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Rackspace Acquires Cloudkick to Provide Powerful Server Management Tools for the Cloud Computing Era

Cloudkick’s world class tools will combine with Rackspace’s Fanatical Support to further the benefits of cloud computing


SAN ANTONIO – December 16, 2010– Rackspace® Hosting, the world’s leading specialist in the hosting and cloud computing industry, today announced its acquisition of Cloudkick™, the creator of award-winning web applications for easy and efficient cloud-server management.  Cloudkick offers what amounts to a cockpit for navigating complex cloud environments, with all the information and controls in one elegant, convenient panel to help developers and system administrators deploy and manage their cloud environments.

“Until now, the cloud has been about automating hardware and making it more agile and efficient,” says Lew Moorman, chief strategy officer of Rackspace.  “But as cloud computing has made it easier to launch servers, companies launch a lot more of them, and use many of them inefficiently — and even lose track of some.  Cloudkick brings order to that chaos and sprawl.  It takes cloud computing to a new level: into automation of the work of system administrators.  In addition to providing robust cloud health information, Cloudkick enables automation around deployment and scaling.  It makes cloud computing more powerful, with less expense.”

A two-year-old startup initially funded by Y Combinator and based in San Francisco, Cloudkick serves more than 1,500 businesses from Fortune 500 enterprises to nimble startups — and has seen more than 1 million servers pass through its tools.  Cloudkick helps its customers manage and monitor their servers across multiple providers from a single dashboard – no matter how large or complex the deployment. That dashboard lets customers manage a hybrid infrastructure, across both multi-tenant virtualized servers and dedicated hardware.

After pioneering managed hosting a decade ago, Rackspace has in recent years extended its leadership to cloud computing and hybrid hosting.  Earlier this week, it defined a new category of hosting, managed cloud, which offers a new level of Fanatical Support® to business users of cloud computing. Rackspace expects its acquisition of Cloudkick  to enable it to deliver even better support through superior management tools that will be available directly to customers and also to the Rackers who serve them. Rackspace will also broaden its presence in the San Francisco Bay Area, making Cloudkick’s headquarters the latest outpost for delivering Fanatical Support and innovation in cloud computing.

“Bringing Cloudkick into the Rackspace fold, and integrating its expertise into our own, is a bold step toward ensuring Rackspace’s position as the leading global cloud provider for years to come,” says Rackspace strategy chief Moorman.  “As we continue to deliver Fanatical Support in all that we do, Rackspace now has expanded its team and offerings to make managing IT infrastructure more seamless across various platforms.”

“We built Cloudkick to make the lives of system administrators easier,” said Alex Polvi, founder of Cloudkick.  “With the support of Rackspace we look forward to fulfilling our vision, while getting our tools directly into the hands of customers as they adopt cloud computing.”

In the two years since its launch, Cloudkick has grown rapidly and is working with well-known companies such as Mozilla and National Instruments. Cloudkick has been an active member of the OpenStack™ community, an open-source cloud project founded by Rackspace, and will continue to serve as an excellent option to monitor and manage OpenStack clouds.

“Y Combinator has funded a lot of startups, but it was clear from early on that Cloudkick was going to be one of the big winners. They’re a layer of the cloud computing infrastructure that practically everyone needs,” said Paul Graham, partner of Y Combinator. “Rackspace plus Cloudkick should be a good match, thanks to Cloudkick’s service focus and dedication to the open-source community, and Rackspace’s market reach.”

About Rackspace Hosting

Rackspace Hosting is the world’s leading specialist in hosting and cloud computing, and the founder of OpenStack, an open source cloud platform.  The San Antonio-based company provides Fanatical Support® to its customers, across a portfolio of IT services, including Managed Hosting and Cloud Computing. For more information,

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 acquired products and services of Cloudkick ; anticipated operational and financial benefits from the acquired products and services of Cloudkick, including the implementation and use of such products or services into Rackspace product and service offerings; 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 Cloud Servers for Windows 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 acquired products and services  cost effectively, differentiate the products and services from competitive products and services or communicate the differentiations effectively, (ii) the reliability, quality or compatibility associated with the acquired products and services, (iii) our inability to develop the acquired technology into our products or services effectively, (iv) changes in technology which adversely affect the product’s benefit, (v) slowdowns in the general economy or technology industry that impact consumer spending habits, (vi) internal strategy decisions that impact the product, and (vii) other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on  November 9, 2010. 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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The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

For more information, please contact:

Rackspace Hosting

Melissa Smolensky


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