Rackspace Announces Full Suite of Cloud Hosting Offers

Acquisitions of Jungle Disk, and Web hosting provider, Slicehost extends reach and leadership in cloud hosting.

AUSTIN, TEXAS – Oct. 22, 2008 – Rackspace® Hosting (NYSE:RAX), the world’s leading hosting services provider, today unveiled its cloud hosting strategy which extends the company’s technology and service leadership to cloud hosting. In support of its new cloud hosting strategy, the company announced it has agreed to acquire Slicehost and Jungle Disk, and has established relationships with Limelight Networks, Inc. (NASDAQ: LLNW) and Sonian Networks to provide more robust service offerings. Today’s announcement will be made at a customer event hosted at the Austin City Limits stage which can be viewed via live video stream at www.rackspacecloudevent.com.

“Cloud computing offers tremendous benefits to our customers that complement our traditional managed hosting services,” said Lanham Napier, CEO, Rackspace Hosting. “Being a leader in hosting means being a leader in the cloud. Today, we made clear our intent to have the best suite of cloud offerings. Our new offerings are part of a strategy to bring cloud benefits to all businesses with simple, cost-effective products that everyone can use, backed by the best customer support that only Rackspace can deliver.”

Rackspace’s acquisition of two innovators in the cloud community, Slicehost and Jungle Disk, bring proven solutions to the suite including on-demand, virtualized servers and online storage software and services, respectively. Slicehost is a leader in Xen-based virtual machine hosting with more than 15,000 “slices” online today. Jungle Disk offers reliable cloud storage solutions that allow users to easily share an unlimited amount of cloud storage between multiple users through a secure, mountable network drive and automatic backup. Over time, Rackspace intends to integrate their capabilities into its complete hosting portfolio to provide business customers a suite of hosting solutions to meet all of their IT needs.

“On-demand computing is the new foundation of hosting,” said Jason Seats, founder, Slicehost. “Rackspace gives us the ability to expand the Slicehost offer and meet the needs of the corporate world whose interest in cloud technologies has only just begun. In addition, no one else shares our customer first service philosophy more than Rackspace. It is an obvious fit.”

“Rackspace is a natural fit for the next evolution of Jungle Disk,” said Dave Wright, CEO and founder, Jungle Disk. “We are creating a set of storage solutions that will help solve rapidly-growing storage problems for businesses. We believe that no one could take this solution to the business world better than Rackspace. Together we will push the cloud revolution and make simple and cost effective storage solutions available to businesses of all sizes.”

Rackspace is quickly developing one of the most comprehensive hosting solution suites ranging from dedicated managed servers and hosted email solutions to highly scalable cloud hosting and storage services based on open standards and technologies. Combined, IT departments and small businesses now have a full range of tools to power their computing needs.

Cloud Hosting Portfolio
Rackspace’s cloud strategy is supported by three core offerings, all part of Mosso, Rackspace’s Cloud Hosting Division. The company’s existing Hosting Cloud and CloudFS storage offerings have been re-branded to reflect the company’s newly integrated approach:

· Cloud Sites™ — Rackspace’s flagship cloud offering, The Hosting Cloud, is now Cloud Sites. Developed by Mosso, Rackspace’s cloud division, it offers a scalable platform for handling huge traffic spikes and a pay-as-you-grow pricing model. Cloud Sites is a heterogeneous environment, supporting both Windows and Linux.