[January 16, 2013]

Rackspace Announces Open Source Datacenter Strategy

Rackspace® Hosting (NYSE: RAX) COO Mark Roenigk today unveiled plans by the San Antonio-based open cloud company to support and partner with Open Compute suppliers that provide open source datacenter solutions.

Rackspace launched the industry's first OpenStack powered cloud platform of compute, storage and networking in 2012.

"Rackspace will support those companies and organizations that share our vision for an open cloud," said Roenigk. "Rackspace is committed to supporting like-minded companies who are dedicated to open standards and breaking down the engineering barriers that lock users into proprietary technologies."

Rackspace COO and Open Compute Foundation board member Roenigk delivered his remarks today during his keynote address at the Open Compute Summit in Santa Clara, CA (News - Alert).

Rackspace has contributed a server design to the Open Compute Project community and expects to announce plans later this year to purchase servers from Open Compute Project suppliers for one of the company's new data centers.

"Open Compute Project members like Rackspace are breaking down the barriers for open cloud adoption," said Frank Frankovsky, Chairman of the Open Compute Foundation Chairman and Vice President of Hardware Design & Supply Chain at Facebook (News - Alert). "Today's announcement by Rackspace shows the progress that the Open Compute Project is making in advancing open source infrastructure technologies."

Rackspace is a founding member of the Open Compute Project and has worked closely with technology leaders who share a common vision for the future around open standards. As a founder of OpenStack, Rackspace's work with the Open Compute Project aligns with thi vision.

The Open Compute Project is a rapidly growing community of engineers around the world whose mission is to design and enable the use of the most efficient server, storage and data center hardware designs for scalable computing. Open Compute members believe that openly sharing ideas, specifications and other intellectual property is the key to maximizing innovation and reducing operational complexity in the scalable computing space.

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 197,000 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 (News - Alert) 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.

Rackspace® is a registered trademark of Rackspace Hosting (News - Alert) Inc. OpenStack® is a registered trademark of the OpenStack Foundation. Other names may be trademarks of their respective owners.

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 Open Compute project; anticipated operational and financial benefits from the Open Compute project; 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 Open Compute project, support services and training may not materialize because Open Compute 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 (News - Alert) 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.

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