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Rackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company’s acqusition of Slicehost last year and will offer the same services as Amazon Web Services’ Elastic Compute Cloud. It’s also a cornerstone of Rackspace’s attempts to build […]

Rackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company’s acqusition of Slicehost last year and will offer the same services as Amazon Web Services’ Elastic Compute Cloud. It’s also a cornerstone of Rackspace’s attempts to build out a cloud computing environment that will rival those of Amazon.com, GoGrid and other true cloud computing providers.

A few weeks ago, I spent a couple hours at the Rackspace headquarters in San Antonio chatting with Lew Moorman, chief strategy officer, and Johnathan Bryce, co-founder of Rackspace’s cloud efforts, about the company’s plans for the cloud. Rackspace, which built out its business (and earned $21.7 million last year on sales of $531.9 million) on hosting dedicated servers, has been building a cloud for more than a year. The goal is to offer clients the ability to stay on dedicated servers with the promise of the cloud in case of overflow. Clients can also choose to stick with dedicated servers or migrate entirely to the cloud. This hybrid strategy means Rackspace can offer a fairly unique product, as Amazon, IBM and HP all lack either the dedicated hosting business or the true cloud computing technology. For now, Rackspace may find its closest competitor in ServePath, which has a product called GoGrid Cloud Connect that ties its dedicated hosting business and the GoGrid compute cloud together.

Rackspace is in a similar boat as large software vendors that are trying to build a software as a service, or SaaS, business while protecting their shrinkware. Offering a smooth flow of data between both dedicated and cloud resources gives Rackspace the chance to ride the transition from dedicated computing to cloud computing, while minimizing cannibalization of its hosted business as customers move to the cloud. For many businesses who are worried about issues associated with throwing their data in the cloud, this could be a way to get them familiar with the model.

A hybrid strategy and moving quickly on the cloud trend should help Rackspace stay afloat — and perhaps even speed ahead.

  1. [...] Rackspace Launches CloudServers, a Cloud for Big Companies Posted on March 12, 2009 by stat3ra Rackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company’s acqusition of Slicehost last year and will offer the same services as Amazon Web Services’ Elastic Compute Cloud. Read More>>> [...]

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  2. [...] Rackspace Launches CloudServers, a Cloud for Big Companies – GigaOm [...]

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  3. [...] Rackspace Launches CloudServers, a Cloud for Big Companies – Gigaom.comRackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company s acqusition of Slicehost last year and will offer the same services as Amazon Web Services Elastic Compute Cloud. It [...]

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  4. [...] Rackspace Launches CloudServers, a Cloud for Big Companies – Gigaom.comRackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company s acqusition of Slicehost last year and will offer the same services as Amazon Web Services Elastic Compute Cloud. It [...]

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  5. [...] March 14, 2009 in Uncategorized I think Amazon just fired a major show across the bow of dedicated hosting companies like ServerBeach and ServePath with their new reserved instance pricing. [...]

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  6. [...] Rackspace Launches CloudServers, a Cloud for Big Companies – Gigaom.comRackspace today is expected to announce its own on-demand computing product, CloudServers. The service is built on the company s acqusition of Slicehost last year and will offer the same services as Amazon Web Services Elastic Compute Cloud. It [...]

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  7. [...] CloudServers products. Thanks to its managed hosting business, Voxel plans to offer the same hybrid strategy that both Rackspace and ServePath offer, which combines dedicated servers with cloud computing for spikes in traffic or [...]

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  8. [...] CloudServers products. Thanks to its managed hosting business, Voxel plans to offer the same hybrid strategy that both Rackspace and ServePath offer, which combines dedicated servers with cloud computing for spikes in traffic or [...]

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  9. [...] CloudServers products. Thanks to its managed hosting business, Voxel plans to offer the same hybrid strategy that both Rackspace and ServePath offer, which combines dedicated servers with cloud computing for spikes in traffic or [...]

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  10. [...] computing tasks to external clouds, be they infrastructure providers like those offered by Amazon, Rackspace’s new CloudServers business, Sun’s planned cloud or platforms such as Microsoft’s [...]

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