Rackspace Earns a Spot on 2010 InformationWeek 500 List of Top Technology Innovators Across America

Rackspace® Hosting (NYSE: RAX), the world’s leading specialist in the hosting and cloud computing industry, today announced that it earned a spot on this year’s InformationWeek 500, an annual listing of the nation’s most innovative users of business technology.  Rackspace debuted on the list for its Opportunity 2 Online (O2O) project, an internal business process optimization initiative that helped minimize order errors, decrease cycle time and improve customer service and satisfaction, thus enhancing the company’s commitment to its hallmark customer service, which it calls Fanatical Support®. The 2010 list was revealed last night at a gala awards ceremony during the exclusive InformationWeek 500 Conference.

“Our dedication to providing Fanatical Support drives our business, and to deliver on that commitment we have taken a big step to improve our efficiency in processing customer requests,” said Steve Mills, CIO of, Rackspace Hosting.  “We’re honored to have our accomplishment recognized by InformationWeek. The O2O project has not only improved the way we work as a company, but it helps ensure that every day we provide more than 100,000 customers with a level of support they can’t get anywhere else.”

Rackspace launched the O2O project in 2009 when it saw an opportunity to improve cycle time and accuracy of its business processes. Rackspace set a goal of reducing order errors and shortening business cycle times to better support its customers.  The project is a cross-functional undertaking that involves every business unit, and ultimately impacts the efficiency of all 3,000 Rackspace employees. The O2O system was designed and built on Ruby on Rails using Agile development processes. The system’s new features, tools and processes are utilized by a dedicated, full-time staff.

Because of the success of O2O, Rackspace has achieved a higher rate of order accuracy, a reduced cycle time from contract-to-online, standardized processes throughout the large organization and a new approach to its pricing strategy.  “With the introduction of O2O, Rackers are free to focus more of their energy on Fanatical Support, the component of our business that sets Rackspace apart from other service providers” said Mills.

“For 22 years, the InformationWeek 500 has honored the most innovative users of business technology,” said InformationWeek Editor In Chief Rob Preston. “As we start to emerge from the worst recession in decades, the IT focus is now on driving growth—new sources of revenue, new relationships with customers, even new business models. This year’s ranking placed special emphasis on those companies and business technology executives leading that charge.”

InformationWeek identifies and honors the nation’s most innovative users of information technology with its annual 500 listing and also tracks the technology, strategies, investments and administrative practices of America’s best-known companies.  Top winners included:  CME Group, Conway, National Semiconductor, Kimberly-Clark, Hilton Hotels and Unum.  The InformationWeek 500 rankings are unique among corporate rankings as it spotlights the power of innovation in information technology, rather than simply identifying the biggest IT spenders.

Additional details on the InformationWeek 500 can be found online at www.informationweek.com/iw500/.

About InformationWeek Business Technology Network (http://www.informationweek.com/)

The InformationWeek Business Technology Network provides IT executives with unique analysis and tools that parallel their workflow – from defining and framing objectives through to the evaluation and recommendation of solutions. Anchored by InformationWeek, the multimedia powerhouse that looks across the enterprise, the network scales across the most critical technology categories with online properties like DarkReading.com (security), IntelligentEnterprise.com (application architecture), NetworkComputing.com (networking and communications) and PlugintotheCloud.com (cloud computing). The network also provides focused content for key IT audiences, such as CIOs, developers, SMBs and IT Support Managers via InformationWeek Global CIO, Dr. Dobb’s, InformationWeek SMB, and HDI respectively, as well as vital vertical industries with InformationWeek Financial Services, Government and Healthcare sites. Content is at the nucleus of our information distribution strategy, and the network provides a deep and rich portfolio of decision-making tools and peer based research through InformationWeek Analytics, the leading service for peer-based IT research and analysis. IT professionals turn to our experts and communities to stay informed, get advice and research technologies to make strategic business decisions.  The InformationWeek Business Technology Network is part of UBM TechWeb.

About Rackspace Hosting

Rackspace Hosting is the world’s leading specialist in the hosting and cloud computing industry. The San Antonio-based company provides Fanatical Support (r) to its customers, across a portfolio of IT services, including Managed Hosting and Cloud Computing. 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 about historical results, operational improvements 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 product and service offerings; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, and any statements of assumptions underlying any of the items mentioned. Risks, uncertainties and assumptions include the possibility that expected benefits from our operational improvements or product and service offerings may not materialize, along with other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended June 30, 2010, filed with the SEC on August 9, 2010. 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.