Last updated
Rackspace US, Incorporated
Private company
IndustryManaged cloud computing
Founded1998;21 years ago (1998)
HeadquartersSan Antonio, Texas
Key people
  • Co-Founders:
  • Richard Yoo
  • Dirk Elmendorf
  • Patrick Condon
  • Morris Miller
  • Graham Weston
  • CEO:
  • Kevin Jones [1]
RevenueIncrease2.svg $1.794 billion (2014) [2]
Increase2.svg $163.529 million (2014) [2]
Increase2.svg $110.553 million (2014) [2]
Total assets Increase2.svg $1.624 billion (2014) [2]
Total equity Increase2.svg $1.073 billion (2014) [2]
Owner Apollo Global Management
Website www.rackspace.com

Rackspace Inc. is an American managed cloud computing company based in Windcrest, Texas, a suburb of San Antonio.

Windcrest, Texas City in Texas, United States

Windcrest is a city in Bexar County, Texas, United States. Its population was 5,364 at the 2010 census. It is part of the San Antonio metropolitan area.

Texas State of the United States of America

Texas is the second largest state in the United States by both area and population. Geographically located in the South Central region of the country, Texas shares borders with the U.S. states of Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the west, and the Mexican states of Chihuahua, Coahuila, Nuevo León, and Tamaulipas to the southwest, while the Gulf of Mexico is to the southeast.

Suburb Human settlement that is part of or near to a larger city

A suburb is a mixed-use or residential area, existing either as part of a city or urban area or as a separate residential community within commuting distance of a city. In most English-speaking countries, suburban areas are defined in contrast to central or inner-city areas, but in Australian English and South African English, suburb has become largely synonymous with what is called a "neighborhood" in other countries and the term extends to inner-city areas. In some areas, such as Australia, India, China, New Zealand, the United Kingdom, and a few U.S. states, new suburbs are routinely annexed by adjacent cities. In others, such as Saudi Arabia, Canada, France, and much of the United States, many suburbs remain separate municipalities or are governed as part of a larger local government area such as a county.


The company also has offices in Australia, the United Kingdom, Switzerland, the Netherlands, [3] Germany, Singapore, Mexico and Hong Kong.

Netherlands Constituent country of the Kingdom of the Netherlands in Europe

The Netherlands is a country located mainly in Northwestern Europe. The European portion of the Netherlands consists of twelve separate provinces that border Germany to the east, Belgium to the south, and the North Sea to the northwest, with maritime borders in the North Sea with Belgium, Germany and the United Kingdom. Together with three island territories in the Caribbean Sea—Bonaire, Sint Eustatius and Saba— it forms a constituent country of the Kingdom of the Netherlands. The official language is Dutch, but a secondary official language in the province of Friesland is West Frisian.

Hong Kong East Asian city

Hong Kong, officially the Hong Kong Special Administrative Region of the People's Republic of China and commonly abbreviated as HK, is a special administrative region of China on the eastern side of the Pearl River estuary in southern China. With over 7.4 million people of various nationalities in a 1,104-square-kilometre (426 sq mi) territory, Hong Kong is the world's fourth-most densely populated region.

Rackspace has data centers operating in: [4] Texas, Chicago, Virginia, the United Kingdom, Germany, Australia and Hong Kong.

Chicago City in Illinois, United States

Chicago, officially the City of Chicago, is the most populous city in Illinois, as well as the third most populous city in the United States. With an estimated population of 2,716,450 (2017), it is the most populous city in the Midwest. Chicago is the principal city of the Chicago metropolitan area, often referred to as Chicagoland, and the county seat of Cook County, the second most populous county in the United States. The metropolitan area, at nearly 10 million people, is the third-largest in the United States, and the fourth largest in North America.

Virginia State of the United States of America

Virginia, officially the Commonwealth of Virginia, is a state in the Southeastern and Mid-Atlantic regions of the United States located between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth are shaped by the Blue Ridge Mountains and the Chesapeake Bay, which provide habitat for much of its flora and fauna. The capital of the Commonwealth is Richmond; Virginia Beach is the most populous city, and Fairfax County is the most populous political subdivision. The Commonwealth's estimated population as of 2018 is over 8.5 million.

The company's Rackspace Email division operates from Blacksburg, VA; other offices are located in Austin, Texas. In 2016, Rackspace closed its San Francisco office. [5]

Rackspace Email is an email hosting service offering paid email accounts for businesses using their own domain name.

Blacksburg, Virginia Town in Virginia, United States

Blacksburg is an incorporated town in Montgomery County, Virginia, United States, with a population of 42,620 at the 2010 census. Blacksburg, as well as the surrounding county, is dominated economically and demographically by the presence of Virginia Tech.

Austin, Texas Capital of Texas

Austin is the capital of the U.S. state of Texas and the seat of Travis County, with portions extending into Hays and Williamson counties. It is the 11th-most populous city in the United States and the 4th-most populous city in Texas. It is also the fastest growing large city in the United States, the second most populous state capital after Phoenix, Arizona, and the southernmost state capital in the contiguous United States. As of the U.S. Census Bureau's July 1, 2017 estimate, Austin had a population of 950,715 up from 790,491 at the 2010 census. The city is the cultural and economic center of the Austin–Round Rock metropolitan statistical area, which had an estimated population of 2,115,827 as of July 1, 2017. Located in Central Texas within the greater Texas Hill Country, it is home to numerous lakes, rivers, and waterways, including Lady Bird Lake and Lake Travis on the Colorado River, Barton Springs, McKinney Falls, and Lake Walter E. Long.

Rackspace became public in 2008, and in 2016 was purchased and taken private by Apollo Global Management LLC. [6]

Apollo Global Management, LLC is an American public equity firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations, and industry consolidations. Apollo is headquartered in New York City, and also has offices in Purchase, New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Madrid, Singapore, Hong Kong, Delhi, and Mumbai.


In 1996, Richard Yoo started a small Internet service provider called Cymitar Network Systems out of his garage apartment in San Antonio, Texas. The company began doing application development work in addition to offering basic Internet access and web hosting. In 1997, Yoo brought on Dirk Elmendorf. When the company began to develop Internet applications as its primary business, the company was re-formed as Cymitar Technology Group. As Cymitar Technology Group grew, Patrick Condon was recruited from California and joined the team in 1998. Coincidentally, all three of the company's founders were students at one time at Trinity University in San Antonio.

Richard Yoo American businessman

Richard Yoo is an American entrepreneur, the co-founder and former CEO of the web hosting company Rackspace, and the founder and former CEO of web hosting company ServerBeach.

Internet service provider organization that provides access to the Internet

An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. Internet service providers may be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned.

California State of the United States of America

California is a state in the Pacific Region of the United States. With 39.6 million residents, California is the most populous U.S. state and the third-largest by area. The state capital is Sacramento. The Greater Los Angeles Area and the San Francisco Bay Area are the nation's second- and fifth-most populous urban regions, with 18.7 million and 9.7 million residents respectively. Los Angeles is California's most populous city, and the country's second-most populous, after New York City. California also has the nation's most populous county, Los Angeles County, and its largest county by area, San Bernardino County. The City and County of San Francisco is both the country's second-most densely populated major city after New York City and the fifth-most densely populated county, behind only four of the five New York City boroughs.

Although the founders began as application developers for end users, they found that most companies did not either know how or want to host their applications. The founders wanted to focus on application development–not hosting–but they were unable to find an opportunity to outsource the hosting work. Eventually, the founders realized that it would be better to create a product to serve the hosting need and launch it as a company. Rackspace was launched in October 1998 with Richard Yoo as its CEO. Although most hosting companies focused on the technology end of hosting, Rackspace created its "Fanatical Support" offering to focus on service and support. [7] On March 28, 2000, Rackspace received funding through lead investor Norwest Venture Partners and Sequoia Capital. George J. Still, Jr., Managing Partner at Norwest, subsequently joined the Board of Directors. [8]

The pre-2008 Rackspace Logo Rackspace.png
The pre-2008 Rackspace Logo

In 2008, Rackspace moved their headquarters from a building once occupied by Datapoint Corporation to the then-unoccupied Windsor Park Mall in Windcrest, Texas. Rackspace's Chairman, Graham Weston, owned the Montgomery Ward building in the mall until 2006, when it was sold to a developer. The city of Windcrest purchased 111 acres (0.45 km2) south of the mall to create a residential and retail complex. [9] The facility is located next to Roosevelt High School, and many Roosevelt students intern at Rackspace.[ citation needed ]

Fortune 's "Top 100 Best Companies to Work For 2008" placed Rackspace as No.32 the first year that Rackspace applied for consideration. The company was praised for its transparency. Regular "Open Book" meetings are held where the top level leaders share in-depth financial information with all employees. [10] In 2011 and 2013, the company was named as one of the top 100 places to work by Fortune. [11] [12]

On August 8, 2008, Rackspace opened for trading on the New York Stock Exchange under the ticker symbol "RAX" after its initial public offering (IPO) in which it raised $187.5 million. [13] The initial public offering included 15,000,000 shares of its common stock at a price of $12.50 per share. [14] The IPO did not do well in the public market and lost about 20% of its initial price almost immediately. [15]

At around 3:45PM CST December 18, 2009, Rackspace experienced an outage for customers using their Dallas–Fort Worth data center – including those of Rackspace Cloud. [16]

On September 8, 2010, Rackspace received national attention when they decided to discontinue providing web hosting service to one of their customers, Dove World Outreach Center. [17] This was in reaction to Dove World's pastor Terry Jones' plan to burn several copies of the Qur'an on the anniversary of the September 11th attacks. Rackspace claims that this violated their company policy. This move came under criticism, notably from Terry Jones himself, who described it as an "indirect attack on our freedom of speech." Others questioned the appropriateness of Rackspace's action, stating that there is "absolutely no reason for web hosts to have an editorial policy, and this only gives Jones more attention, and makes him look more persecuted." [18]

On June 3, 2011, Rackspace intervened in an application by Queensland host Rack Servers to trademark its business name in Australia. [19]

On May 26, 2013, Author Bill Schley's book 'The UnStoppables', which was inspired by the culture at Rackspace, became a New York Times bestseller. [20]

On May 15, 2014, Rackspace hired Morgan Stanley to evaluate strategic options including selling to or merging with other technology companies. [21]

In October 2014, Rackspace announced that it would sell and support Google Work apps for business customers. [22]

In August 2016, it was confirmed that Apollo Global Management had reached an agreement to buy the company for $4.3 billion. [23] The sale was completed in November 2016 and Rackspace officially ended trading on the New York Stock Exchange on November 3, 2016. [24]

In May 2017, CEO Taylor Rhodes announced he was leaving the company on May 16 to work for a smaller private company in a different city. [25] In May 2017, Rackspace named Joe Eazor as its new CEO. [26] In April of 2019, the company named Kevin Jones as its new CEO. [27]


On September 17, 2018, Rackspace announced it had acquired RelationEdge. [28]

On September 11, 2017, Rackspace announced plans to acquire Datapipe. [29]

On May 25, 2017, Rackspace announced an agreement to acquire TriCore Solutions. [30]

On October 22, 2008, Rackspace announced it was purchasing cloud storage provider Jungle Disk and VPS provider SliceHost. [31]

On February 16, 2012, Rackspace acquired SharePoint911, a Microsoft SharePoint consulting company based in Cincinnati, Ohio. [32]

Other acquisitions include Cloudkick, Anso Labs, Mailgun, [33] ObjectRocket, [34] Exceptional Cloud Services, and ZeroVM.

Involvement with other companies

Rackspace launched ServerBeach in San Antonio in January 2003 as a lower-cost alternative for dedicated servers designed for technology hobbyists who want flexibility and reliability. Richard Yoo was a catalyst in the startup of ServerBeach. A bandwidth and colocation provider, Peer 1 Hosting now known as Cogeco Peer 1, purchased ServerBeach in October 2004 for $7.5 Million. [35] Peer 1 Hosting entered the UK managed hosting market in January 2009 and the ServerBeach brand now competes directly with the UK arm of Rackspace, run by Dominic Monkhouse, former managing director of Rackspace Limited. [36]

In October 2006, Mosso Inc. was launched, which experimented with white-labeling hosting services. [37] Eventually, the division became the foundation for the Rackspace Cloud Computing offering.

On October 1, 2007, Rackspace acquired Webmail.us, a private e-mail hosting firm located in Blacksburg, VA. Originally branded as Mailtrust on May 20, 2009, it became part of the newly formed Cloud Office division of Rackspace.

On October 22, 2008, Rackspace acquired Slicehost, a provider of virtual servers [38] and Jungle Disk, a provider of online backup software and services. [39]

Rackspace announced on March 8, 2017, plans for an expansion to its portfolio to include managed service for the Google Cloud Platform. [40] The program began beta testing on July 18, 2017, with a planned full offering in late 2017. [41] Rackspace partnered with Google in Customer Reliability Engineering, a group of Google Site Reliability Engineers, to ensure cloud applications "run with the same speed and reliability as some of Google's most widely-used products". [41]


In 2010, Rackspace contributed the source code of its Cloud Files product to the OpenStack project under the Apache License to become the OpenStack Object Storage component. [42] [43]

In April 2012, Rackspace announced it would implement OpenStack Compute as the underlying technology for their Cloud Servers product. This change introduced a new control panel as well as add-on cloud services offering databases, server monitoring, block storage, and virtual networking. [44] In 2015, two Rackspace executives were elected to the board of the OpenStack Foundation. [45] In a February 2016 interview, CTO John Engates stated that Rackspace use OpenStack to power their public and private cloud. [46]

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DreamHost is a Los Angeles-based web hosting provider and domain name registrar. It is owned by New Dream Network, LLC, founded in 1996 by Dallas Bethune, Josh Jones, Michael Rodriguez and Sage Weil, undergraduate students at Harvey Mudd College in Claremont, California, and registered in 1997 by Michael Rodriguez. DreamHost began hosting customers' sites in 1997. In May 2012, DreamHost spun off Inktank. Inktank is a professional services and support company for the open source Ceph file system. In November 2014, DreamHost spun off Akanda, an open source network virtualization project.As of February 2016, Dreamhost employs about 200 employees and has close to 400,000 customers.

F5 Networks computer networking appliance developer

F5 Networks, Inc. is a global company that specializes in application services and application delivery networking (ADN). F5 technologies focus on the delivery, security, performance, and availability of web applications, as well as the availability of servers, cloud resources, data storage devices, and other networking components. F5 is headquartered in Seattle, Washington, with additional development, manufacturing, and sales/marketing offices worldwide.

Savvis company

Savvis, formerly SVVS on Nasdaq and formerly known as Savvis Communications Corporation, and, later, Savvis Inc., is a subsidiary of CenturyLink, a company headquartered in Monroe, Louisiana. The company sells managed hosting and colocation services with more than 50 data centers in North America, Europe, and Asia, automated management and provisioning systems, and information technology consulting. Savvis has approximately 2,500 unique business and government customers.

Hostway is a multinational hybrid hosting, web hosting, and technology infrastructure hosting company headquartered in Austin, Texas, United States, founded in 1998. It provides individuals, small- to medium-sized businesses and large corporations with email and hosting services for web sites, databases, business applications, and managed web hosting. Hostway Services Inc. serves more than 600,000 customers worldwide.

Rackspace Cloud

The Rackspace Cloud is a set of cloud computing products and services billed on a utility computing basis from the US-based company Rackspace. Offerings include web application hosting or platform as a service, Cloud Storage, virtual private server, load balancers, databases, backup, and monitoring.

RightScale is a company that sells software as a service for cloud computing management for multiple providers. The company is based in Santa Barbara, California.

Cloud computing form of Internet-based computing that provides shared computer processing resources and data to computers and other devices on demand

Cloud computing is the on demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. The term is generally used to describe data centers available to many users over the Internet. Large clouds, predominant today, often have functions distributed over multiple locations from central servers. If the connection to the user is relatively close, it may be designated an edge server.

Cogeco Peer 1

Cogeco Peer 1 is a wholly owned subsidiary of Cogeco Communications Inc. which provides business-to-business products and services, such as colocation, network connectivity, managed hosting, cloud services and IT managed services.

Jungle Disk is both the name of an online backup software service and a privately held data security company with a suite of products that also includes a network protection service and email archiving. It was one of the first backup services to use cloud storage and Amazon S3. In 2009 after being acquired by Rackspace the service added Rackspace Cloud Files. The name is a word association as the Amazon rainforest is a Jungle and Disk is a common shorthand for a hard disk drive.

Datapipe was a provider of managed hosting services and data centers for information technology services and cloud computing with data centers in Somerset, New Jersey, San Jose, California, the United Kingdom, and China. The company was founded in 1998 and is headquartered in Jersey City, New Jersey. Since 2011, more data centers have been added, including in Ashburn, Virginia, Moscow, and Singapore.


Internap Corporation is a global provider of performance-driven, full-spectrum data center and cloud solutions. The company is headquartered in Atlanta, Georgia, United States with company-controlled data centers located in North America, EMEA and APAC. INAP delivers its Performance IP, hosting, cloud, colocation and hybrid infrastructure services through Private Network Access Points (P-NAP®) in North America, Europe, Asia-Pacific and Australia.

Kaavo is a cloud computing management company. Kaavo was founded in November 2007 in the U.S. Kaavo pioneered top-down application-centric management of cloud infrastructure across public, private, and hybrid clouds.

OpSource, Inc. is a cloud and managed services hosting company headquartered in Santa Clara, California. The company also has offices in Ashburn, Virginia, Ireland and India, and data centers in California, Virginia and the United Kingdom. OpSource is now part of the ICT company Dimension Data which acquired OpSource in 2011 for their Cloud Business Unit.

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