Rackspace Launches Cloud Infrastructure in Europe

UK Pay-As-You-Go Cloud Provides IT Scalability & 24x7 Support

LONDON--()--Rackspace® Hosting (NYSE:RAX), the world leader in the hosting and cloud computing industry, today announced the launch of its cloud infrastructure to provide customers with a European based infrastructure for their cloud-based data footprint.

“Our US-based Rackspace cloud has already been hugely successful, with over 100,000 customers globally now taking advantage of our hosted cloud services,” said Lanham Napier, President and CEO, Rackspace. “Due to storage regulations set out under European law, many UK companies are restricted from using cloud. Our UK offering allows companies to avoid offshore data issues and weighty upfront capital investments which helps them become more strategically agile from a business perspective. We’re delighted to launch our UK cloud today and we already have over 500 customers in beta.”

The new UK cloud offerings include Rackspace Cloud Files, running on OpenStack™ Object Storage, and Cloud Servers, based on the Xen hypervisor. The new cloud platform joins the dedicated hosting platform already offered in EMEA.

Rackspace Cloud Files provides instantly scalable cloud-based storage, which is ideal for electronically storing items like backups, video files, or static user content. Rackspace opened its source code for Cloud Files to the public through the OpenStack™ project, an open source cloud computing project founded by Rackspace in July 2010. The OpenStack project was initiated to drive open cloud standards, so customers would not be locked into proprietary cloud software.

Rackspace Cloud Servers provide instant computing power, allowing customers to serve applications with flexibility and efficiency. Customers are able to deploy one or even dozens of cloud servers instantly, for as long or as little as they are required. Available in Windows and a variety of Linux distributions, Cloud Servers gives users full root access and control over their servers through either the Rackspace Cloud control panel, the Application Programming Interface (API), third party tools or Rackspace’s newly acquired Cloudkick subsidiary. Rackspace has already fully integrated the Cloudkick panel into the UK cloud offering so users can manage both US and UK cloud servers from one panel.

“Some industry analysts have stated that by 2012, 20% of organisations will no longer own an in- house IT infrastructure,” continued Napier. “Cloud computing enables this evolution in a cost- effective way; if customers on the cloud no longer need resources, they stop using them and almost immediately stop paying for them. This will be critical to companies still fighting to cut costs from their budgets, and will allow them to control spending more tightly than ever before. It is as a result of direct feedback from our existing and prospective customer base in Europe that we have brought the Rackspace cloud to Europe and built it out in our UK data centre. The Rackspace European cloud brings with it reduced latency for those customers and helps eradicate concerns over currency fluctuations and European data legislation compliance.”

“Running our own servers proved inefficient and costly. With Rackspace, our resources are freed up from managing hardware and we are now better equipped to cater to spikes in demand online,” said Ivan Retzignac, Founder at MedicAnimal.com. “We are also saving in excess of £100,000 a year, which can be invested in better services and solutions for our customers.”

About Rackspace Hosting

Rackspace Hosting is the world's leading specialist in hosting and cloud computing and has been ranked in Financial Times Top 50 Great Place to Work in the United Kingdom for the past six years. Rackspace provides Fanatical Support ® to its customers, across a portfolio of IT services, including Managed Hosting and Cloud Computing. For more information, visit www.rackspace.co.uk.

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 product offerings and services, including the UK Cloud products and services; anticipated operational and financial benefits from our product offerings and services, including the UK Cloud products and services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include including the possibility that expected benefits from our product offerings and services may not materialize because our products are not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product or services cost effectively, differentiate the products and services from competitive products and services or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with our products and services, (iii) changes in technology which adversely affect the benefits of our products or services, and (iv) other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on November 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.

Contacts

Rackspace Hosting
Brooke Hamilton, +442087342574
brooke.hamilton@rackspace.co.uk
or
Christian Sharp / Alex Brooks
Rackspace@Rocketcomms.net

Sharing

Contacts

Rackspace Hosting
Brooke Hamilton, +442087342574
brooke.hamilton@rackspace.co.uk
or
Christian Sharp / Alex Brooks
Rackspace@Rocketcomms.net