San Antonio, Texas - (The Hosting News) - January 28, 2008 - Rackspace Managed Hosting, has revealed a new corporate strategy, based upon a reconfiguration of its identity, to reflect its intention to shift into IT hosting, while transforming traditional IT functions into consumable services via the web.

Lanham Napier, President and CEO, Rackspace noted, ''Rackspace has been focused on Fanatical Support® since the beginning - it's in our DNA - and our new identity reflects that. Now we see the industry shifting to a service-based paradigm. Fanatical Support has been the key to our managed hosting success for the past nine years and will continue to propel us as we embark upon this new era of IT hosting.''

As more enterprises transition from purchasing in-house computing assets to leveraging service providers, Rackspace now offers a suite of hosted IT services that are more reliable and provide better value, including virtualization, hosted mail, custom application support, back-end IT and storage.

The newly-launched name, Rackspace, drops the Managed Hosting” terminology, signifying Rackspace’s new breadth of hosted services supporting companies of all sizes. In addition to Rackspace's traditional managed hosting offering, its venture companies also complement the new strategy. They include: - Mosso, the Rackspace cloud computing brand - Mailtrust, the Rackspace business-class hosted email brand

The new logo incorporates Rackspace's popular ''FANATIGUY'' icon, which better reflects Rackspace's people-centric culture and award-winning Fanatical Support. It also highlights the company's transition from servers to services. Rackspace is moving beyond the historical hardware focus of the web hosting industry and towards a services strategy, assembling the best technologies in the industry and delivering them as a service. Fanatical Support has always been the key differentiator for Rackspace, but through the strategy shift, service will be accentuated even more.

F Daniel Golding, Vice President and Research Director, Tier 1 Research noted, ''As the IT hosting sector evolves, it is becoming that the true competitive differentiator is customer support. As the very idea of IT hosting makes the leap into enterprise adoption, those firms that can offer truly outstanding support will come out on top.''

Mr. Napier added, ''As Rackspace leads the industry's transition to hosted services, we will build upon our core managed hosting business and Fanatical Support. Our new services will compliment our existing portfolio allowing customers to easily offload more and more IT functions to Rackspace.''

Since the company's founding in 1998, Rackspace has grown to more than 2,000 employees world wide, powering through the dotcom bust and moving up to become a leader in the managed hosting space. Growing at approximately 50 percent per year in revenue since the company’s inception nearly ten years ago, Rackspace has been named Microsoft’s Hosting Provider of the Year three times, The American Business Awards Best Customer Service Organization twice and a Leader in Gartner Inc.'s annual North American Web Hosting Magic Quadrant since 2004.

A recognized global managed hosting firm, Rackspace Managed Hosting is a service organization delivering enterprise-level web infrastructure and managed services to businesses of all sizes. Serving more than 15,000 customers across eight data centers worldwide, Rackspace integrates the industry's best technologies for each customer need and delivers it as a service via the company's award-winning Fanatical Support. Founded in 1998, Rackspace has grown more than 50 percent a year since the company's inception. For more information about Rackspace Managed Hosting, please visit: www.rackspace.com.