2011q1 Cloud Vendor Perspective John en Gates Rackspace

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Presented by:

John EngatesCTO, Rackspace

Date: March 24, 2011

Cloud Computing:

A Vendor Perspective


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Safe Harbor Statement This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If

the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ

materially from those expressed or implied by such forward-looking statements. All statements other than

statements of historical fact could be deemed forward-looking, including, but not limited to, any projections

of financial information; any statements about historical results that may suggest trends for our business;

any statements of the plans, strategies, and objectives of management for future operations; any statements

of expectation or belief regarding future events, potential markets or market size; technology developments;

and any statements of assumptions underlying any of the items mentioned.

These statements are based on estimates and information available to us at the time of this presentation and

are not guarantees of future performance. Actual results could differ materially from our current expectations

as a result of many factors, including but not limited to: the unpredictable nature of our rapidly evolving

market and quarterly fluctuations in our business; the effects of competition; and any adverse changes in our

indirect channel relationships. These and other risks and uncertainties associated with our business are

described in our quarterly and annual reports filed with the Securities and Exchange Commission at

www.edgar.gov. We assume no obligation and do not intend to update these forward-looking statements.

Trademarks and Service Marks Rackspace, Fanatical Support, Racker, RackConnect, Cloudkick are service marks or registered

service marks of Rackspace US, Inc. in the United States and/or other countries. OpenStack andOpenStack logo design are trademarks of OpenStack, LLC. Other trademarks and tradenames appearing in

this presentation are used to refer to either the entities claiming the marks and names or their products, and

are the property of their respective holders. We do not intend our use or display of other companies

tradenames, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us

by, these other companies.
http://www.edgar.gov/http://www.edgar.gov/http://www.edgar.gov/


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3,000 employees, or Rackers

100,000+ customers and growing

Listed NYSE 2008 (RAX)

2009 Hosting Revenue

ABOUT ME

[email protected]:(210)312-4197Twitter:@jengateswww.rac

kspace.com

Chief Technology Officer

Joined Rackspace in August 2000From San Antonio, TX


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ENTERPRISE CLOUD SOLUTIONS | PAGE 4

A recognized leader by Gartner

2009 Hosting Revenue

ONERACKSPACE

130,000CUSTOMERS66,000 SERVERS3,200 RACKERS

9 DATA CENTERS3CONTINENTS$860 mnREVENUE

40% FORTUNE500


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RACKSPACE WHAT WE DO

MANAGED HOSTING

CLOUD HOSTING

EMAIL & APPS


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THE RACKSPACE CLOUD PRODUCT SUITE

Cloud FilesCloud FilesUnlimited, on-demand storage

Cloud Load BalancersLoad balance multiple Cloud Servers

for optimal resource utilization

Private CloudA managed cloud environment built on

hardware that is dedicated to you

Cloud ServersCloud ServersLinux or Windows Servers in minutes

RackConnectSeamlessly connect cloud and

dedicated infrastructure

Cloud BuildersBuild an OpenStack cloud in your

datacenter with help from our experts


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QUICK DEMO


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EVERYONE IS GOING TO THE CLOUD

Maximize revenue

Reduce cost

Expedite time to market Focus resources

Do more projects

Cost

Speed

Cloud Adoption


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THE CLOUD IN THE ENTERPRISE

If youre not integratingcloud computing into yourmission critical IT strategy,youll soon be lapped by

your competitors.

58%say cloud computingwill cause a radical

Shift in IT.

- CIO Magazine (from IDC report) Oct 2008

By 201220% of businesses

will own no IT assets.

- Gartner Key Predictions, Jan. 2010z

47%say they are alreadyusing it or actively

researching it.

- CIO Magazine (From IDC Report) Oct. 2008


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Multi-tenant

Consumed over the web

Infinite Scale

Utility Billing

Zero Capex

PUBLIC CLOUD


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Single-tenant

Consumed over private

network

Limited Scale

Capital expenditure

PRIVATE CLOUD


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Private Public Controlover security,

data, availability

Investment protection

Legacy integration

Minimal capitalrequirements, no upfrontrisk/commitments

Agility

Efficiencies of vast scale

CapEx still required

Limited Agility

Less control over Security

Regulatory concerns

CloudCloud

PUBLIC VS PRIVATE THE TRADEOFFS


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THE SOLUTION: HYBRID

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Hybrid Cloud

Combining the best of Public

and Private Clouds for

maximum agility, elasticity and

security, at minimum cost

Public CloudAccessible over the internet

for general consumption

- Multi-tenant the ability toprocess the needs of multipleusers with shared resources in a

dynamic and transparent fashion- Elastic and Scalable

resources can expand andcontract as needed

- Metered/Rented some mannerof pay for only what you use

- Self-Provisioned self check-in at least to some degree

- Internet based accessibleusing internet technology, usuallyover the public Internet

Private CloudOperated solely for an

organization, typicallywithin the firewall:

- Low cost of ownership

- Great control over security,

compliance, and QoS

- Easier integration

- Support existing

applications

HYBRID CLOUD BENEFITS


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CLOUD STRATEGY

If you want to use the Cloud orbuild a Cloud, who do you turn to?


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PUBLIC CLOUD: LOCK IN PREVAILS

Proprietary, closed publicClouds are a problem.


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PRIVATE CLOUD: A BIGGER PROBLEM

Tightlyintegrated

vertical stacks

for privateClouds can

limit flexibility

and choice.

Youre right back where you started.

Very expensive.

This is business as usual!


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OPEN SOURCE

On the other

hand

Remember how

this guy disrupted

enterprise IT?

Linux


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The Internet was built on Open Source.

What will the Cloud be built on?

THE WEB ERA: BUILT ON OPEN SOURCE


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OPEN SOURCE OS

The Cloud Will Have an

Open SourceOperating System.


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INTRODUCING OPENSTACK


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BUILDING A CLOUD

Our Goal:Turn Commodity Hardware into a Cloud.


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OPENSTACK AT A GLANCE

Open Source Cloud computing will meet the needs of public and

private Cloud providers by being simple and massively scalable.

Software to make a cloud anywhere

An ecosystem devoted to innovation

Flexibility in deployment/features

Standards for broad deploymentNo fear of lock-in


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OPENSTACK PROJECTS

OpenStack ComputeSoftware to provision virtual machines on commodity

hardware at massive scale

OpenStack Object StorageSoftware to reliably store billions of objects distributedacross commodity hardware

OpenStack GlanceServices for discovering, registering, and retrieving virtual

machine images

Creating Open Source software

to build public and private Clouds


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THE CLOUD IS ECOSYSTEM DRIVEN


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A PATTERN OF ECOSYSTEM DRIVEN MARKETS

VISIONARY MASS CONSUMABLE OPEN


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OPENSTACK ECOSYSTEM GROWING RAPIDLY


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RACKSPACE VISION: OPEN FEDERATED CLOUD


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We appreciate you taking time out of

your busy day forRackspace.

THANK YOU

2011q1 Cloud Vendor Perspective John en Gates Rackspace

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