Rackspace Announces OnMetal Cloud Servers General Availability and Pricing

Rackspace (NYSE: RAX), the #1 managed cloud company, today announced the general
availability and pricing of OnMetal™ Cloud Servers -- an API-driven,
single-tenant Infrastructure-as-a-Service offering. The product is designed for
customers with rapidly growing infrastructure footprints who seek the agility
and elasticity of cloud along with the simplicity and cost-efficiency of
colocation.


OnMetal Cloud Servers are built with an Open Compute design with no moving parts
and provide enhanced reliability for large-scale applications. In addition,
these servers are optimized for workloads at scale such as databases,
low-latency caching and handling a large number of web requests. 


"OnMetal Cloud Servers are an essential piece of our managed cloud portfolio.
They provide a significant performance advantage over virtualization-based
alternatives at a competitive price point," said Taylor Rhodes, president of
Rackspace. "These servers, combined with Fanatical Support®, provide businesses
with a faster, more nimble solution that delivers better overall value with
higher performance."


Product Highlights



--  OnMetal Compute - Features 10 cores and 32GB RAM. This flavor can power
    large-scale web servers, application servers, queue processors and load
    balancers. In recent SysBench benchmark testing, OnMetal Compute was
    approximately 14 percent faster than the tested virtualized counterpart.
    The OnMetal Compute flavor also performed nearly twice as fast as its
    tested virtualized counterpart in UnixBench testing. In addition,
    OnMetal Compute offers the highest number of cores per dollar versus
    comparable virtualized products. 





--  OnMetal Memory - Features 12 cores and 512GB RAM that can power caches,
    search indexes and in-memory analytics. This flavor is optimized for the
    most GB of RAM per dollar versus other comparable solutions. 





--  OnMetal I/O - Features 20 cores, 128GB RAM, 3.2TB PCIe flash drive,
    which can power large NoSQL data stores, traditional SQL databases and
    Online Transaction Processing (OLTP) applications. This flavor maximizes
    the number of database transactions per dollar. PostgreSQL benchmark
    (pgbench) showed nearly a 2x increase in transactions per second
    compared to the closest Rackspace comparable virtualized offering
    (Performance 2-120GB). 



For full results of the benchmark tests referenced above, please see Rackspace's
latest OnMetal blog post.  


Pricing Structure
Customers are billed by the minute and the prices below reflect the cost for an
average month. OnMetal Cloud Servers are offered with Rackspace's two new
Managed Cloud service levels: Managed Infrastructure and Managed Operations.
Customers will automatically receive volume discounts if their total cloud
compute usage exceeds $5,000 per month.




                                                                            
          ------------------------------------------------------------------
                                Monthly Pricing per Server                  
          ------------------------------------------------------------------
                Managed Infrastructure             Managed Operations       
                                                                            
                Raw                              Raw                        
          Infrastructure Service    Total  Infrastructure Service    Total  
  Flavor      Charge     Charge*   Charge      Charge     Charge*   Charge  
----------------------------------------------------------------------------
                                                                            
OnMetal                                                                     
 Compute       $500        $50      $550        $500        $200     $700   
                                                                            
OnMetal                                                                     
 Memory       $1,600       $50     $1,650      $1,600       $200    $1,800  
                                                                            
OnMetal                                                                     
 I/O          $1,750       $50     $1,800      $1,750       $200    $1,950  
          ------------------------------------------------------------------
                                            *Minimum service charge applies 



"Rackspace has a clear edge in delivering both managed OpenStack powered private
clouds and OpenStack-based public clouds. Using that edge to bridge the gap
between dedicated servers and IaaS with this OnMetal offering will expand the
range of choices for Rackspace customers," said Carl Brooks, research analyst at
the 451.


OnMetal Cloud Servers are currently available in the Rackspace Northern Virginia
data center and will become available at other North American data centers later
this year. The servers will be available in Rackspace's International regions in
2015. 


To learn more about OnMetal Cloud Servers and pricing, please visit
http://www.rackspace.com/cloud/servers/onmetal/.


About Rackspace
Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise
and Fanatical Support® allow companies to tap the power of the cloud without
the pain of hiring experts in dozens of complex technologies. Rackspace is also
the leader in hybrid cloud, giving each customer the best fit for its unique
needs -- whether on single- or multi-tenant servers, or a combination of those
platforms. Rackspace is the founder of OpenStack®, the open-source operating
system for the cloud. Based in San Antonio, Rackspace serves more than 200,000
business customers from data centers on four continents. It ranks #29 on
Fortune's list of 100 Best Companies to Work For. 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 facts are
statements that could be deemed forward-looking statements, including any
statements concerning expected development, performance or market acceptance
associated with OnMetal Cloud Servers; anticipated operational and financial
benefits from OnMetal Cloud Servers; any statements of expectation or belief
directly relating to Rackspace business derived from the benchmark results; any
statements of expectation or belief; and any statements of assumptions
underlying any of the foregoing. Risks, uncertainties and assumptions include
the possibility that expected benefits from OnMetal Cloud Servers may not
materialize because this product is not generally accepted in the marketplace,
which could occur due to certain factors including (i) a failure to market the
product cost effectively, differentiate the product from competitive products or
communicate differentiations effectively, (ii) the reliability, quality or
compatibility associated with the product, (iii) changes in technology which
adversely affect the product's benefit, (iv) slowdowns in the general economy or
technology industry that impact consumer spending habits, (v) internal strategy
decisions that impact the product; and (vi) other risks that are described in
Rackspace Hosting's Form 10-Q for the year ended March 31, 2014, filed with the
SEC on May 12, 2014. 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.



FOR FURTHER INFORMATION PLEASE CONTACT: 

Rackspace Media Contact:
Brandon Brunson
210-312-1357
brandon.brunson@rackspace.com
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