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Rackspace Announces Private Cloud Powered by Red Hat
Delivers OpenStack-as-a-Service Backed With a 99.99 Percent OpenStack API Uptime Guarantee

Rackspace® (NYSE: RAX) today announced the release of Rackspace Private Cloud powered by Red Hat®, which delivers OpenStack® private clouds as-a-service using the Red Hat Enterprise Linux® OpenStack Platform. The new offering expands the Rackspace OpenStack-as-a-Service product portfolio, further extending the company's strategy to deliver the most reliable and easy-to-use OpenStack private and hybrid clouds in the world.

"As the leading operator of OpenStack clouds with the most comprehensive OpenStack product portfolio in the industry, Rackspace is excited to expand our managed services and expertise to the Red Hat Enterprise Linux OpenStack Platform," said Darrin Hanson, vice president and general manager of OpenStack Private Cloud at Rackspace. "We help make OpenStack simple by eliminating the complexity and delivering it as-a-service to customers in their data center, a Rackspace data center or in a colocation facility."

Fully managed by OpenStack and Red Hat experts at Rackspace and backed by Fanatical Support®, Rackspace Private Cloud powered by Red Hat provides public cloud benefits with the security, control and performance of an enterprise environment. The offering is backed by an industry-leading 99.99 percent OpenStack API uptime guarantee. Rackspace is contributing to Red Hat's continued efforts to improve Red Hat Enterprise Linux OpenStack Platform by testing and certifying for broad hardware and software compatibility, performance and availability. Rackspace manages and maintains the Red Hat environment including the underlying Red Hat Enterprise Linux, Red Hat Satellite and Red Hat Enterprise Linux OpenStack Platform so customers can focus on their business applications and not their infrastructure.

"We are excited about the launch of Rackspace Private Cloud powered by Red Hat. This solution will further accelerate the adoption of OpenStack by bringing its power to customers keen to consume private cloud delivered as a managed service," said Radhesh Balakrishnan, general manager, OpenStack, at Red Hat. "Red Hat and Rackspace have a long history of working together to deliver leading technology solutions to customers, and we look forward to continuing to drive great outcomes for our customers through this extension of our relationship."

As the 2015 Red Hat North American Cloud Partner of the Year with more than 170 Red Hat certifications and OpenStack operational expertise, Rackspace is uniquely positioned to provide customers the following benefits through a managed deployment of Red Hat powered private clouds:

"We are consistently hearing feedback from enterprises that one of the primary barriers to OpenStack adoption continues to be the operational complexities around deployment," said Gina Longoria, senior analyst at Moor Insights & Strategy. "With Rackspace expanding their offerings to provide a tested and managed deployment of the Red Hat Enterprise Linux OpenStack Platform, customers can take out a lot of the uncertainty of the do it yourself model and leverage the OpenStack as-a-service product portfolio at Rackspace. The company's leadership within OpenStack and long standing operational experience in running OpenStack powered clouds will continue to help drive enterprise adoption."

Rackspace Private Cloud powered by Red Hat is now generally available for customers globally. To learn more, visit Rackspace product page, Rackspace Blog and the Red Hat Blog.

About Rackspace

Rackspace (NYSE: RAX), the #1 managed cloud company, helps businesses tap the power of cloud computing without the challenge and expense of managing complex IT infrastructure and application platforms on their own. Rackspace engineers deliver specialized expertise on top of leading technologies developed by AWS, Microsoft, OpenStack, VMware and others, through a results-obsessed service known as Fanatical Support®. The company has more than 300,000 customers worldwide, including two-thirds of the FORTUNE 100. Rackspace was named a leader in the 2015 Gartner Magic Quadrant for Cloud-Enabled Managed Hosting, and has been honored as one of Fortune's Best Companies to Work For in six of the past eight years. Learn more at www.rackspace.com.

Forward-Looking Statement

This press release 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 development, performance or market acceptance associated with Rackspace Private Cloud powered by Red Hat, anticipated operational and financial benefits from Rackspace Private Clouded powered by Red Hat; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include including the possibility that expected benefits from Rackspace Private Cloud powered by Red Hat may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely affect the product's benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product, and (vi) and other risks that are described in Rackspace Hosting's Form 10-Q for the quarter ended September 30, 2015, filed with the SEC on November 9, 2015. 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.

Red Hat and Red Hat Enterprise Linux, and the Shadowman logo are trademarks of Red Hat, Inc., registered in the U.S. and other countries. Linux® is the registered trademark of Linus Torvalds in the U.S. and other countries. The OpenStack mark is either a registered trademark/service mark or trademark/service mark of the OpenStack Foundation, in the United States and other countries, and is used with the OpenStack Foundation's permission. Red Hat is not affiliated with, endorsed or sponsored by the OpenStack Foundation, or the OpenStack community.

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