Rackspace Lowers Pricing on its Open Cloud

SAN ANTONIO--(BUSINESS WIRE)--Rackspace Hosting (NYSE: RAX), the open cloud company, today announced that it is lowering the price for cloud bandwidth and content delivery network (CDN) services by 33 percent. The company also announced that it is implementing tiered pricing for its open cloud product portfolio, starting with Cloud Files, its object storage service. The new pricing changes will take place over the next several weeks, beginning on February 22^nd with tiered pricing for Cloud Files.

“Simple pricing is a feature of the Open Cloud. Our cloud services are easy to use, highly performant and reliable, while giving customers the choice they need to avoid lock-in.”

Rackspace’s customers deploying bandwidth-intensive workloads serving large amounts of content (which include video streaming, mobile and applications that require fast content delivery to end users) will benefit from the lower price of bandwidth, including CDN bandwidth. The price will change from $0.18 to $0.12 per GB.

In addition to the price reduction for bandwidth and CDN bandwidth, Rackspace is introducing a tiered pricing structure. The first product to feature tiered pricing is Cloud Files object storage. The volume discounts range from $0.10 per GB per month for the first 1TB, decreasing to $0.075 per GB per month and even lower for storage amounts over 1024 TB. Rackspace will roll out tiered pricing for additional products throughout 2013. For more details on the bandwidth price reduction and the tiered pricing structure, please visit: http://www.rackspace.com/blog/lower-open-cloud-pricing/.

“The Rackspace Open Cloud is built upon a simple pricing model with no hidden costs or extra charges,” said John Engates, Chief Technology Officer at Rackspace. “This simple and straightforward pricing approach is a key part of how we help customers take advantage of the real value of the Rackspace Open Cloud, particularly for the next generation of bandwidth and content-centric web applications, which must deliver quality user experiences on a mobile and global basis.”

Rackspace aims to make budgeting easier for mid-market and enterprise customers through simple pricing, avoiding charging customers for “extras” that are difficult to predict or estimate. For example, Rackspace does not charge for I/O requests on its Cloud Block Storage product or for API requests on its Cloud Files object storage product.

“Our focus continues to be on delivering cloud services that are differentiated in the market through our combined emphasis on being Open and Fanatical,” added Engates. “Simple pricing is a feature of the Open Cloud. Our cloud services are easy to use, highly performant and reliable, while giving customers the choice they need to avoid lock-in.”

For additional information on the Rackspace Open Cloud, visit: www.rackspace.com/cloud.

About Rackspace

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 205,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a broad portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. Rackspace has been recognized by Bloomberg BusinessWeek as a Top 100 Performing Technology Company, is featured on Fortune’s list of 100 Best Companies to Work For and is included on the Dow Jones Sustainability Index. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.” Rackspace is headquartered in San Antonio with offices and data centers around the world. 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, performance or market acceptance associated with the Rackspace Open Cloud products and services or pricing strategies; anticipated operational and financial benefits from the Rackspace Private Cloud products and services or pricing strategies; 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 the Rackspace Open Cloud products and services or pricing strategies may not materialize because these products and services are not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the products and services cost effectively, differentiate the products and services from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the products and services, (iii) changes in technology which adversely affect the benefits of the products and services, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the products and services, and (vi) other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2012, filed with the SEC on November 7, 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.