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DEV/OPS, CONTINUOUS DEPLOYMENT
          & APIS, OH MY!


Matt Tesauro, Texas Linux Fest
 ā€“ San Antonio, TX, August 2012
2




WHO AM I?
Matt Tesauro ā€“ Cloud Application Security Guy + OWASP


 Racker since October 2011

 Rackspaceā€™s Cloud Product Group

 Work with developers and QE


                                          matt.tesauro@rackspace.com



                                   OWASP International Foundation Board
                                       Member and Treasurer

                                   Project Leader of OWASP Live CD &
                                                  OWASP WTE projects

       matt.tesauro@owasp.org

                                                        RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
3




RACKSPACEĀ® HOSTING
The Service Leader in Cloud Computing

        4,000+
     RACKERS                      WE SERVE
      172,000+
   CUSTOMERS
                                40%      OF
                                         THE


                                FORTUNEĀ® 100
             120 +
        COUNTRIES


   9 GLOBAL DATA
        CENTERS
                                    LEADER IN
                              GARTNER'S MAGIC
                     RAX        QUADRANT FOR
                             MANAGED HOSTING

2008, 2010, 2011
    & 2012

                                               RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
OUR VISION
To be recognized as one of the
Worldā€™s greatest service companies.




                                 RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                              4
RAX CLOUD APPROACH
Open source orchestration, management & provisioning
cloud platform




                                           RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
6




THE FUTURE: FANATICAL SUPPORT
ANYWHERE
Rackspace Provides
The Fanatical Support



 DEDICATED      PUBLIC CLOUD   PRIVATE CLOUD   PRIVATE CLOUD                 PUBLIC CLOUD




              RACKSPACE LOCATIONS              CUSTOMER SITE                   PROVIDER DC



      ā€¢   One Control Panel across OpenStack connected clouds
      ā€¢   One Fanatical Support Team
      ā€¢   Our Cloud, Your Cloud, Partner Hosted OpenStack Cloud
      ā€¢   Global Reach
                                                               RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                                            6
SECURING APPS IN A
  DevOps WORLD




                 RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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A quick Overview of DevOps
ā€¢     The combination of traditional development activities with operations and
      testing (QA/QE)


ā€¢     Collaboration, communication and integration is key


ā€¢     Agile development model (sprints, scrum, ā€¦)


ā€¢     Release coordination and automation


    "DevOps" is an emerging set of principles, methods and practices for
    communication, collaboration and integration between software development
    (application/software engineering) and IT operations (systems
    administration/infrastructure) professionals.

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CI, CD, CD, TDD and API
CI == Continuous Integration


CD == Continuous Deployment


CD == Continuous Delivery


TDD == Test Driven Development


API == Application Programming Interface




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10




THE PROBLEM
         ā€¢ Cycle time for software is getting
           shorter

         ā€¢ Continuous delivery is a goal

         ā€¢ Scanning windows are not viable

         ā€¢ First mover / first to market
           advantage



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                                                                                10
THE PROBLEM ā€“ or at least more
ā€¢ Traditional software development left little time to test

ā€¢ DevOps, Agile and Continuous Delivery squeeze those windows
  even more

ā€¢ New languages and programming methods arenā€™t making
   this better

    ā€¢ Growth of interpreted languages with loose typing
       hurts static analysis efforts

    ā€¢ Few automated tools to test APIs especially
       RESTful APIs

ā€¢ Little time for any testing, manual testing is doomed


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12




 THE SOLUTION

ā€¢ Automated software
  testing
ā€¢ Automated operational
  infrastructure
ā€¢ Automated security
  testing




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                                                                       12
Think like a developer
Sprints break software into little piecesā€¦
ā€¢ Break your testing into little pieces
ā€¢ Use your threat model to know the crucial bits to test

Long and short running tests

ā€¢ Testing time drives testing frequency

ā€¢ Code for tests needs to be optimized

Smoke test versus full regression test

ā€¢ Smoke test early and often

ā€¢ Full regression tests on regular intervals

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                                                                                                        13
Maximize what youā€™ve got
Make the most of your frameworks
ā€¢ Embrace, understand and fill gaps where necessary

Make the best use of your timeā€¦
ā€¢ Make tests easily repeatable
ā€¢ Make tests easy to understand

ā€¢ Make tests abstract and combine-able

   ā€¢ Ala carte tests for mixing and matching

   ā€¢ Think about the Unix pipe | and its power


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                                                                                                   14
Test Driven Development Security
Under the constraints of DevOps, Continuous Deployment

  Your testing has to be nimble
                             Dare I sayā€¦Agile


                    In TDD, you know your code works
                    when the tests pass

                    In TD(S), you know your app has met
                    the baseline when the tests pass
                                           RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                        15
A snail on fire!




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17




AUTOMATING




   ā€¢ Declarative configuration language
   ā€¢ Plain-text configuration in source control
   ā€¢ Fully programmatic, no manual interactions

                                      RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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18




CHEF
                                          Server / Hosted / Private



1. Solo
                    Racker
2. Server

3. Hosted

4. Private Hosted            Node
                              Node
                                             Node
                                              Node
                                                                     Node
                                                                      Node
                                Node            Node                    Node
                                  Node            Node                    Node
                                   Node            Node                    Node




                                                     RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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COOKBOOKS

            ā€¢ Most major software
              packages have cookbooks
            ā€¢ You will have to write your
              own / customize
            ā€¢ Good place to spend
              security cycles
             - Merge patches upstream for
               extra points.




                             RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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20




GROUPING & TAGGING

           Node                       ā€¢ Tagging your
            Node
 Apache       Node                      servers applies
                Node
                  Web                   the required set of
                                        recipes
           Node                       ā€¢ A base set of
            Node
 MySql        Node
                Node
                                        recipes is
                  DB
                                        common
                                      ā€¢ Each server will
           Node
            Node
                                        have multiple tags
Memcache      Node
                Node                    set at bootstrap
                 Cache
                                        time

                         Monitoring                                                       20
                                             RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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LIMITATIONS

ā€¢ Focus on single machines           Cloud Load Balancer

ā€¢ A multi-box configuration
  is based on copying
                               Web      Web          Web                    Web
  existing configurations
ā€¢ No support for implicit
  application or environment   Memcached
                                                      Database as a
                                                         Service
  configuration
ā€¢ Applications include more
                                Cloud Files                    CDN
  than just servers
ā€¢ Images have security
  issues
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22




CHECKMATE


                                       Inspector
                                       ā€¢ Verification
                    Contractor         ā€¢ Due Diligence
                    ā€¢ Decomposition
 Architect          ā€¢ Orchestration
 ā€¢ Templates
 ā€¢ Questions



 A system to build generic application configurations
                                         RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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23




ARCHITECTURE                         ā€¢ Components communicate
                                       through a common queue
            Architect                ā€¢ Each provisioning
                                       component is independent


Checkmate   Message     Contractor                 Compute
   Web       Queue

                                         Caching                         Storage


                                                   Message
            Inspector
                                                   Queue

                                                                          Load
                                         Hadoop
                                                                        Balancer


                                                   Database


                                                        RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                                     23
24


                                base:

ARCHITECT                        name: wordpress large
                                  environment-name: {tenantId}-
                                wordpress-large

          Template
                                providers:
                                 - rackspace:
                                    - compute: &rax-cloud-servers
 Generic Provider Definitions
                                        endpoint: https://...
                                    - loadbalancer: &rax-lbaas
   Architecture Questions
                                        endpoint: https://...
                                    - database: &rax-dbaas
       Scaling Factors                  endpoint: https://...
                                    - common:
                                    vendor: rackspace
                                    credentials:
                                        - token: {token}
                                                 RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
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25




ARCHITECT

          Template              ā€¢ Requests per hour?
                                ā€¢ Budget
 Generic Provider Definitions   ā€¢ High availability
                                ā€¢ Disaster resistant
   Architecture Questions
                                ā€¢ SSL
       Scaling Factors          ā€¢ Backup
                                ā€¢ CDN
                                                                                                 ā€¦


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26




ARCHITECT                       tiers:
                                - name: web
                                  resource: &loadbalancer
                                    min-occur: 1
          Template                  type: loadbalancer
                                    connection: public
                                      port: [80, 443]
                                      allow: all
 Generic Provider Definitions         isolation: none
                                  resource: &webheads
                                    min-occur: 2
   Architecture Questions           type: compute
                                    os: Ubuntu 11.10
                                    memory-min: 2Gb
                                    memory-max: 4Gb
       Scaling Factors
                                    configs:
                                    - wordpress-mp
                                      attributes:
                                      - role: web
                                      connection: *database



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37




CONTRACTOR
ā€¢ Takes Architectā€™s plan and
  builds it
ā€¢ Task Decomposition
 - Uses standard workflow
   patterns
ā€¢ Orchestration / Ordering
ā€¢ Status Reporting
ā€¢ Farms out tasks to sub-
                             Our current implementation uses an open source
  contractors                    Python workflow engine, SpiffWorkflow.




                                                        RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                                     37
38




INSPECTOR
ā€¢ Takes Architectā€™s plan &
  contractorā€™s output
ā€¢ Focuses on checking for
  code compliance
 - Not perfection, bare minimums
ā€¢ Can include multiple facets
 - Security
 - Scalability
                               Our current implementation includes WP Scan for
 - Compliance                   WordPress and the Nikto vulnerability scanner.




                                                           RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                                        38
39




INSPECTOR
+ Server: Apache/2.2.12 (Ubuntu)
+ No CGI Directories found (use '-C all' to force check all
possible dirs)
+ Apache/2.2.12 appears to be outdated (current is at least
Apache/2.2.17). Apache 1.3.42 (final release) and 2.0.64 are also
current.
+ ETag header found on server, inode: 12534048, size: 317, mtime:
0x4b9436dbea280
+ Allowed HTTP Methods: GET, HEAD, POST, OPTIONS
+ OSVDB-3268: /icons/: Directory indexing found.
+ OSVDB-3233: /icons/README: Apache default file found.
+ 6448 items checked: 0 error(s) and 5 item(s) reported




                                                  RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                               39
40




INSPECTOR
[!] The WordPress "http://---.com/readme.html" file exists.
[!] WordPress version 3.1 identified from meta generator.

[+] Enumerating installed plugins...Checking for 2394 total
plugins
[+] We found 2 plugins:
Name: disqus-comment-systemLocation:
Name: wordpress-popular-postsLocation:

[+] There were 1 vulnerabilities identified from the plugin
names:

[!] ["WordPress Plugin Disqus Comment System <= 2.68 Reflected
Cross-Site Scripting (XSS)"]*




                                                 RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                              40
41




FUTURE WORK

     Monitor           Architect
     ā€¢ Trending        ā€¢ Templates
     ā€¢ Thresholding    ā€¢ Questions




     Inspector         Contractor
     ā€¢ Verification    ā€¢ Decomposition
     ā€¢ Due Diligence   ā€¢ Orchestration

                                     RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                  41
So I was talking with a friendā€¦
He was bemoaning the pace of change and the speed at which software
was being pushed to productionā€¦
In essence, management has made the decision that
getting their app out the door with possible bugs is
more valuable to the business then having strong
assurance that the software has few or no significant
bugs.
                   Youā€™ve got to up your game,
                      get automated, agile and
                      get on pace with your developers.




                                                          RACKSPACEĀ® HOSTING   |   WWW.RACKSPACE.COM
                                                                                                       42
ANY QUESTIONS?




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DevOps, CI, APIs, Oh My! - Texas Linux Fest 2012

  • 1. DEV/OPS, CONTINUOUS DEPLOYMENT & APIS, OH MY! Matt Tesauro, Texas Linux Fest ā€“ San Antonio, TX, August 2012
  • 2. 2 WHO AM I? Matt Tesauro ā€“ Cloud Application Security Guy + OWASP Racker since October 2011 Rackspaceā€™s Cloud Product Group Work with developers and QE matt.tesauro@rackspace.com OWASP International Foundation Board Member and Treasurer Project Leader of OWASP Live CD & OWASP WTE projects matt.tesauro@owasp.org RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM
  • 3. 3 RACKSPACEĀ® HOSTING The Service Leader in Cloud Computing 4,000+ RACKERS WE SERVE 172,000+ CUSTOMERS 40% OF THE FORTUNEĀ® 100 120 + COUNTRIES 9 GLOBAL DATA CENTERS LEADER IN GARTNER'S MAGIC RAX QUADRANT FOR MANAGED HOSTING 2008, 2010, 2011 & 2012 RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM
  • 4. OUR VISION To be recognized as one of the Worldā€™s greatest service companies. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 4
  • 5. RAX CLOUD APPROACH Open source orchestration, management & provisioning cloud platform RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM
  • 6. 6 THE FUTURE: FANATICAL SUPPORT ANYWHERE Rackspace Provides The Fanatical Support DEDICATED PUBLIC CLOUD PRIVATE CLOUD PRIVATE CLOUD PUBLIC CLOUD RACKSPACE LOCATIONS CUSTOMER SITE PROVIDER DC ā€¢ One Control Panel across OpenStack connected clouds ā€¢ One Fanatical Support Team ā€¢ Our Cloud, Your Cloud, Partner Hosted OpenStack Cloud ā€¢ Global Reach RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 6
  • 7. SECURING APPS IN A DevOps WORLD RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 7
  • 8. A quick Overview of DevOps ā€¢ The combination of traditional development activities with operations and testing (QA/QE) ā€¢ Collaboration, communication and integration is key ā€¢ Agile development model (sprints, scrum, ā€¦) ā€¢ Release coordination and automation "DevOps" is an emerging set of principles, methods and practices for communication, collaboration and integration between software development (application/software engineering) and IT operations (systems administration/infrastructure) professionals. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 8
  • 9. CI, CD, CD, TDD and API CI == Continuous Integration CD == Continuous Deployment CD == Continuous Delivery TDD == Test Driven Development API == Application Programming Interface RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 9
  • 10. 10 THE PROBLEM ā€¢ Cycle time for software is getting shorter ā€¢ Continuous delivery is a goal ā€¢ Scanning windows are not viable ā€¢ First mover / first to market advantage RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 10
  • 11. THE PROBLEM ā€“ or at least more ā€¢ Traditional software development left little time to test ā€¢ DevOps, Agile and Continuous Delivery squeeze those windows even more ā€¢ New languages and programming methods arenā€™t making this better ā€¢ Growth of interpreted languages with loose typing hurts static analysis efforts ā€¢ Few automated tools to test APIs especially RESTful APIs ā€¢ Little time for any testing, manual testing is doomed RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 11
  • 12. 12 THE SOLUTION ā€¢ Automated software testing ā€¢ Automated operational infrastructure ā€¢ Automated security testing RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 12
  • 13. Think like a developer Sprints break software into little piecesā€¦ ā€¢ Break your testing into little pieces ā€¢ Use your threat model to know the crucial bits to test Long and short running tests ā€¢ Testing time drives testing frequency ā€¢ Code for tests needs to be optimized Smoke test versus full regression test ā€¢ Smoke test early and often ā€¢ Full regression tests on regular intervals RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 13
  • 14. Maximize what youā€™ve got Make the most of your frameworks ā€¢ Embrace, understand and fill gaps where necessary Make the best use of your timeā€¦ ā€¢ Make tests easily repeatable ā€¢ Make tests easy to understand ā€¢ Make tests abstract and combine-able ā€¢ Ala carte tests for mixing and matching ā€¢ Think about the Unix pipe | and its power RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 14
  • 15. Test Driven Development Security Under the constraints of DevOps, Continuous Deployment Your testing has to be nimble Dare I sayā€¦Agile In TDD, you know your code works when the tests pass In TD(S), you know your app has met the baseline when the tests pass RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 15
  • 16. A snail on fire! RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 16
  • 17. 17 AUTOMATING ā€¢ Declarative configuration language ā€¢ Plain-text configuration in source control ā€¢ Fully programmatic, no manual interactions RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 17
  • 18. 18 CHEF Server / Hosted / Private 1. Solo Racker 2. Server 3. Hosted 4. Private Hosted Node Node Node Node Node Node Node Node Node Node Node Node Node Node Node RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 18
  • 19. 19 COOKBOOKS ā€¢ Most major software packages have cookbooks ā€¢ You will have to write your own / customize ā€¢ Good place to spend security cycles - Merge patches upstream for extra points. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 19
  • 20. 20 GROUPING & TAGGING Node ā€¢ Tagging your Node Apache Node servers applies Node Web the required set of recipes Node ā€¢ A base set of Node MySql Node Node recipes is DB common ā€¢ Each server will Node Node have multiple tags Memcache Node Node set at bootstrap Cache time Monitoring 20 RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM
  • 21. 21 LIMITATIONS ā€¢ Focus on single machines Cloud Load Balancer ā€¢ A multi-box configuration is based on copying Web Web Web Web existing configurations ā€¢ No support for implicit application or environment Memcached Database as a Service configuration ā€¢ Applications include more Cloud Files CDN than just servers ā€¢ Images have security issues RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 21
  • 22. 22 CHECKMATE Inspector ā€¢ Verification Contractor ā€¢ Due Diligence ā€¢ Decomposition Architect ā€¢ Orchestration ā€¢ Templates ā€¢ Questions A system to build generic application configurations RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 22
  • 23. 23 ARCHITECTURE ā€¢ Components communicate through a common queue Architect ā€¢ Each provisioning component is independent Checkmate Message Contractor Compute Web Queue Caching Storage Message Inspector Queue Load Hadoop Balancer Database RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 23
  • 24. 24 base: ARCHITECT name: wordpress large environment-name: {tenantId}- wordpress-large Template providers: - rackspace: - compute: &rax-cloud-servers Generic Provider Definitions endpoint: https://... - loadbalancer: &rax-lbaas Architecture Questions endpoint: https://... - database: &rax-dbaas Scaling Factors endpoint: https://... - common: vendor: rackspace credentials: - token: {token} RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 24
  • 25. 25 ARCHITECT Template ā€¢ Requests per hour? ā€¢ Budget Generic Provider Definitions ā€¢ High availability ā€¢ Disaster resistant Architecture Questions ā€¢ SSL Scaling Factors ā€¢ Backup ā€¢ CDN ā€¦ RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 25
  • 26. 26 ARCHITECT tiers: - name: web resource: &loadbalancer min-occur: 1 Template type: loadbalancer connection: public port: [80, 443] allow: all Generic Provider Definitions isolation: none resource: &webheads min-occur: 2 Architecture Questions type: compute os: Ubuntu 11.10 memory-min: 2Gb memory-max: 4Gb Scaling Factors configs: - wordpress-mp attributes: - role: web connection: *database RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 26
  • 27. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 27
  • 28. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 28
  • 29. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 29
  • 30. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 30
  • 31. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 31
  • 32. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 32
  • 33. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 33
  • 34. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 34
  • 35. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 35
  • 36. 37 CONTRACTOR ā€¢ Takes Architectā€™s plan and builds it ā€¢ Task Decomposition - Uses standard workflow patterns ā€¢ Orchestration / Ordering ā€¢ Status Reporting ā€¢ Farms out tasks to sub- Our current implementation uses an open source contractors Python workflow engine, SpiffWorkflow. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 37
  • 37. 38 INSPECTOR ā€¢ Takes Architectā€™s plan & contractorā€™s output ā€¢ Focuses on checking for code compliance - Not perfection, bare minimums ā€¢ Can include multiple facets - Security - Scalability Our current implementation includes WP Scan for - Compliance WordPress and the Nikto vulnerability scanner. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 38
  • 38. 39 INSPECTOR + Server: Apache/2.2.12 (Ubuntu) + No CGI Directories found (use '-C all' to force check all possible dirs) + Apache/2.2.12 appears to be outdated (current is at least Apache/2.2.17). Apache 1.3.42 (final release) and 2.0.64 are also current. + ETag header found on server, inode: 12534048, size: 317, mtime: 0x4b9436dbea280 + Allowed HTTP Methods: GET, HEAD, POST, OPTIONS + OSVDB-3268: /icons/: Directory indexing found. + OSVDB-3233: /icons/README: Apache default file found. + 6448 items checked: 0 error(s) and 5 item(s) reported RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 39
  • 39. 40 INSPECTOR [!] The WordPress "http://---.com/readme.html" file exists. [!] WordPress version 3.1 identified from meta generator. [+] Enumerating installed plugins...Checking for 2394 total plugins [+] We found 2 plugins: Name: disqus-comment-systemLocation: Name: wordpress-popular-postsLocation: [+] There were 1 vulnerabilities identified from the plugin names: [!] ["WordPress Plugin Disqus Comment System <= 2.68 Reflected Cross-Site Scripting (XSS)"]* RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 40
  • 40. 41 FUTURE WORK Monitor Architect ā€¢ Trending ā€¢ Templates ā€¢ Thresholding ā€¢ Questions Inspector Contractor ā€¢ Verification ā€¢ Decomposition ā€¢ Due Diligence ā€¢ Orchestration RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 41
  • 41. So I was talking with a friendā€¦ He was bemoaning the pace of change and the speed at which software was being pushed to productionā€¦ In essence, management has made the decision that getting their app out the door with possible bugs is more valuable to the business then having strong assurance that the software has few or no significant bugs. Youā€™ve got to up your game, get automated, agile and get on pace with your developers. RACKSPACEĀ® HOSTING | WWW.RACKSPACE.COM 42
  • 42. ANY QUESTIONS? RACKSPACEĀ® HOSTING | 5000 WALZEM ROAD | SAN ANTONIO, TX 78218 US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM RACKSPACEĀ® HOSTING | Ā© RACKSPACE US, INC. | RACKSPACEĀ® AND FANATICAL SUPPORTĀ® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN THE UNITED STATES AND OTHER COUNTRIES. | WWW.RACKSPACE.COM

Hinweis der Redaktion

  1. Rackspace HostingOur clients include more than 40% of the FortuneĀ® 100. Today we have more than 150,000 customers in 120 countries.One of the achievements that we are most proud of is that Rackspace Hosting has been recognized by Fortune as one of the 100 best places to work not only in the United States, but in EMEA as well. People really like working here. What that means to customers is that we have a growing, stable workforce that is carefully selected not only for technical skills but also forhow much each employee enjoys delivering exceptional service, and how well they match our culture and core values.OURCULTURE AND THE EXCEPTIONAL SERVICE THATWE BRAND AS FANATICAL SUPPORT MAKE THE DIFFERENCE BETWEEN GROWING AT, SAY, 5% A YEAR AND GROWING AT THE MUCH FASTER RATE THAT OUR COMPANY HAS EXPERIENCED IN THE LAST FEW YEARSFor the quarter ended June 30, 2011:Ā Net revenue of $247.2 million grew 32% year-over-year and 7.5% from Q1 2011Adjusted EBITDA (1) of $81.6 million grew 31% year-over-year and 7.5% from Q1 2011Net income of $17.6 million grew 57% year-over-year and 27% from Q1 2011Total server count increased to 74,028, up from 70,473 servers at the end of the previous quarter, and total customers increased to 152,578, up from 142,441 at the end of the previous quarter.Adjusted EBITDA for the quarter was $81.6 million, a 7.5% increase compared to the first quarter of 2011 and a 31% increase compared to the second quarter of 2010. The adjusted EBITDA margin for the quarter was 33.0% compared to 33.0% for the previous quarter and 33.2% for the second quarter of 2010. Adjusted EBITDA and adjusted EBITDA margin were negatively impacted by a non-cash charge of $2.8 million for the quarter relating to data center operating leases.Net income was $17.6 million for the quarter, up 27.1% from the previous quarter and 56.8% from the second quarter of 2010. Net income margin for the quarter was 7.1% compared to 6.0% for the previous quarter and 6.0% in the second quarter of 2010.Cash flow from operating activities was $79 million for the second quarter of 2011. Capital expenditures were $95 million, including $49 million for purchases of customer gear, $17 million for data center build outs, $14 million for office build outs and $15 million for capitalized software and other projects. Adjusted free cash flow (1) for the quarter was $(18) million. At the end of the second quarter of 2011, cash and cash equivalents were $132 million. Debt obligations totaled $139 million, consisting of $137 million related to capital leases and $2 million related to current and non-current debt. On a worldwide basis, Rackspace employed 3,712 Rackers as of June 30, 2011, up from 3,492 Rackers as of March 31, 2011 and 3,002 Rackers as of June 30, 2010. Rackspace Developments and Business HighlightsGrowing Momentum for OpenStack: With over 90 participating companies, the project continues to see major traction including its most recent code release, Cactus Code, accompanied by the Cactus Design Summit/OpenStack Conference in Santa Clara, CA, with over 500 attendees, 133 participating organizations and 217 developers. This event was followed by the announcement of Citrixā€™s Project Olympus, a new cloud infrastructure product based on OpenStack, which is designed to allow enterprises to quickly build and deploy OpenStack based clouds. Last month, we also began to see major traction of OpenStack in Europe. We held an OpenStack Day in London ā€” the first for our community in Europe and had over 350 people in attendance. Ā Dominoā€™s Pizza Group chooses Rackspace: To help drive revenue and future growth, pizza delivery expert Dominoā€™s Pizza Group has selected Rackspace to provide them with RackConnect, an integrated cloud hosting and dedicated managed hosting service. The service will give Dominoā€™s a scalable and cost-effective platform that will support the execution of the companyā€™s ambitious growth strategy and meet the evolving demands of its online business. Dominoā€™s sought a hosting service that would meet the evolving demands of its online business, and allow its internal IT team to focus less on the maintenance of its online properties and business applications, and more on innovation.Launch of Hosted Virtual Desktop: In May, Rackspace announced the availability of Rackspace Hosted Virtual Desktop. The hosted virtual desktop platform utilizes Rackspaceā€™s comprehensive hosting services and may be paired with industry leading desktop virtualization solutions from Citrix and other joint channel partners. The offering enables customers to host their virtual desktops on their choice of dedicated and/or cloud solutions.Continued European Cloud Growth: Since its launch in January, Rackspaceā€™s UK cloud has been steadily growing and now has over 5,000 customers. To help meet this demand, the UK added new cloud services including Cloud Servers with managed service level and Cloud Load Balancers. The new UK offerings build upon Rackspaceā€™s existing portfolio and are already Some other interesting facts:85% Increase in Cloud Revenue46% Increase in Fortune 100 Customers20% Increase in Number of Servers400% Increase in Number of Hybrid Customer Solutions24% Increase in Number of Rackers28.6% Increase in Y/Y Revenue.0008% Average Customer Churn3X Server Utilization of Average Enterprise IT OrganizationLargest Customer Equals Less Than 1% Revenue
  2. VisionEveryone at Rackspace can tell you our vision, a vision that we all support to become the worldā€™s greatest service company. Our senior leadership is passionate about this. We refuse to accept mediocre. Once you accept less than great, you become ā€œa phone company.ā€ And, when was the last time you got great service from your mobile carrier or home phone company?PAUSEBUT, YOU CANNOT JUST HAVE A VISION TOOā€¦
  3. One Control Panel Future:Next generation tools to make our customersā€™ lives easier. Next generation tools for Rackers to deliver Fanatical Support Unification and integrated products where it makes sense Design driven, looks and works great for all users Cornerstone for all customer interaction Compelling technology
  4. VisionEveryone at Rackspace can tell you our vision, a vision that we all support to become the worldā€™s greatest service company. Our senior leadership is passionate about this. We refuse to accept mediocre. Once you accept less than great, you become ā€œa phone company.ā€ And, when was the last time you got great service from your mobile carrier or home phone company?PAUSEBUT, YOU CANNOT JUST HAVE A VISION TOOā€¦