Securities and Exchange Commission on May 15, Rackspace had been approached by multiple parties who expressed interest in exploring a strategic relationship, ranging from partnership to acquisition. The board retained Morgan Stanley and Wilson Sonsini Goodrich & Rosati to facilitate a comprehensive review to maximize value for shareholders, customers, and employees. After a comprehensive review, the board decided to terminate M&A discussions. Based on Rackspace’s reaccelerated revenue growth and its potential trajectory for the coming year, the board concluded the company is best positioned to maximize shareholder value by executing its strategy as the #1 managed cloud company.

“We ran a thorough process under the direction of our board of directors, independent advisors, and a Strategic Transaction Committee of the Board,” said Graham Weston, Rackspace co-founder and chairman. “In this process we talked to a diverse group of interested parties and entertained different proposals. None of these proposals were deemed to have as much value as the expected value of our standalone plan. We concluded that the company is best positioned to drive value for shareholders, customers and Rackers through the continued execution of its strategic plan to capitalize on the growing market opportunity for managed cloud services.”

“The board also considered a share repurchase program and determined that, based on the company’s significant opportunities, it is prudent to maintain flexibility at this time to ensure that the appropriate investments can be made to drive our strategy forward. We will continue to evaluate the benefits of implementing a buyback program in the future,” continued Weston.

As detailed in a separate press release issued today, the Rackspace board also named company president Taylor Rhodes to chief executive officer and member of the board, effective immediately. Graham Weston, co-founder, and chairman of the board, who has been serving as CEO of Rackspace since February, will continue to serve as non-executive chairman of the board.

“As a seven year leader of Rackspace, Taylor brings significant experience, dedication and passion to the role of CEO. He was instrumental in the development and execution of Rackspace’s managed cloud strategy that is now delivering strong results,” said Weston. “We are confident that under his leadership, and through the execution of our strategy, Rackspace is well positioned to lead in the large and growing managed cloud category.”

Strategic Plan to Drive Enhanced Value
Earlier this year, Rackspace announced a renewed focus on increasing share in the managed cloud market. Rackspace is targeting businesses and developers that trust it to manage not only their cloud infrastructure but also the many complex tools and applications that run on top of that infrastructure, including the latest databases and ecommerce platforms. By delivering expertise in these highly specialized areas, Rackspace enables customers to stay fast and lean and to focus on their core business.

This strategy has gained traction with customers and industry experts. Recent accomplishments include:

  • For the first time in Rackspace history, the company added more than $20 million of new revenue in a single quarter during the second quarter of 2014.
  • Sequential revenue growth of 4.3 percent, on a constant currency basis, in the second quarter was the highest rate of growth generated since the fourth quarter of 2012. Revenue growth in the multi-tenant public cloud segment accelerated to 7.5 percent sequentially.
  • Rackspace’s leadership in the managed cloud market category was affirmed by Gartner Inc., a leading independent analyst for the IT industry, in its recent Magic Quadrant for Cloud Enabled Managed Hosting.

“Throughout our history, Rackspace has set the standard for managed services in our industry. We are famous for delivering Fanatical Support to over 200,000 customers globally,” said Rackspace CEO and President Taylor Rhodes. “Our underlying strength, as evidenced by our strong second quarter results and the recent traction with customers and industry experts, gives us great confidence in the future. In fact, we remain on track to have a strong third quarter and second half of the year and are comfortable with the guidance ranges we have provided. We are more focused than ever on expanding our leadership of the managed cloud market, and we think the best way to do that is by remaining an independent company.”

Conference Call and Webcast
Rackspace’s executive management will host a conference call to discuss today’s announcements starting today at 4:30 p.m. ET. To access the conference call from the United States and Canada, please dial 800-750-5849, from the United Kingdom, please dial 0800-496-0830, and from Hong Kong, please dial 800-900-872. A live webcast and a replay of the conference call will be available on Rackspace’s website, located at ir.rackspace.com.

About Rackspace
Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Headquartered in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks 29th on Fortune’s list of 100 Best Companies to Work For. For more information, visitwww.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, including any statements concerning expected operational and financial results, long-term investment strategies, growth plans, expected results from the integration of technologies and acquired businesses, or the performance or market share relating to products and services; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include infrastructure failures; the deterioration of economic conditions or fluctuations, disruptions, instability or downturns in the economy; the effectiveness of managing company growth; technological and competitive factors; regulatory factors; and other risks that are described in Rackspace Hosting’s Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014, and in Rackspace Hosting’s Form 10-Q for the quarter ended June 30, 2014. 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.

Media Contact:
Brandon Brunson
210.312.1357
brandon.brunson@rackspace.com

Rackspace Names Taylor Rhodes as CEO and a Member of the Board of Directors

SAN ANTONIO, TX - September 16, 2014 - Rackspace® (NYSE: RAX), the #1 managed cloud company, today announced that its board of directors has named Taylor Rhodes to be the company’s chief executive officer as well as a member of the board, effective immediately. Rhodes is a Rackspace veteran who has served in a variety of leadership positions within the company since 2007, including several roles directly responsible for delivering Rackspace’s renowned Fanatical Support® to customers globally. He retains his previous role as president and remains responsible for the company’s operations worldwide. Rackspace co-founder, Graham Weston, who has served as CEO and chairman since February, now is non-executive chairman of the board.

 “Our board conducted a thorough search of highly qualified internal and external candidates, and we are confident that Taylor is the right person to lead Rackspace through its next phase of growth,” said Sam Gilliland, lead independent director of the Rackspace board. “Throughout his tenure, Taylor has proven himself to be an inspiring leader, a strategic thinker and a committed Racker. On behalf of the board, I look forward to working closely with Taylor as we embark on our next chapter together. I would also like to thank Graham for his leadership during this transition period. As always, he guided us with vision and passion.”

Weston added, “With each new role and challenge that Taylor has taken on, he has demonstrated inspiring leadership, delivered results and displayed passion for Rackspace and our customers. Importantly, he has played a critical role in the development and execution of the company’s strategy to renew its focus on managed cloud market leadership, actions which are driving the reacceleration of the company’s results and underpinning our positive outlook.”

“I would like to thank the board for its confidence in me, and Graham for providing the leadership that has helped Rackspace become the #1 managed cloud company,” said Rhodes. “Graham has been a valued mentor to me, and I look forward to his continued guidance and advice. I am confident that we are in the early days of massive transformation of the IT industry and we are well-positioned to win market share and customers that value our expertise.”

About Taylor Rhodes
Rhodes joined Rackspace in 2007 to lead the business unit responsible for delivering Fanatical Support to more than 1,000 of the company’s largest and most complex customers. Previously, Rhodes served as president since February. Prior to that, he was senior vice president and chief customer officer responsible for Rackspace’s global sales and Fanatical Support organizations. He worked closely with the product and marketing teams to develop the company’s differentiated managed services strategy, and was specifically responsible for leveraging the power of the hybrid cloud, open and standard technologies, and Fanatical Support to acquire new customers and grow relationships with existing customers.

Rhodes also served as senior vice president and managing director, international, where he was responsible for developing the company’s strategic priorities and creating business growth across international markets in Europe, Asia and Australia. Before that, he helped launch Rackspace Enterprise Services, a business unit that accelerated the company’s expansion of services to larger customers.

Before joining Rackspace, Rhodes worked at EDS in a series of progressively more challenging leadership roles, managing end-to-end relationships with large global customers. He served in the U.S. Marine Corps as an infantry officer and holds an MBA degree from The University of North Carolina at Chapel Hill.

Conference Call and Webcast
Rackspace’s executive management will host a conference call to discuss today’s announcements starting today at 4:30 p.m. ET. To access the conference call from the United States and Canada, please dial 800-750-5849, from the United Kingdom, please dial 0800-496-0830, and from Hong Kong, please dial 800-900-872. A live webcast and a replay of the conference call will be available on Rackspace’s website, located at ir.rackspace.com.

About Rackspace
Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Headquartered in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks 29th on Fortune’s list of 100 Best Companies to Work For. For more information, 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, including any statements concerning expected operational and financial results, long-term investment strategies, growth plans, expected results from the integration of technologies and acquired businesses, or the performance or market share relating to products and services; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include infrastructure failures; the deterioration of economic conditions or fluctuations, disruptions, instability or downturns in the economy; the effectiveness of managing company growth; technological and competitive factors; regulatory factors; and other risks that are described in Rackspace Hosting’s Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014, and in Rackspace Hosting’s Form 10-Q for the quarter ended June 30, 2014. 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.

Contacts:
Media Contact:
Brandon Brunson
210.312.1357
brandon.brunson@rackspace.com

ObjectRocket by Rackspace Adds High Performance Redis Data Store

Simplifies Application Development with Instant-on, High Performance, Highly Available Redis Instances in the Cloud

SAN ANTONIO – August 14, 2014 – Rackspace® (NYSE: RAX), the #1 managed cloud company, today announced the addition of Redis to ObjectRocket, its managed data service. ObjectRocket for Redis simplifies application development by providing instant-on, high performance, highly available Redis instances.

“Redis in production shouldn’t be a do-it-yourself proposition,” said Chris Lalonde, senior director of product at ObjectRocket by Rackspace. “With ObjectRocket for Redis, we are giving developers the same pain relief we’ve provided with ObjectRocket for MongoDB. We monitor, manage and support the database so developers can focus on building their applications.”

 

Key features of ObjectRocket for Redis include:

  • High Availability – Every instance comes automatically configured with a secondary node and free backups. Should a primary node fail, the system seamlessly fails over to the secondary node.
  • Fully Managed Service with 24×7 Expert Support – ObjectRocket for Redis is backed by Redis specialists 24x7x365 who proactively monitor and fix infrastructure issues, assist with data migrations and fine-tune Redis configurations. These specialists can also provide architecture advice and data best practices.
  • Simplified Operations – One click provisioning, standardized configurations and advanced administration capabilities make it easy for developers to focus on building their product while leaving the tasks of maintaining, scaling and supporting Redis to the experts.
  • High Performance – Optimized specifically for Redis, ObjectRocket for Redis uses a containerized approach that eliminates the noisy neighbor issues associated with traditional virtualization.  Like all of the company’s offerings, ObjectRocket for Redis was built from the ground up for performance, from the network to the OS to Redis itself. ObjectRocket for Redis was designed holistically to provide the best possible performance.
  • High Bandwidth – By directly peering with multiple networks, it doesn’t matter where customers host their application – ObjectRocket for Redis is only a few milliseconds away.  So customers can host their applications where they want and leave the database work to ObjectRocket.

ObjectRocket for Redis is available in the Rackspace U.S.-East data center, with availability in all U.S. datacenters and London by September 2014.  Customers can provision highly available Redis cluster nodes from 500MB to 50GB+ via the ObjectRocket control panels and API.

For more information on ObjectRocket for Redis, please visit: http://www.objectrocket.com/redis

About ObjectRocket by Rackspace

ObjectRocket is the managed service for MongoDB and Redis that simplifies the developer’s life.  Highly available, infinitely scalable and supported by experts, customers get a fast and simple solution. With ObjectRocket for Redis, backups are always free.

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work Forrackspace.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, including any statements concerning expected development, performance or market acceptance associated with ObjectRocket services for Redis; anticipated operational and financial benefits from ObjectRocket services for Redis; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from ObjectRocket services for Redis may not materialize because this service is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the service cost effectively, differentiate the product from competitive services or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the services, (iii) changes in technology which adversely affect the services’ benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the services, and (vi)  and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended June 30, 2014, filed with the SEC on August 11, 2014. 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. 

Media Contact:

Brandon Brunson

brandon.brunson@rackspace.com

210.312.1357

Rackspace Announces Enhanced DevOps Automation Service with New Support Features and DevOps Advisory Service

DevOps Expertise Empowers Customers to Be More Agile and Innovative with their Infrastructure

SAN ANTONIO – Aug. 12, 2014 – Rackspace® (NYSE: RAX), the #1 managed cloud company, today announced new features to its DevOps Automation Service including Windows Support and expanded environment stack support. Rackspace also launched a new DevOps Advisory Service for broader DevOps transformation engagements. Available in the U.S. and UK, enhancements to the Rackspace DevOps Automation Service offering provide customers with additional services and Fanatical Support® through the new managed operations service level.  These enhancements will help customers design, manage and scale their cloud operations and enable a continuous application delivery model.

“It’s our mission to help our customers realize the immense benefits of adopting DevOps principles in this fast growing and dynamic cloud era,” said Prashanth Chandrasekar, GM of Rackspace’s DevOps Business Segment. “Since the initial launch of the Rackspace DevOps Automation Service last year, we have been helping customers automate their application environments by treating their infrastructure like code and providing deep performance monitoring capabilities. This has enabled them to deploy features faster, quickly scale out their technology infrastructure and improve developer productivity. We are now offering a range of additional technology stacks as part of our DevOps offering to help customers build applications even faster using leading technologies. In addition, we are launching a new DevOps Advisory Service to help companies accelerate their internal transformation to adopt DevOps principles and methodologies.”

Rackspace DevOps Automation Service is also expanding its scope to support Windows and new environment stack features, including:

  • Windows Support: Rackspace DevOps Automation Service now supports Windows, featuring Microsoft DSC, an extension of PowerShell. With Windows support, the service utilizes Rackspace modules to deploy infrastructure quickly and consistently, using Desired State Configuration (DSC) and source-controlled code. Customers will also be able to take advantage of orchestration and monitoring that will help deploy and maintain more reliable application environments.
  • Expanding Environment Stacks: Rackspace now supports the following environment stacks, which can be deployed in hours on the Rackspace Hybrid Cloud: Chef, Rails, Node.js, PHP, Tomcat and Python. Customers can use recommended stack architectures and will receive updates, security patches and the latest versions of environment stacks, which are constantly maintained and tested by Rackspace DevOps engineers.

“At WePay, we have doubled our transaction volume from December to March of this year which puts a huge load on our servers,” said Bill Clerico, CEO at WePay. “Rackspace specialists help set up Chef scripts, configure our servers, configure monitoring and more. In fact, with Rackspace DevOps Automation Service, we were able to spin up basically an entire new data center at Rackspace in the time that it would have taken us to add just couple of servers in our internal set up.”

In addition to its enhanced DevOps Automation Service, Rackspace is also launching its new DevOps Advisory Service. Rackspace DevOps specialists work with customers from stakeholder through front-line levels to help map and plan that organization’s shift to DevOps practices.  Rackspace’s transformation methodology leverages DevOps foundations to assess each customer’s current capability and manage gaps. The service then uses a variety of methods to help drive progress, including:

  • DevOps Workshops: Rackspace is working with customers to perform a range of services including application assessment, transformation planning and knowledge transfer, plus enablement around key areas like Configuration Management Tools, Provisioning and Deployments, Continuous Integration, Continuous Delivery (CI/CD) and Monitoring.
  • DevOps Strategy Planning: Rackspace DevOps specialists work with customers to understand their requirements and help create a custom project plan for their business needs and timeline.
  • DevOps Professional Services: Rackspace provides access to DevOps professional services, from writing infrastructure code to designing structure and building migration plans for applications. This helps customers automate, deploy and test their infrastructure for their main applications, or a set of proof of concepts that the customer helps build.

“We’ve seen a sharp rise in interest in DevOps across the board,” said Michael Coté, research director at The 451.   “In one of our recent DevOps studies, just over 50 percent of companies were eager to speed up the release cycle for their software.  We feel that they’re looking to use that higher velocity as a competitive advantage. At this point in the market, getting started in DevOps and thriving with it can take time and skilled staff, so new offers such as the Rackspace DevOps Advisory Service, which help speed up the process and augment in-house talent, will be welcome.”

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.  Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work For. 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, including any statements concerning expected development, performance or market acceptance associated with Rackspace DevOps Automation and Advisory Services; anticipated operational and financial benefits from Rackspace DevOps Automation and Advisory Services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from Rackspace DevOps Automation and Advisory Services may not materialize because this service is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the service cost effectively, differentiate the product from competitive services or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the services, (iii) changes in technology which adversely affect the services’ benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the services, and (vi)  and other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended June 30, 2014, filed with the SEC on August 11, 2014. 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.

 

Rackspace Media Contact:

Christina Weaver

Christina.weaver@rackspace.com

210-312-4593

 

Rackspace Announces OnMetal Cloud Servers General Availability and Pricing

API-driven bare metal servers optimized to deliver greater value and high performance for workloads at scale

SAN ANTONIO – July 24, 2014 – Rackspace (NYSE: RAX), the #1 managed cloud company, today announced the general availability and pricing of OnMetal™ Cloud Servers — an API-driven, single-tenant Infrastructure-as-a-Service offering. The product is designed for customers with rapidly growing infrastructure footprints who seek the agility and elasticity of cloud along with the simplicity and cost-efficiency of colocation.

OnMetal Cloud Servers are built with an Open Compute design with no moving parts and provide enhanced reliability for large-scale applications. In addition, these servers are optimized for workloads at scale such as databases, low-latency caching and handling a large number of web requests.

“OnMetal Cloud Servers are an essential piece of our managed cloud portfolio.  They provide a significant performance advantage over virtualization-based alternatives at a competitive price point,” said Taylor Rhodes, president of Rackspace. “These servers, combined with Fanatical Support®, provide businesses with a faster, more nimble solution that delivers better overall value with higher performance.”

Product Highlights

  • OnMetal Compute – Features 10 cores and 32GB RAM.  This flavor can power large-scale web servers, application servers, queue processors and load balancers. In recent SysBench benchmark testing, OnMetal Compute was approximately 14 percent faster than the tested virtualized counterpart. The OnMetal Compute flavor also performed nearly twice as fast as its tested virtualized counterpart in UnixBench testing.  In addition, OnMetal Compute offers the highest number of cores per dollar versus comparable virtualized products.
  • OnMetal Memory – Features 12 cores and 512GB RAM that can power caches, search indexes and in-memory analytics. This flavor is optimized for the most GB of RAM per dollar versus other comparable solutions.
  • OnMetal I/O – Features 20 cores, 128GB RAM, 3.2TB PCIe flash drive, which can power large NoSQL data stores, traditional SQL databases and Online Transaction Processing (OLTP) applications. This flavor maximizes the number of database transactions per dollar. PostgreSQL benchmark (pgbench) showed nearly a 2x increase in transactions per second compared to the closest Rackspace comparable virtualized offering (Performance 2-120GB).

For full results of the benchmark tests referenced above, please see Rackspace’s latest OnMetal blog post.

Pricing Structure

Customers are billed by the minute and the prices below reflect the cost for an average month. OnMetal Cloud Servers are offered with Rackspace’s two new Managed Cloud service levels: Managed Infrastructure and Managed Operations. Customers will automatically receive volume discounts if their total cloud compute usage exceeds $5,000 per month.

“Rackspace has a clear edge in delivering both managed OpenStack powered private clouds and OpenStack-based public clouds. Using that edge to bridge the gap between dedicated servers and IaaS with this OnMetal offering will expand the range of choices for Rackspace customers,” said Carl Brooks, research analyst at the 451.

OnMetal Cloud Servers are currently available in the Rackspace Northern Virginia data center and will become available at other North American data centers later this year. The servers will be available in Rackspace’s International regions in 2015.

To learn more about OnMetal Cloud Servers and pricing, please visit http://www.rackspace.com/cloud/servers/onmetal/.

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.  Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work Forrackspace.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 facts are statements that could be deemed forward-looking statements, including any statements concerning expected development, performance or market acceptance associated with OnMetal Cloud Servers; anticipated operational and financial benefits from OnMetal Cloud Servers; any statements of expectation or belief directly relating to Rackspace business derived from the benchmark results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from OnMetal Cloud Servers may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely affect the product’s benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product; and (vi) other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. 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.

 

Rackspace Media Contact:

Brandon Brunson

210-312-1357

brandon.brunson@rackspace.com

Rackspace Positioned in the Leaders Quadrant of Gartner’s Magic Quadrant for Cloud-Enabled Managed Hosting in both North America and Europe

Rackspace’s Managed Cloud Strategy’s Evaluation Based on Completeness of Vision and Ability to Execute

San Antonio, July 17, 2014 – Rackspace (NYSE: RAX), the #1 managed cloud company, today announced it has been positioned by Gartner, Inc. in the Leaders quadrant of the “Magic Quadrant for Cloud-Enabled Managed Hosting” in both North America and Europe.

The Gartner assessment, performed by the firm’s IT industry experts, evaluates providers based on the completeness of their vision and their ability to execute. It categorizes providers in quadrants labeled Niche Players, Challengers, Visionaries, and Leaders. Rackspace was among the 17 providers assessed by Gartner, and one of only two in the Leaders quadrant in North America. In Europe, the firm analyzed 17 providers and Rackspace is one of seven in the Leaders quadrant.

“We believe Gartner’s first-ever Magic Quadrant for Cloud-Enabled Managed Hosting signals the emergence of the managed cloud market and the rising demand for a trusted partner to help companies manage their cloud operations,” said Taylor Rhodes, president of Rackspace.  “We feel that the recognition of Rackspace as a leader speaks to the value that businesses of all sizes find in our managed cloud services portfolio, and our technical expertise and Fanatical Support®.  A fundamental part of our mission is to help companies stay fast and lean, rather than swelling their payrolls with engineers to manage IT that doesn’t differentiate their business.”

The majority of all computing is still conducted in house or via colocation, and with infrastructure-rental costs falling dramatically, a new wave of cloud adoption is building. These new adopters, including many large enterprises, want all the power of the cloud without the pain of having to become an expert in dozens of fast-changing cloud technologies. Through its specialized expertise in those technologies, Rackspace serves as a trusted partner and enables businesses to focus their scarce developer talent in ways that set them apart in the marketplace, like building new products and services.

Rackspace has been a leader in the Gartner Magic Quadrant for the Managed Hosting, North American and European markets for two consecutive years and has rapidly expanded its managed services expertise into the public cloud market.  We believe the company’s managed cloud services, along with its unique combination of hybrid cloud, open technologies and Fanatical Support helps Rackspace differentiate itself from vendors who only provide access to multi-tenant cloud infrastructure.  Rackspace gives customers a level of support and expertise found nowhere else.

Rackspace’s managed cloud specialized expertise includes not only cloud infrastructure, but also expertise in many complex applications and tools that run on top, including DevOps automation tools, MongoDB, Hadoop, Redis, MySQL, Magento, Oracle ATG, Adobe Experience Manager, Sitecore, Drupal, WordPress, SharePoint and others.  With a strong and growing customer base, Rackspace serves more than 200,000 business customers around the world, including 60 percent of the Fortune® 100 companies.

For more information on Rackspace’s position as a leader in Gartner’s Magic Quadrant for Cloud-Enabled Managed Hosting in North America and Europe, view the latest blog post from Rackspace President Taylor Rhodes.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

 

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.  Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work Forrackspace.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, including any statements about historical results or third party data that may suggest trends for our business or industry; any statements of the plans, strategies, and objectives of Rackspace for future operations or growth; any statements of expectation or belief regarding future events, and any statements of assumptions underlying any of the items mentioned. Risks, uncertainties and assumptions include the possibility that expected growth or success may not materialize because of Rackspace’s failure to create a viable vision or its inability to execute on its vision, failure to execute on its operational plans, rapid technological changes that adversely affect the demand for Rackspace products and services, shifts in customer demand, customers’ and potential customers’ acceptance of Rackspace products and services, and other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. 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.

Rackspace Goes All In on Managed Cloud Market Segment

  • New Enhanced Service Levels for Public Cloud Customers
  • Transparent Pricing Model
  • Rackspace Cloud Monitoring is Now Free for All Customers
  • New developer+™ Program as an On-Ramp to Managed Cloud

SAN ANTONIO – July 15, 2014 – Rackspace (NYSE:RAX), the managed cloud company, today announced a new strategy to deliver public cloud services to the market based on its core strength in exceptional customer service, known as Fanatical Support®.  The company’s managed cloud strategy focuses on businesses and developers looking for a strong partner to help design, manage and scale their cloud operations.

The company enhanced its managed cloud service levels and launched a more transparent service-based pricing model that represents a clear view of infrastructure pricing and emphasizes the value of Rackpace’s cloud management expertise.  In addition, Rackspace announced developer+, a new program for developers that offers essential services needed to build scalable applications.  The program enables developers to easily sample Rackspace managed cloud services and Fanatical Support.

“The cloud market is evolving.  More customers are looking for a trusted partner with specialized expertise to help manage their cloud.  Rackspace is ideally positioned to lead this managed cloud segment of the market,” said Graham Weston, Rackspace co-founder and CEO. “Our new service levels will help businesses tap the power of the cloud without the pain of recruiting experts in dozens of complex technologies. We are the partner that will be with them every step of the way to help make their cloud strategy successful.”

New Enhanced Managed Service Levels

Both service levels – Managed Infrastructure and Managed Operations – feature more services and expertise at lower total cost than companies would spend managing cloud operations on their own.  Highlights include:

Managed Infrastructure – This service level offers a package of benefits for customers that far exceed equivalent services from any other cloud provider. Customers will receive renowned Fanatical Support, which features architecture advisors, security guidance, code development assist, launch assistance, and 24×7 access to cloud engineers.

Managed Operations – This service level provides customers with Fanatical Support and all the services included at the Managed Infrastructure level, plus additional proactive features such as a dedicated account manager, 24×7 availability monitoring and response, and management of common operating systems and application stacks. Rackspace offers two approaches to deliver its Managed Operations service level to customers.  In one approach, Rackspace logs into the customer’s servers to manage and, when necessary, help fix them.  The other approach leverages Rackspace DevOps Automation Service, which manages a customer’s infrastructure as code, to help it achieve faster deployments and streamlined operations.

In addition, monitoring and enabling customers to have real-time visibility into  their infrastructure is an essential part of the Rackspace Managed Cloud strategy.  Customers on both managed cloud service levels will now receive Rackspace Cloud Monitoring at no charge.  For Managed Operations customers, cloud engineers will also watch the customer’s monitors and respond 24×7 to alerts.

Rackspace’s enhanced service levels also provide additional value and offer a service level agreement that is not available with other providers.  Customers on the Managed Operations service level will see SLA credits doubled, up to 100 percent of their fees for the affected components for that month’s billing period.

In addition, Rackspace is highlighting the value it provides over unmanaged cloud providers by offering cloud deployment planning and the availability of proactive assistance included in all of its service levels. Managed Operations customers with planned high traffic events will be able to work with Rackspace to help design their managed cloud infrastructure to cope with the expected levels of traffic.  In addition, Managed Operations customers will have access to a new SLA for these events.  Now in limited availability, the SLA provides a 10x accelerated credit during these planned events for up to 200 percent of the customer’s fees for the affected components during that month’s billing period, subject to certain restrictions.

“Rackspace is a huge part of our application development,” said Guillaume Aubuchon, CTO at DigitalFilm Tree, which provides pre- and post-production services to the movie industry.  “It’s crucial that we have instant access to someone who knows both Rackspace’s infrastructure and our application to help guide and support us as we scale up or build out new features. The value of Rackspace Managed Cloud goes well beyond that. Without Rackspace, we would spend more than $100,000 per year on an in-house engineer to keep our Critique servers running 24×7. Rackspace lets us focus on work that will grow our application and make our business more efficient and profitable.”

New Transparent Public Cloud Pricing Model

Rackspace’s new pricing model applies to all new public cloud customers, and is optional for existing ones.  It features more transparency by highlighting the price of cloud infrastructure as distinct from service and support.  This model allows customers to more accurately compare the true cost of cloud infrastructure from provider to provider.  For instance, Rackspace’s Performance Cloud Servers start at 3.2¢ per hour for 1GB server. These include RAID 10 SSD, redundant components, and ECC RAM all running in highly reliable Rackspace data centers.  It also delivers more clarity around all the services that Rackspace provides — services that customers of unmanaged cloud providers have to obtain on their own by hiring engineers.

Managed Infrastructure service level offers an hourly service level rate of $0.005/GB RAM, with a $50 per month minimum, plus standard infrastructure rates.

Managed Operations service level offers an hourly service level rate of $0.02/GB RAM, with a $500 per month minimum, plus standard infrastructure rates.

With this pricing model, customers will be able to see their infrastructure pricing in comparison to the market.

Rackspace also will continue to provide volume pricing discounts, so as a customer grows, the price of additional servers declines. These discounts are automatically applied.  As a customer grows, its unit cost will decrease.  Volume discounts range from 4 percent to 24 percent and will start at compute usage rates of $5,000 a month.

“Competition in the public cloud market has accelerated in the past year; however, Rackspace’s managed cloud approach provides an opportunity for significant differentiation from the rest of the pack,” said Melanie Posey, research vice president at IDC.  “Rackspace’s new managed cloud strategy featuring enhanced SLAs and its long track record in delivering superior support will create sustainable competitive advantage in an increasingly crowded market.”

developer+ Program

Rackspace’s new developer+ program provides an infrastructure credit for a package of cloud services for a limited time.  It is designed for developers who want to stay fast and lean and focus their engineering talent on building their app, rather than swelling their payroll with engineers who manage IT operations that don’t differentiate their business. This program paves the way for customers to grow with Rackspace, and to understand and adopt its hybrid and specialized services. This program empowers developers not only to experience Rackspace’s offerings, but to also build and scale out cloud applications leveraging the full Rackspace cloud portfolio, including the recently announced OnMetal product.

For customers participating in the developer+ program, Rackspace will provide an Infrastructure credit, which can cover a Performance Cloud Server, a Cloud Load Balancer, Cloud Monitoring, Cloud Networks, Cloud Backups, Cloud Files, Cloud DNS and built-in Email as a Service via Mailgun, for example.  In addition, developer+ customers will be able to consume all other Rackspace cloud services in any region at the adjusted infrastructure prices without the bundled service level rates.

Developers will have access to public forums, IRC support, online documentation, direct access to Rackspace developers, alongside a fully redesigned developer portal.  Developers are eligible to participate in this program for up to 12 months before transitioning to either the Managed Infrastructure or Managed Operations service levels. The developer+ program will be available to customers in late July.

For additional information on Rackspace’s managed cloud strategy and new offerings, please read the blog by Rackspace President, Taylor Rhodes.

About Rackspace

Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.  Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Based in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work Forrackspace.com.

 

Forward Looking Statement

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, including any statements concerning expected development, performance or market acceptance associated with Rackspace Managed Cloud Services and developer+ program; anticipated operational and financial benefits from Rackspace Managed Cloud Services and developer+ program; any statements concerning expected development, performance or operational results related to any particular customer or customers of our customers associated with our managed cloud solutions; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from Rackspace Managed Cloud Services and the developer+ program may not materialize because these services are not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the services cost effectively, differentiate the services from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the services, (iii) changes in technology which adversely affect the services’ benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the services, (vi) issues relating to the performance of a customer’s configuration caused by forces outside of the control of Rackspace; and (vi) other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. 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.

Media Contact:

Brandon Brunson

brandon.brunson@rackspace.com

ObjectRocket to Demonstrate New Features at MongoDB World

Free Backups for MongoDB Databases Hosted Anywhere, Automated Online Compaction and Rapid Database Deployment

NEW YORK – June 25, 2014 – ObjectRocket, the managed service for MongoDB from Rackspace (NYSE: RAX), will demonstrate Automated Online Compaction and its rapid-deployment API on stage at MongoDB World June 25 in New York City and extend its free backup service to MongoDB databases hosted with any provider.

“Free backups should be table stakes for MongoDB as a service,” said Kenny Gorman, co-founder and chief architect at ObjectRocket. “We’re extending the free backups our customers already enjoy to MongoDB users anywhere. Simply add your instance to the ObjectRocket interface and get your data backed up.”

In its MongoDB World keynote, ObjectRocket will demonstrate new market-leading features and functionality for its database as a service.

ObjectRocket offers MongoDB users a one-click, automated compaction solution, effectively eliminating the need for what can be a difficult and time consuming manual database maintenance process. Automated Online Compaction allows MongoDB instances to be compacted online and in the background on the ObjectRocket platform.

“Databases tend to fragment over time as free space is created and reused and MongoDB is no exception,” said Gorman. “Automated Online Compaction allows customers to have a clean and compact database without major downtime. The compaction process happens in the background and requires only a brief step-down to finish.”

The new feature was the direct product of the need ObjectRocket saw working with some of the most demanding MongoDB users. “We spent a lot of time manually keeping our customers databases compact,” Gorman said. “We created Automated Online Compaction to do the work our customers needed without having such long maintenance downtime.”

Database maintenance is a major concern for MongoDB users, but initial setup is one of the biggest challenges to users designing a fast, scalable database for the first time.  ObjectRocket makes it quick and easy to configure a highly-available cluster – using either a RESTful API, or a full-featured web interface. All instances provide features such as three-member replica sets, pre-configured sharding, auto-compaction to eliminate fragmentation, fully redundant mongoS and config servers, fast SSL encryption, and free backups. Databases are configured on purpose-engineered, enterprise class hardware with fast Fusion-IO storage and containers to allow that plenty of resources are always on-tap.

Any instance created on ObjectRocket comes with free backups, 24x7x365 support and integration with New Relic.

Learn more: http://blog.objectrocket.com/

Follow: @ObjectRocket

About ObjectRocket Services

ObjectRocket is the managed service for MongoDB from Rackspace that makes the NoSQL database highly available, easy to deploy and simple to maintain.

About Rackspace

Rackspace (NYSE: RAX) is the managed cloud specialist. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each company the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Headquartered in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work For. www.rackspace.com

Forward Looking Statement

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, including any statements concerning expected development, performance or market acceptance associated with ObjectRocket services; anticipated operational and financial benefits from ObjectRocket services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from ObjectRocket services may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely effect the product’s benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product, and (vi) other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. 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.

Rackspace Media Contact:

Brandon Brunson

210-312-1357

brandon.brunson@rackspace.com

Rackspace Launches OnMetal Cloud Servers to Reduce Cloud Complexity and Help Cloud Apps Scale

API-Driven Bare-Metal Servers Can Be Spun Up as Quickly as VMs, Providing the Agility of Multi-Tenant With the Performance of Single-Tenant

SAN ANTONIO, TX- June 19, 2014 – Rackspace® Hosting (NYSE: RAX) today announced OnMetal Cloud Servers — an API-driven, single-tenant Infrastructure-as-a-Service offering designed for customers with rapidly growing infrastructure footprints who seek the agility and elasticity of cloud along with the simplicity and performance of colocation.

“The rising complexity of the multi-tenant cloud affects applications in a variety of ways,” said Taylor Rhodes, president of Rackspace. “Virtualization and sharing a physical machine are fantastic tools for specific workloads at certain scale; however, we’ve learned that the one-size-fits-all approach to multi-tenancy just doesn’t work once you become successful, so we created OnMetal to simplify scaling for customers to stay fast and lean with a laser-sharp focus on building out their product.”

Noisy neighbors in multi-tenant environments can degrade network latency, disk I/O and compute processing power, which can create unpredictable application performance. Rackspace is tapping into its expertise in scaling applications to offer a solution that helps to eliminate the pain points typically associated with the current, predominant model.

“What’s exciting about bare metal with an API is that you get all the benefits of cloud infrastructures, such as full automation and writing software to manage your servers, but without any of the compromises on performance or reliability,” said Alex Polvi, CEO of CoreOS. “Running CoreOS on OnMetal Cloud Servers, you get a host operating system that is optimized for efficiency and ready to run your container-based applications from first boot.”

OnMetal Cloud Servers are built with Open Compute Project spec’d hardware and powered by OpenStack®. The servers come in three different sets of specifications, each custom designed and built for workloads commonly associated with large web scale applications:

  • Compute-optimized configuration – 20 threads and 32GB RAM; can be used to power large-scale web servers, application servers, queue processors and load balancers.
  • Memory-optimized configuration – 24 threads and 512GB RAM; can be used to power caches, search indexes and in-memory analytics.
  • I/O-optimized configuration – 40 threads, 128GB RAM, 3.2TB PCIe flash drive that can be used to power large NoSQL data stores, traditional SQL databases and OLTP applications.

Customers also rely on Fanatical Support® to manage the complexity of running their infrastructure on their behalf. By default, every OnMetal Cloud Servers customer gets access to specialists at Rackspace to optimize their application architecture, assist with code debugging and monitor their infrastructure.

“We’ve all been trained to think of the cloud as generic virtual machines on demand. VMs have had their decade. The future ‘Cloud’ will be built with containers deployed across bare-metal servers provisioned via API,” said Zack Rosen, CEO of Pantheon, a Rackspace customer in the early access program of OnMetal Cloud Servers. “We believe Rackspace’s OnMetal service is the future of Infrastructure-as-a-Service. It’s simply more efficient — you get the performance and cost-efficiency of single-tenant servers and agility with containers that blows away what you can do with VMs.”

OnMetal Cloud Servers are available for testing under limited availability and expected to enter general availability in the Rackspace Northern Virginia data center this July. This will give customers outside of North America the chance to test and plan how to best take advantage of this exciting new technology before it is available in Rackspace’s international data centers in 2015. To learn more, please visit www.rackspace.com/onmetal.

About Rackspace
Rackspace (NYSE: RAX) is the managed cloud specialist. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each company the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack®, the open-source operating system for the cloud. Headquartered in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks #29 on Fortune’s list of 100 Best Companies to Work For. 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, including any statements concerning expected development, performance or market acceptance associated with OnMetal Cloud Servers; anticipated operational and financial benefits from OnMetal Cloud Servers; any statements concerning expected development, performance or operational results related to any particular customer or customers of our customers associated with our cloud solutions; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from OnMetal Cloud Servers may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely affect the product’s benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product, (vi) issues relating to the performance of a customer’s configuration caused by forces outside of the control of Rackspace; and (vi) other risks that are described in Rackspace Hosting’s Form 10-Q for the year ended March 31, 2014, filed with the SEC on May 12, 2014. 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.

Image Available: http://www.marketwire.com/library/MwGo/2014/6/19/11G017251/Images/OCPserver-258296659544.jpeg

 Rackspace Media Contact:

Andre Lenartowicz
210-312-1360
andre.lenartowicz@rackspace.com

Racker Powered
©2014 Rackspace, US Inc.