Rackspace Hosting Positioned as a Leader in the Leaders Quadrant of the Magic Quadrant for Managed Hosting Providers

“Magic Quadrant” Evaluation Based on Completeness of Vision and Ability to Execute

SAN ANTONIO, TX – March 8, 2011 – Rackspace Hosting (NYSE:RAX), the service leader in cloud computing, today announced that it has been positioned by Gartner, Inc. in the Leaders quadrant of the “Magic Quadrant for Managed Hosting.”[1]

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.

“The year 2011 has been fundamental in several major Rackspace initiatives with the formation of Rackspace Cloud Builders, providing consultative work around OpenStack, and the continued success and growth of RackConnect™, Rackspace’s hybrid hosting solution. We consider our leadership position in Gartner's Magic Quadrant for Managed Hosting providers as further confirmation that Fanatical Support provides great IT outcomes for our customers,” said Lanham Napier, CEO at Rackspace.  “2012 is a critical and exciting year for us as we work to advance OpenStack and extend the quality of services we provide our customers.   We are obsessed with building a great company, and we're doing the hard work to build the service leader in cloud computing.”

Rackspace is one of the few providers in the managed hosting market to offer hybrid hosting capabilities using its solution called RackConnect™.  According to the report, “Most solutions for complex needs are hybrids, mixing different types of infrastructures to achieve cost-effectiveness, and to meet the customer's range of availability, performance, security and IT operations requirements. For instance, customers may need test and staging servers hosted on an IaaS platform, their front-end Web and application servers on utility hosting, and dedicated database servers. This has spurred providers to develop and productize hybrid hosting services that interconnect colocation, traditional hosting environments and cloud IaaS within unified networking and security contexts.”

About Rackspace
Rackspace Hosting (NYSE: RAX) is the service leader in cloud computing, and a founder of OpenStack™, an open source cloud operating system. The San Antonio-based company provides Fanatical Support® to its customers and partners, across a portfolio of IT services, including Managed Hosting and Cloud Computing. Rackspace has been recognized by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and was featured on Fortune’s list of 100 Best Companies to Work For. The company was also positioned in the Leaders Quadrant by Gartner Inc. in the “2011Magic Quadrant for Managed Hosting.” For more information, visit www.rackspace.com.

About the Magic Quadrant

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

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-K for the year ended December 31, 2011, filed with the SEC on February 17, 2012. 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.



Christina Weaver




[1] Gartner “Magic Quadrant for Managed Hosting” by Lydia Leong and Ted Chamberlin, March 5, 2012.