Rackspace looks further to the cloud after strong results
Rackspace has announced that they are incorporating their commitment to open source cloud into their official company branding.
The hosting provider is using the tagline “the open cloud company” as part of its logo, reaffirming their belief in the cloud.
This comes after their strong second quarter results for 2012, which included a yearly increase of 29% on net revenue, up to $319 million (£204.1m), up 5.9% from the previous quarter.
Rackspace’s net income grew 43% year on year to $25m (£15.9m), with their adjusted earnings before interest, tax, depreciation and amortisation (EBIDTA) calculated at $112m (£71.7m), a 37% yearly increase.
The company’s shares also shot up to $54.62 (£35) per share, a jump of over 10%.
Rackspace, of course, is trying to promote open source cloud computing through their OpenStack programming code, unveiled in 2010, which they are trying to make a standard.
Last week they announced unlimited availability of its Cloud Servers – which are powered by OpenStack – becoming the first large-scale public cloud deployment which runs on OpenStack and reportedly involves the biggest software investment Rackspace has ever made.
If current trends were to continue indefinitely, it is believed that by 2015 Rackspace could be making more out of this cloud service than its more renowned hosting service.
In a conference call to analysts, Rackspace CEO Lanham Napier stated that the open source was beyond halfway through its transition projects for the year, and that while most of the Open Cloud product will be available in the third quarter, the effects won’t be seen until the fourth.
Napier stated the importance of cloud computing for a company such as Rackspace.
“The technology industry is in the early rounds of a massive secular shift that will change the way businesses consume IT”, he said, adding: “We believe the economics of the cloud will drive an explosion of new demand for computing.
Napier in particular cited Amazon as a company who were able to effectively bet big and right.
He said: “Amazon has been effective at attracting early adopters and evangelising the potential of the public cloud. VMware pioneered the x86 virtualisation market and build a multibillion dollar business selling software to companies building their own small private clouds.
“Our execution in 2012 will influence our competitive position for years to come.”
But can Rackspace get their cloudy offerings to compete with the likes of Amazon and VMware?