Rackspace Expands OpenStack Leadership with Next Generation Bare Metal Servers

March 10, 2016

New Version of OnMetal Unlocks Greater Performance for Demanding Workloads like Cassandra, Docker and Spark

San Antonio – March 10, 2016 – Rackspace® (NYSE: RAX) today announced the next generation of OnMetal™ Cloud Servers powered by OpenStack® – bare metal, single-tenant servers that are API-provisioned in two minutes, providing near-instant scalability and elasticity. This latest version of OnMetal Cloud Servers delivers innovative connectivity between public cloud and dedicated hardware and enables unprecedented hybrid cloud performance. Both Microsoft® and Linux workloads can now benefit from these next generation capabilities by capitalizing on the flexibility of public cloud with the performance and security of bare metal servers.

OnMetal Cloud Servers are an ideal solution for customers looking to run workloads such as Cassandra, Docker®, Spark and Windows that require intensive data processing, raw compute power and the ability to quickly scale and deploy. This offering gives customers bare metal speed, with the control, security and consistent performance comparable to dedicated hardware. OnMetal Cloud Servers help increase efficiencies at scale, allowing customers to reduce the cost and complexity of their IT operations by consolidating workloads from many virtual environments to a few bare metal servers.

“The demands of modern cloud architecture and workloads like Cassandra are pushing the industry to find performance anywhere it can,” said Jonathan Ellis, co-founder at DataStax. “Running core infrastructure on hardware like Rackspace's OnMetal is the closest thing we have to an assured advantage: lower latency and more requests served with no changes to the code."

Rackspace customer Brigade, a political social networking app, has significantly increased its app’s performance and reliability with OnMetal Cloud Servers. The Rackspace bare metal offering has helped Brigade avoid performance limitations common with virtualized systems and utilize the increased consistency of a single-tenant cloud environment. According to Brigade, the first generation of OnMetal improved Brigade’s query times by 36.5x, from 7.3 seconds to 0.2 seconds.

“OnMetal has played a significant role in our ability to deliver the Brigade app with optimal uptime, and to innovate and grow the application with the performance of a dedicated environment,” said John Thrall, CTO of Brigade. “We’re excited to hear that Rackspace is offering next generation OnMetal, and we look forward to seeing what additional performance gains we can achieve with the upgraded product.”

The next generation of OnMetal Cloud Servers delivers to customers the following benefits and new features:

Private and Secure Networking – Next generation of OnMetal Cloud Servers will integrate with Cloud Networks and RackConnect® (available in the second quarter of 2016) to provide enhanced levels of secure networking across all the Rackspace servers and devices within the customer’s environment.

– Next generation of OnMetal Cloud Servers will integrate with Cloud Networks and RackConnect® (available in the second quarter of 2016) to provide enhanced levels of secure networking across all the Rackspace servers and devices within the customer’s environment. Increased International Availability – Next generation OnMetal Cloud Servers are available internationally, with regional coverage across the U.S. and U.K., decreasing latency for customers around the globe.

Next generation OnMetal Cloud Servers are available internationally, with regional coverage across the U.S. and U.K., decreasing latency for customers around the globe. Improved Storage Capabilities – Next generation OnMetal Cloud Servers are faster, higher capacity and more reliable than the first generation. The bare metal servers feature improvements of 250 percent in write performance, 40 percent in read performance and include up to 800 GB of local boot drive storage capacity. Also, they feature RAID 1 mirrored storage with two hot-swappable disks to improve uptime and help to reduce the risk of lost data.

Next generation OnMetal Cloud Servers are faster, higher capacity and more reliable than the first generation. The bare metal servers feature improvements of 250 percent in write performance, 40 percent in read performance and include up to 800 GB of local boot drive storage capacity. Also, they feature RAID 1 mirrored storage with two hot-swappable disks to improve uptime and help to reduce the risk of lost data. Hardware and Software Upgrades – Next generation OnMetal Cloud Servers are built on second generation Open Compute servers, featuring the latest Intel Xeon E5-2600 v3 processors. Additionally, the next generation of OnMetal Cloud Servers offers an improved selection of guest images, with support for Windows available in the second quarter of 2016.

“Rackspace is leading the OpenStack market with unparalleled technical innovation and operational expertise. With the fastest deployment times in the industry and unmatched performance, OnMetal is the leading bare metal offering and the largest public deployment of OpenStack Ironic in the world,” said Paul Voccio, vice president, software development, at Rackspace. “With the combination of new features and performance capabilities in the next generation of OnMetal, it can be a solution for many customers seeking OpenStack as the platform to run their most demanding workloads.”

To learn more about OnMetal Cloud Servers, please visit https://www.rackspace.com/cloud/servers/onmetal and the Rackspace Blog.

About Rackspace

Rackspace (NYSE: RAX), the #1 managed cloud company, helps businesses tap the power of cloud computing without the challenge and expense of managing complex IT infrastructure and application platforms on their own. Rackspace engineers deliver specialized expertise on top of leading technologies developed by AWS, Microsoft, OpenStack, VMware and others, through a results-obsessed service known as Fanatical Support®. The company has more than 300,000 customers worldwide, including two-thirds of the FORTUNE 100. Rackspace was named a leader in the 2015 Gartner Magic Quadrant for Cloud-Enabled Managed Hosting, and has been honored as one of Fortune’s Best Companies to Work For in six of the past eight years. Learn more at www.rackspace.com.

Forward-Looking Statement

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 next generation of OnMetal Cloud Servers powered by OpenStack; anticipated operational and financial benefits from the next generation of OnMetal Cloud Servers powered by OpenStack; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions including the possibility that expected benefits from the next generation of OnMetal Cloud Servers powered by OpenStack 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) and other risks that are described in Rackspace Hosting’s Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on February 26, 2016. 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.

Media Contact:

Christina Weaver

210-312-4593

Christina.weaver@rackspace.com