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Rackspace Launches UK Startup Programme to Fuel New British Businesses

Rackspace®, the open cloud company, announces plans to launch its Rackspace Startup Programme in 2013 to provide cloud computing resources to new businesses driving growth in the UK economy. With a global track record of partnering with premiere startup accelerators and incubators in the USA and Australia, the firm now broadens its focus to include the EMEA region aiming to help power thousands of UK startups to success.

“Since launching in the US two years ago, we’ve helped over 850 startups through the programme. We’ve also worked with over 100 programme partners, including some of the top accelerators, universities, co-working spaces and VCs, and we are thrilled to launch the UK startup programme,” said Taylor Rhodes, Managing Director, International at Rackspace.

Given the cloud model’s inherent flexibility and elasticity, the fact that it requires minimal capital expenditure up front, and its unmatched ability to scale, it’s an essential differentiator for many fast growth businesses. In 2009, nearly 250,000 VAT registered businesses started in the UK*. This highlights the vast number of startups that could potentially benefit from cloud services, if they aren’t already.

Starting as a ten man entrepreneurial venture itself back in 1998, Rackspace recognises the need to provide fledgling businesses harbouring great potential the enabling technologies for growth and commercial success. The Rackspace Startup Programme therefore exists to provide low cost cloud hosting and support services to startup incubators who have identified cloud computing as a more efficient route to IT service delivery.

As a company that likes to refer to information technology as the “fifth business utility”, Rackspace views cloud computing as a means of democratising access to powerful IT resources at every tier of the business spectrum. As such, the Rackspace Startup Programme has been engineered from the outset to give incubators an unrivalled opportunity to drive startup firms towards development, expansion and commercial success.

“Cloud computing services are built around the principles of not only flexibility and scalability, but automation and self-service too as we serve customers’ needs from our local datacentres with additional service layers all backed up by our world-renowned Fanatical Support,” said Rhodes. “Bringing the power of our continuously available cloud services to the dynamic world of startup business is, to be quite honest, really exciting. I can’t wait to see what happens next.”

Rackspace unveiled its Startup Programme at a ‘Boost Your Start-Up’ networking event held in the heart of London’s Tech City on 20th November 2012. The event featured a panel discussion with some of the most prominent thought leaders in this space, moderated by Robert Scoble, the world’s pre-eminent blogger and evangelist on technology and start-ups. Moving forwards, Rackspace expects to work with high profile accelerators including DreamStake and Springboard, to ensure that businesses across the UK have access to its Startup Programme.

“With a multiplicity of extremely sensitive and highly fluid business factors to juggle, startups need an IT backbone built around maximum levels of elasticity, control and automation. We welcome Rackspace’s commitment to providing this through their cloud offering. The scalability in a pay-as-you-go model is essential for fast-growing businesses and will be a key business enabler for startups now and in the future,” said Sean Kane, Co-Founder, Springboard.

Rackspace is also offering one start-up team the chance to win a trip to San Antonio, Texas, plus a 1-on-1 mentoring session with founder and Chairman, Graham Weston, while they’re there. Entrants must submit a pitch video for a start-up idea centred around cloud computing by December 14th for a chance to win. The winners will also receive £3,000 in Rackspace Cloud Hosting.

Notes to editors

*http://www.startups.co.uk/business-startup-trends.html

About Rackspace

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 197,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a broad portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. The company offers choice, flexibility and freedom from vendor lock in. Rackspace has been recognised by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and is featured on Sunday Times list of 100 Best Companies to Work For. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.” Rackspace EMEA headquarters are in London with offices and data centers around the world. 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 any statements concerning expected development of the Rackspace Startup Programme and residual benefits from the programme to Rackspace; anticipated operational and financial benefits from Rackspace Startup Programme; 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 Rackspace Startup Programme may not materialize because the programme is not generally accepted in the marketplace and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2012, filed with the SEC on November 7, 2012. 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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