London, 20 February, 2012 – Rackspace® Hosting (NYSE: RAX), the service leader in cloud computing, has been selected as a vendor to the government's £60m G-Cloud framework. Rackspace can now supply Infrastructure-as-a-Service (IaaS) and higher level Platform-as-a-Service (PaaS) technologies to UK Government departments.

"Rackspace is committed to helping the government radically improve its level of IT efficiency and we are naturally very pleased to be on the government's procurement list for G-Cloud services," said Taylor Rhodes, Managing Director International at Rackspace. "We believe that cloud should be truly pay-as-you-go and now the UK government can maximise its cloud computing opportunity to the full potential."

Rackspace applauds government recognition of the cloud model's ability to disaggregate computing structures and engineer more flexibility into the public sector IT framework. The G-Cloud framework team has been clever and planned for hybrid hosting environments to be used while the platform in its entirety stabilises. Offering departments the option to use a mix of public cloud platforms and traditional dedicated hardware is probably the most prudent measure to further seed interest and confidence in hosted solutions for the longer term.

Rackspace is in the special position of being able to offer cloud services for both data processing and secure storage from its UK cloud data centre. As the government looks to address compliance and governance issues pertaining to the cloud, Rackspace also offers maximum levels of proximity with minimised latency.

ENDS

About Rackspace Hosting

Rackspace Hosting is the service leader in cloud computing, and a founder of OpenStack, the open source cloud operating system. Rackspace provides Fanatical Support^® to its customers, across a portfolio of IT services, including Managed Hosting and Cloud Computing. In 2011, Rackspace was recognised by the Sunday Times Best Places to Work and Financial Times Top 50 Great Places to Work in the United Kingdom for the seventh year in a row. The company was also positioned in the Leaders Quadrant by Gartner Inc. in the "2010 Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting."
For more information, visit www.rackspace.co.uk.

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 statements relating to the acquisition of future government contracts. Risks, uncertainties and assumptions include rapid technological change that can adversely affect the demand for Rackspace products, changes in government contracting requirements, shifts in customer demand, shifts in strategic relationships, delays in Rackspace’s ability to deliver its products and services, and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2011, filed with the SEC on November 8, 2011. 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 more information, please contact:
Rackspace Hosting
Brooke Hamilton, +442087342574
brooke.hamilton@rackspace.co.uk