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The following content is from an older version of this website, and may not display correctly. Rackspace, the large Texas-based provider of hosting services, has seen its revenue and income increase during the year's second quarter. While cloud computing services remain a much smaller part of the overall revenue than the company's managed hosting offerings, the contribution of Rackpace cloud continues to grow.
Rackspace President and CEO Lanham Napier said the company's performance during first half of the year was indicative that it would deliver on its financial plan. "Our subscription revenue model gives us lots of stability and we are optimistic that we will continue delivering on our goals," he said in a statement.
Rackspace reported total revenue of $187.3m during the quarter, up about 23 percent year-over-year. On that revenue, the company produced net income of $11.2m, up about 60 percent year-over-year.
Managed hosting contributed $164.1m to total revenue and cloud revenue in the second quarter was $23.2m, up from $19.3m cloud computing offerings generated in the year's first quarter.
In the three months Rackspace server count increased by about 2,000 servers to about 61,900 machines and its number of customers went up to about 108,000 from about 99,400 at the end of the first quarter.
The company spent $6m on data center build-out during the quarter. The rest of its capital expenditures went to purchases of customer equipment ($29.6m), capitalized software ($8m) and office build-out ($1.3m).
Rackspace has participated in the launch of a development project for an open-source cloud platform, expanded its channel-partner program and added a number of new enterprise customers to its installed base during the quarter.
The hosting company contributed core code to OpenStack, the open-source cloud platform being developed in conjunction with a group of vendors and the US National Aeronautics and Space Administration. Rackspace plans to continue its involvement in the project, namely expecting to contribute code that will power the OpenStack public cloud due for launch later this year.
During the quarter, Rackspace signed a distribution agreement with Ingram Micro, which will now offer the provider's cloud services to its North American channel partners.
Rackspace President and CEO Lanham Napier said the company's performance during first half of the year was indicative that it would deliver on its financial plan. "Our subscription revenue model gives us lots of stability and we are optimistic that we will continue delivering on our goals," he said in a statement.
Rackspace reported total revenue of $187.3m during the quarter, up about 23 percent year-over-year. On that revenue, the company produced net income of $11.2m, up about 60 percent year-over-year.
Managed hosting contributed $164.1m to total revenue and cloud revenue in the second quarter was $23.2m, up from $19.3m cloud computing offerings generated in the year's first quarter.
In the three months Rackspace server count increased by about 2,000 servers to about 61,900 machines and its number of customers went up to about 108,000 from about 99,400 at the end of the first quarter.
The company spent $6m on data center build-out during the quarter. The rest of its capital expenditures went to purchases of customer equipment ($29.6m), capitalized software ($8m) and office build-out ($1.3m).
Rackspace has participated in the launch of a development project for an open-source cloud platform, expanded its channel-partner program and added a number of new enterprise customers to its installed base during the quarter.
The hosting company contributed core code to OpenStack, the open-source cloud platform being developed in conjunction with a group of vendors and the US National Aeronautics and Space Administration. Rackspace plans to continue its involvement in the project, namely expecting to contribute code that will power the OpenStack public cloud due for launch later this year.
During the quarter, Rackspace signed a distribution agreement with Ingram Micro, which will now offer the provider's cloud services to its North American channel partners.