Rackspace Lowers Pricing on its Open Cloud

  Rackspace Lowers Pricing on its Open Cloud

 Open Cloud Leader Introduces Tiered Pricing and Reduces Bandwidth Charges by

Business Wire

SAN ANTONIO -- February 22, 2013

Rackspace Hosting (NYSE: RAX), the open cloud company, today announced that it
is lowering the price for cloud bandwidth and content delivery network (CDN)
services by 33 percent. The company also announced that it is implementing
tiered pricing for its open cloud product portfolio, starting with Cloud
Files, its object storage service. The new pricing changes will take place
over the next several weeks, beginning on February 22^nd with tiered pricing
for Cloud Files.

Rackspace’s customers deploying bandwidth-intensive workloads serving large
amounts of content (which include video streaming, mobile and applications
that require fast content delivery to end users) will benefit from the lower
price of bandwidth, including CDN bandwidth. The price will change from $0.18
to $0.12 per GB.

In addition to the price reduction for bandwidth and CDN bandwidth, Rackspace
is introducing a tiered pricing structure. The first product to feature tiered
pricing is Cloud Files object storage. The volume discounts range from $0.10
per GB per month for the first 1TB, decreasing to $0.075 per GB per month and
even lower for storage amounts over 1024 TB. Rackspace will roll out tiered
pricing for additional products throughout 2013. For more details on the
bandwidth price reduction and the tiered pricing structure, please visit:

“The Rackspace Open Cloud is built upon a simple pricing model with no hidden
costs or extra charges,” said John Engates, Chief Technology Officer at
Rackspace. “This simple and straightforward pricing approach is a key part of
how we help customers take advantage of the real value of the Rackspace Open
Cloud, particularly for the next generation of bandwidth and content-centric
web applications, which must deliver quality user experiences on a mobile and
global basis.”

Rackspace aims to make budgeting easier for mid-market and enterprise
customers through simple pricing, avoiding charging customers for “extras”
that are difficult to predict or estimate.For example, Rackspace does not
charge for I/O requests on its Cloud Block Storage product or for API requests
on its Cloud Files object storage product.

“Our focus continues to be on delivering cloud services that are
differentiated in the market through our combined emphasis on being Open and
Fanatical,” added Engates. “Simple pricing is a feature of the Open Cloud. Our
cloud services are easy to use, highly performant and reliable, while giving
customers the choice they need to avoid lock-in.”

For additional information on the Rackspace Open Cloud, visit:

About Rackspace

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open
technologies and powering more than 205,000 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. Rackspace has been recognized by Bloomberg BusinessWeek as a Top 100
Performing Technology Company, is featured on Fortune’s list of 100 Best
Companies to Work For and is included on the Dow Jones Sustainability Index.
Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011
Magic Quadrant for Managed Hosting.” Rackspace is headquartered in San Antonio
with offices and data centers around the world. 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 Rackspace Open Cloud products and services or
pricing strategies; anticipated operational and financial benefits from the
Rackspace Private Cloud products and services or pricing strategies; 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 the Rackspace Open Cloud
products and services or pricing strategies may not materialize because these
products and services are not generally accepted in the marketplace, which
could occur due to certain factors including (i) a failure to market the
products and services cost effectively, differentiate the products and
services from competitive products or communicate differentiations
effectively, (ii) the reliability, quality or compatibility associated with
the products and services, (iii) changes in technology which adversely affect
the benefits of the products and services, (iv) slowdowns in the general
economy or technology industry that impact consumer spending habits, (v)
internal strategy decisions that impact the products and services, and (vi)
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


Rackspace Hosting
Brandon Brunson, 512-680-4385
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