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Rackspace Hosting Inks Managed and Cloud Hosting Strategic Distribution Agreement with Ingram Micro

SAN ANTONIO – June 7, 2010 – Rackspace® Hosting (NYSE: RAX), the world’s leader in the hosting and cloud computing industry, today announced that it has signed a distribution agreement with Ingram Micro Inc. (NYSE: IM) to bring managed hosting and cloud computing offerings to the distributor’s growing base of North American channel partners through the new Seismic Cloud Conduit Program.  Rackspace is one of the first hosting providers to offer its services through a traditional distribution model allowing VARs, resellers and channel partners to embrace the shift in IT to cloud computing and realize new recurring revenue streams.

Seismic Cloud Conduit is a new services program designed to enable Ingram Micro’s channel partners to take advantage of and maximize the business opportunities offered by cloud computing.

“As the world’s leading technology distributor, it was a natural progression for us to work with Rackspace, a world leader in the hosting and cloud computing industry, and bring to market a best-in-class solution for cloud computing,” said Justin Crotty, vice president, services, Ingram Micro North America.  “By teaming with Rackspace, we are enabling our channel partners to take advantage of the new business opportunities cloud computing brings to the table and raise the bar when it comes to delivering affordable managed IT services.”

Under the terms of the agreement, Ingram Micro’s considerable base of Managed Services Providers (MSPs) and Value Added Resellers (VARs) can now offer Rackspace’s portfolio of hosting options to provide their customers the right mix of managed hosting and cloud hosting solutions. Announced at the Ingram Micro Cloud Summit taking place today in Dallas, Texas, the news will also be featured during a keynote presentation from Lew Moorman, President, Cloud and Chief Strategy Officer for Rackspace Hosting.

“We have made significant investments into our channel program, beginning with new partner and reseller programs announced in 2009, and now working with Ingram Micro, we are able to further expand our reach and scale to support Ingram Micro’s broad range of channel partners,” said Robert Fuller, Vice President of Worldwide Channel Sales, Rackspace.  “This relationship opens up a new world of opportunity for MSPs and VARs who have been challenged with how to deliver cloud services and extend the benefits of cloud computing to their customers. We are very pleased to team with Ingram Micro, a world-class distribution organization, to offer the benefits of cloud and managed services to a broad range of partners and enterprises.”

Rackspace has a successful channel program with hundreds of partners and resellers and a growing enterprise VAR program that helps established brands enter into the cloud computing space.  Through the new Ingram Micro relationship and Rackspace’s proven track record supporting enterprises, BEAR Data Systems, an IT solutions and services provider that helps clients plan, build, optimize and support mission-critical IT infrastructure, is now signed up to resell the Rackspace portfolio.

“The Ingram Micro Rackspace distribution deal is great news for the partner community,” said Don James, CEO, BEAR Data Systems. “Our mission is to make IT easier for our clients and with this deal, we now have a high quality, hassle-free way to deliver cloud services and benefits to them. Rackspace’s commitment to Fanatical Support and the proven solutions offered by Ingram Micro can help us deliver best-in-class services to enterprises: service, reliability and a commitment to quality.  We are very pleased with this new relationship because it opens up new business opportunities for BEAR Data and enables us to offer new services to our customers.”

As part of the agreement, Rackspace will provide dedicated resources and training to simplify the sales and operations process. Rackspace will also be participating in a rollout across segments of Ingram Micro’s channel partner community that will include seminars, training events and joint work on order process management.

In addition to the reseller relationship, Ingram Micro has also announced a new industry consortium called the Cloud Conduit Advisory Council of which Rackspace is a founding member.  As part of the council, Rackspace will help provide industry best practices for successful services execution and stimulate growth of the overall cloud services market, among other things.

More information on the program and to start reselling Rackspace products today visit: http://www.ingrammicro.com/seismic.

About Rackspace Hosting

Rackspace Hosting is the world’s leader in the hosting and cloud computing industry. The San Antonio-based company provides Fanatical Support® 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 concerning expected development and returns associated with additional business associated with the agreement between Rackspace and Ingram Micro; any anticipated operational and financial benefits; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include (i) Ingram Micro’s failure to refer business to Rackspace, (ii) the failure of Ingram Micro’s operations, (iii) changes in technology or the competitive environment which are unfavorable to Ingram Micro’s products or services , (iv) slowdowns in the general economy or technology industry that impacts consumer spending habits, and (v) other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended March 31, 2010, filed with the SEC on  May 6, 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.

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