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Rackspace may be fanatically focused on hosting services, but sometimes it has its head in the clouds. The company provides a range of Web hosting and managed network services for businesses. It primarily offers traditional hosting services with dedicated servers, but it has expanded into cloud hosting, which lets customers utilize pooled server resources on an on-demand basis. Rackspace also provides hosted collaboration, email, and file back-up applications. The company markets its service operations under the name Fanatical Support. It has more than 50,000 enterprise customers and operates nine data centers located in the US, Hong Kong, and the UK.
Rackspace generates most of its revenues from hosting subscription fees, but a small portion is derived from professional services and other non-recurring charges. Its international operations accounted for about 30% of its revenues in 2008.
Rackspace has invested in internal development and acquisitions to build its cloud hosting business, which accounted for about 5% of its revenues in 2008. The company purchased cloud storage specialist Jungle Disk and cloud hosting service provider Slicehost in 2008. Rackspace also offers a suite of combined dedicated and cloud computing services called Hybrid Hosting.