Rackspace Survey Uncovers Massive Disconnect Between CMOs and CIOs in E-Commerce and Digital Marketing

Survey Reveals 92 Percent of Marketing Leaders and 75 Percent of IT Leaders Are Looking for More Integration Between These Two Teams

San Antonio - Nov. 2, 2015 - Only 14 percent of surveyed marketing leaders and 17 percent of surveyed IT leaders feel that they are currently very integrated, according to a new survey released today by Rackspace®(NYSE: RAX), the #1 managed cloud company. The U.S. study, Marketing and IT: Overcoming a Cats-and-Dogs History to Create a Seamless Customer Experience, sheds light on the differences in IT and marketing teams' priorities, the way they struggle to work together, how they perceive one another, and what is needed to improve their working relationship in today's world of digital marketing. The findings underscore the need for IT and marketing to find common ground as they are increasingly tasked with working together on digital marketing and e-commerce strategy and execution. There is also a growing demand for third party experts to get them there.

According to the survey, the challenges start right from the beginning with different personalities and outlooks on either side. Marketers see themselves as cooperative and extroverted, while they see IT as nerdy and data-driven. However, IT team members see themselves as realistic, but still cooperative. The upshot is, both sides feel misunderstood. Of those surveyed, only 19 percent of IT leaders think marketing understands what they do, while fewer than one in 10 marketing leaders think IT leaders understand what they do.

"IT and marketing used to function as two completely separate entities, free to operate as they saw fit, with their idiosyncrasies and stereotypes," said Kyle Metcalf, General Manager of Rackspace Digital. "But the rapid growth of digital marketing and e-commerce pushed these two groups together. And if these groups are at odds, it can cause the customer experience to slip. Our survey unveils some of the reasons behind the disconnect and where the groups have opportunities to pull together."

The No. 1 frustration on both sides is the disagreement over speed. The top frustration among surveyed marketing leaders (46 percent) is that IT does not work quickly enough, and the No. 1 frustration among surveyed IT leaders (47 percent) is that marketing wants IT to move too quickly, potentially compromising quality and security.

Though marketing and IT continue to see the world differently -- marketing leaders see strategy as the key success driver, while IT leaders think success depends on a skilled workforce -- they do agree on one thing. Both sides see that they are currently not integrated or communicating well, and they agree that they want to be more integrated. Ninety-two percent of surveyed marketing leaders and 75 percent of surveyed IT leaders are looking for more integration between these two critical teams.

Marketing and IT leaders are also aligned on a path forward -- they see a true partnership with common goals, common language and frequent communication as keys to a successful, integrated relationship. Further, of respondents surveyed, 70 percent or more of both groups believe a neutral third party can make that collaboration easier. A full-service managed cloud provider [like Rackspace] can power the high-traffic websites and large ecommerce stores that both IT and marketing want to create.

To view the full report, visit go.rackspace.com/CMO_CIO_Report. Additional information and infographic can also be found here.

About the survey

The data points referenced above come from a study commissioned by Rackspace, produced by research firm Edelman Berland and conducted as an online survey from May to June 2015 among a nationally representative sample of 201 U.S. marketing and IT senior leaders at companies that spend $5 million or more per year on digital marketing. The margin of error is 9.8 percent.

About Rackspace

Rackspace (NYSE: RAX), the #1 managed cloud company, helps businesses tap the power of cloud computing without the challenge and expense of managing complex IT infrastructure and application platforms on their own. Rackspace engineers deliver specialized expertise on top of leading technologies developed by AWS, Microsoft, OpenStack®, VMware and others, through a results-obsessed service known as Fanatical Support®. The company has more than 300,000 customers worldwide, including two-thirds of the FORTUNE 100. Rackspace was named a leader in the 2015 Gartner Magic Quadrant for Cloud-Enabled Managed Hosting, and has been honored as one of Fortune's Best Companies to Work For in six of the past eight years. Learn more at 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 about Rackspace survey results that may suggest trends for the industry; any statements relating to expected or predicted behaviors of consumers and the impact of cloud computing; any statements of expectation or belief directly relating to Rackspace business derived from the survey results; any statements of expectation or belief regarding future events, and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include a substantial margin of error in the survey results, inconsistencies in respondent's understanding and Rackspace's analysis of survey questions and results, the possibility that expected benefits from any shift in consumer behavior may not materialize as expected; the achievement of expected operational results from any shift in consumer behavior; 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 June 30, 2015 filed with the SEC on August 10, 2015. 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