THE NEW EDGE IN TECHNOLOGY GREAT CUSTOMER SERVICE August 9, Matt Wilbanks Cloud Specialist

Transcription

1 THE NEW EDGE IN TECHNOLOGY GREAT CUSTOMER SERVICE August 9, 2011 Matt Wilbanks Cloud Specialist Safe Harbor Statement This presentation 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 operational and financial results, long term investment strategies, growth plans, expected results from the integration of technologies and acquired businesses, the performance or market share relating to products and services; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include infrastructure failures, the continuation or further deterioration of the current difficult economic conditions or further fluctuations, disruptions, instability or downturns in the economy, the effectiveness of managing company growth, technological and competitive factors, regulatory factors, and other risks that are described in Rackspace Hosting s Form 10-K for the year ended December 31, 2010, filed with the SEC on February 22, 2011 and in Rackspace Hosting s Form 10-Q for the quarter ended March 31, 2011, filed on May 10, 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. Non-GAAP Financial Measures Please note that certain financial measures used in this presentation, such as adjusted EBITDA, are expressed on a non-gaap basis. Adjusted EBITDA has been adjusted to exclude charges relating to stock-based compensation. Our GAAP results and GAAP to non-gaap reconciliation can be found in this presentation, and have been posted on the Investors page of our website, which is found at Trademarks and Service Marks Rackspace and Fanatical Support are our registered service marks. Other trademarks and tradenames appearing in this presentation are the property of their respective holders. We do not intend our use or display of other companies tradenames, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. 2 1

2 NYSE: RAX Founded: 1998 / IPO 2008 Annual Revenue ($M) $781 Headquarters: San Antonio, TX Offices: Austin, TX San Francisco, CA Blacksburg, VA London, UK Amsterdam, NL Hong Kong, China $629 $532 $362 $224 $139 $87 $ Data Centers: San Antonio, Dallas, Chicago, Virginia, London, Hong Kong 3,400+ Rackers 140,000+ Customers 2008, 2009 & ,000+ Servers Online 3 4 2

3 SIZING THE MARKET: HOW BIG? $72B Forrester, Sizing the cloud, March THE RISE OF THE ENTERPRISE CLOUD Today, less than 2% of the top 500,000 web sites are hosted on modern Cloud architectures* *Source: Jack of all Clouds blog: 6 3

4 THE RISE OF THE ENTERPRISE CLOUD Midsize businesses that plan to adopt cloud computing by 2012 expect it to lower their costs by approximately 24%. - Gartner Survey Analysis: North American Midsize Businesses Cite Cloud Intentions - Jan 2011 Today, we ve got 95% of applications running internally and 5% externally. In five years, that ratio will be 80 percent internal and 20% external. -CIO, Fortune 500 financial company. SandHill Group, Leaders in the Cloud (March 2010). By 2012, 20% of businesses will own no IT assets. - Gartner Key Predictions, Jan WHY THE SWITCH? Accessibility Speed PARADIGM SHIFT Companies will consume IT over the web from service providers: radically less expensive; automated; noncore/strategic Cost CLOUD COMPUTING New set of technologies that make existing market opportunity larger and rapidly accelerate this paradigm shift Cloud technologies make IT Hosting more attractive 8 4

5 OUR STRATEGY IS SIMPLE The #1 Specialist in Hosting and Cloud computing Fanatical Support makes us the most trusted partner for business Open technologies at web scale Ensure value and reliability Service Enables CLOUD ADOPTION 9 OUR OFFER A PORTFOLIO APPROACH Fanatical Support Hosting + Cloud Portfolio Choice of Service Levels Leading SLAs 10 5

6 PROVEN BUSINESS MODEL DRIVES FINANCIAL PERFORMANCE Critical Sites Service Intensity Return on Capital Intensive Managed Unmanaged Dedicated Private Cloud Public Cloud OpenStack (off premise) Infrastructure Efficiency

7 Things go Wrong in Computing 13 Hold it Like This 14 7

8 nexus one Help Enter your information in the fields below and click 'Submit' to send an to the Nexus One Team. We'll use the information you've provided to address your. We can't promise a personal reply to each , but will contact you only if we require more information

9 Airing Our Mistakes on YouTube

10 I think I heard you say, Duck You. Press 1 if this is correct

11 It s supposed to be hard. If it wasn t hard, everyone would do it. 21 Hiring: Talent and Culture Fit Really Matter Seamless: Great Technology + Human Performance Transparency: Open Management, Open Book Strengths-based Management Celebrating Fanatical Rackers Racker Engagement Customer Loyalty - Net Promoter Score 22 11

12 9/5/2013 Sk ill Talent Experi ence Hiring: Talent and Culture Fit Really Matter t Fi ent agem Man g Motivation Trainin Educ Influence ation Workstyle Motivation Relationship Influence ThoughtWorkstyle Process Relationship Thought Process 23 CULTURE IMMERSION ROOKIE O 24 12

13 9/5/2013 Seamless: Great Technology + Human Performance 25 TRANSPARENCY OPEN BOOK 26 13

14 FIND WHAT S RIGHT STRENGTHS-BASED MANAGEMENT 27 Celebrate The Fanatical Racker 28 14

15 KEEPING OUR FINGER ON THE 29 WOULD YOUR REFER A FRIEND? NET PROMOTER SCORE Extremely likely %Promoters minus 0-6 Extremely unlikely %Detractors Net Promoter Score (NPS) 30 15

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