Rackspace Private Cloud Leverages VMware to Extend Enterprise Computing on Demand

SAN ANTONIO--(BUSINESS WIRE)--Rackspace® Hosting (NYSE: RAX), the world’s leader in hosting, today announced its new Private Cloud offering, which allows customers to run the centrally managed VMware virtualization platform on private dedicated hardware environments. Rackspace recognizes the demand from enterprises for a more flexible and scalable hosting solution. Although multi-tenant cloud solutions are very flexible and cost-effective, they are not always right for every segment. The Rackspace Private Cloud’s single-tenant architecture offers increased control and security, while still maintaining the scalability, flexibility and resource optimization that make shared cloud offerings so compelling.

“Rackspace provides an excellent option for customers to take advantage of the cloud”

“Rackspace provides an excellent option for customers to take advantage of the cloud,” said Dan Chu, vice president, emerging products and markets, VMware. “Enterprises who purchase the Rackspace Private Cloud can count on the powerful combination of VMware’s industry-leading virtualization platform and Rackspace’s reliable hosting environment and infrastructure.”

Rackspace Private Cloud is an evolution of its popular dedicated virtual server (DVS) offering within the managed hosting business unit. In the last year, revenue from virtualization solutions has grown substantially, driven mainly by the increased flexibility, improved asset utilization and lower capital and operating costs that VMware’s virtualization provides.

“Rackspace is implementing a true hybrid hosting vision that allows customers to create a blend of the right hosting solutions — from dedicated, to multi-tenant cloud to specialized application hosting such as email — each backed by our industry leading support. The Rackspace Private Cloud is one piece of the entire hybrid vision,” said John Engates, Rackspace CTO. “Computing is changing at a rapid pace, and customers require that we stay ahead of the curve to continue providing best-in-class offers. We view the Rackspace Private Cloud as having a large impact for our enterprise customers who need the flexibility, scalability, and reliability provided by VMware’s virtualization, paired with the control and security of a dedicated environment. It is the best of both worlds for those enterprises looking to explore the benefits of external cloud solutions, without as much risk.”

Rackspace Private Cloud Configuration Chart

FUNDAMENTAL

ESSENTIAL

HIGH AVAILABILITY

Processing Power

16Ghz

35Ghz

Memory

16GB RAM

32GB RAM

SAN Storage

100GB FC SAN /

250GB SATA SAN

100GB FC SAN /

250GB SATA SAN

500GB FC SAN /

500GB SATA SAN

Bandwidth

1TB

The new Rackspace Private Cloud offering provides new pricing and configuration options that further extend the value for customers. The savings for customers can be substantial and further cost reductions can be achieved by the ability to quickly provision, deploy and take down virtualized server instances, using only what is needed. As with all Rackspace products, Private Cloud is backed-up by Rackspace’s award-winning Fanatical Support®.

About Rackspace Hosting

As the leader and specialist in hosting services, Rackspace® Hosting is changing the way businesses worldwide buy IT. Rackspace delivers computing-as-a-service, integrating the industry’s best technologies into a flexible service offering, making computing more reliable and affordable. A trusted partner to companies of all sizes, Rackspace enables IT departments to be more effective. Rackspace is distinguished by its award-winning Fanatical Support®, furthering the company’s mission to be one of the world’s greatest service companies. Rackspace is recognized as one of FORTUNE Magazine’s 100 Best companies to work for in the US, ranking number 43 on the list. Rackspace's portfolio of hosted IT services includes managed hosting (www.rackspace.com), email hosting (www.rackspace.com/email_hosting) and cloud hosting (www.rackspacecloud.com). For more information on Rackspace Hosting, please 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, performance or market acceptance associated with our private cloud offering; anticipated operational and financial benefits from private cloud offering; 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 our private cloud offering 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) and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended March 31, 2009, filed with the SEC on May 12, 2009. 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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