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Rackspace Managed Hosting’s Graham Weston on Milestones and Red Herring’s Top 100 Companies Most Likely to Change the World.

CWH: "What’s the big deal about Managed Hosting?"
Graham Weston: "As Web sites have become more complex and as the amount of e-commerce on the Internet has grown, maintaining the Internet infrastructure behind Web servers has become increasingly important. Businesses have realized that neither colocation nor virtual Web hosting provide the level of service necessary in today's Internet economy.

Rackspace Managed Hosting has filled the void so that businesses can concentrate on the applications that run their business while we focus on ensuring maximum uptime, security, performance and maintenance for those applications."

CWH: "How has Rackspace become a leader in Managed Hosting? "
Graham Weston: "We attribute our success and profitability to one thing - our focus on unparalleled customer service, which we have proudly dubbed Fanatical Support™. Rackspace offers managed Web servers based on the Linux, Solaris, BSD, and Windows 2000 platforms. Because we focus solely on managed servers, we have been able to develop not only deep technical expertise in all aspects of monitoring and maintaining a server, but also a number of tools and support documentation to troubleshoot any problems our customers may come across.

Our world-class data facilities, multi-homed network, and Fanatical Support™ have earned us the reputation as the premiere provider of managed hosting solutions to customers around the world. The Rackspace network is home to all types of Web sites such as Ironman Triathlon, Blind Date, and Columbia House. Rackspace also hosts promotional Web sites for Nintendo UK and Microsoft."

CWH: "Can you give us an idea of your financial stability in today’s market? "
Graham Weston: "Rackspace has been profitable since February 2001. In spite of the tremendous upheaval in the hosting industry last year, Rackspace more than doubled its revenue and remained profitable. Our financial track record has earned us a reputation as the pioneers of profitable hosting. We continue to grow our customer base by focusing on what we know how to do best-managed hosting services with fanatical support.

There has been a tremendous shakeout in our space. With a significant number of bankruptcies in this market and a few other providers still struggling to execute, Rackspace continues to experience rapid growth. We are now one of the largest managed hosting companies in the world with more than 3700 customers in 83 different countries and over 5500 servers under management."

CWH: "Tell us about the milestones Rackspace has recently achieved."
Graham Weston: "March 2002 marked two major milestones for the company: one year of profitability - a major achievement in the hosting industry - and a year of continuous network uptime for its customers. Profitability aside, Rackspace's 100 percent network uptime for its customers really sets the company apart. Our data centers, in Texas and London, are designed to support some of the world's most complex Web sites and server configurations. They are equipped with the very latest in routing technology and monitored and maintained to the highest standards by certified network engineers. Additionally, we have agreements with eight major bandwidth providers to ensure that its robust, high-availability network is always up and running - as it has been for over a year now."

CWH: "What does it mean for Rackspace to be named to the Red Herring 100?"
Graham Weston: "Red Herring is widely recognized as a leading business technology and innovation publication, and the Red Herring 100 has become the most respected list of its kind. Our inclusion as one of the top 50 private companies this year is not only an honor, but it reinforces Rackspace position as a leader in the hosting industry. At a time when others players are struggling to execute after the shakeout in our space, our focus on managed hosting with unparalleled customer support has been the key factor to our success.

The Red Herring 100 recognizes the top 50 private and 50 public companies whose services, business models and products define business innovation and entrepreneurial capitalism. All of us at Rackspace are very proud to have been named as one of the top 50 private companies.

The Red Herring 100, featured in the June 2002 issue of Red Herring magazine and on Red Herring Online (, includes a profile of Rackspace, highlighting its market, strategy, finances and management.

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