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Matt Wilbanks Cloud Specialist

THE NEW EDGE IN TECHNOLOGY GREAT CUSTOMER SERVICE August 9, 2011. Matt Wilbanks Cloud Specialist. Safe Harbor Statement

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Matt Wilbanks Cloud Specialist

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  1. THE NEW EDGE IN TECHNOLOGY GREAT CUSTOMER SERVICE August 9, 2011 Matt Wilbanks Cloud Specialist

  2. 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, 2011. 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 www.rackspace.com. 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

  3. NYSE: RAX • Founded: 1998 / IPO 2008 • Headquarters: San Antonio, TX • Offices: • Austin, TX • San Francisco, CA • Blacksburg, VA • London, UK • Amsterdam, NL • Hong Kong, China • Data Centers: San Antonio, Dallas, Chicago, • Virginia, London, Hong Kong • 3,400+ Rackers • 140,000+ Customers • 70,000+Servers Online 45% CAGR 2008, 2009 & 2010 3

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  5. SIZING THEMARKET: HOWBIG? $72B Forrester, “Sizing the cloud,” March 2011 5

  6. THE RISE OF THE ENTERPRISECLOUD • Today, less than 2% of the top 500,000 web sites are hosted on modern Cloud architectures* *Source: Jack of all Clouds blog: http://www.jackofallclouds.com/2011/01/state-of-the-cloud-january-201/ 6

  7. THE RISE OF THE ENTERPRISECLOUD “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. “By 2012, 20% of businesses will own no IT assets.” SandHill Group, Leaders in the Cloud (March 2010). - Gartner Key Predictions, Jan. 2010 7

  8. WHY THESWITCH? PARADIGM SHIFT– Companies will consume IT over the web from service providers: radically less expensive; automated; non-core/strategic AccessibilitySpeed CLOUD COMPUTING – New set of technologies that make existing market opportunity larger and rapidly accelerate this paradigm shift Cost Cloud technologies make IT Hosting more attractive 8

  9. OUR STRATEGY ISSIMPLE The #1 Specialistin 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

  10. i OUR OFFER A PORTFOLIO APPROACH • Fanatical Support • Hosting + Cloud Portfolio • Choice of Service Levels • Leading SLAs 10

  11. PROVEN BUSINESS MODEL DRIVES FINANCIAL PERFORMANCE 11

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  13. Things go Wrong in Computing 13

  14. Hold it Like This 14

  15. nexus one Help “Enter your information in the fields below and click 'Submit' to send an email to the Nexus One Team. We'll use the information you've provided to address your inquiry. We can't promise a personal replyto each email, but will contact you only if we require more information. “ 15

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  17. Airing Our Mistakes on YouTube 17

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  19. I think I heard you say, “Duck You.” Press “1” if this is correct. 19

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  21. “It’s supposed to be hard. If it wasn’t hard, everyone would do it.” 21

  22. 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

  23. Hiring: Talent and Culture Fit Really Matter • Talent • Motivation • Influence • Workstyle • Relationship • Thought • Process • Motivation • Influence • Workstyle • Relationship • Thought • Process 23

  24. CULTURE IMMERSIONROOKIE O 24

  25. Seamless: Great Technology + Human Performance 25

  26. TRANSPARENCYOPEN BOOK 26

  27. FIND WHAT’S RIGHTSTRENGTHS-BASED MANAGEMENT 27

  28. Celebrate The Fanatical Racker 28

  29. KEEPING OUR FINGER ON THE 29

  30. WOULD YOUR REFER A FRIEND?NET PROMOTER SCORE Extremely likely 9-10 %Promoters minus 7-8 %Detractors 0-6 Net Promoter Score (NPS) Extremely unlikely 30

  31. Matt Wilbanks • mw@rackspace.com • Office: (210) 312-5464 • www.rackspace.com • @MWilbanks 31

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