Everyone is getting educated about cloud computing. Many businesses are implementing, but if your firm wants to explore the options that do not require a wholesale replacement, this session is for you. A recent McKinsey study evaluated cloud as an all or nothing consideration, which it supported with data from a mega firm with a 1,700-person IT staff doing a wholesale migration. At the Gartner ITxpo on 10.21.09, this presentation by Andy Schroepfer, Rackspace VP of Strategy, addresses control, reliability and security concerns and discusses cloud options and detail how a hybrid hosting strategy (mix of cloud and managed hosting) can solve unique IT business issues. 

1. Date: October 2009 TOE IN THE CLOUD: How Businesses Can Leverage Cloud Computing Today Presented by: Andy Schroepfer VP Strategy, Rackspace Hosting

2. Forward-Looking Statements / 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 data center operations at the new facility, operational and financial results, long term investment strategies, growth plans including international expansion plans, expected results from the integration of technologies, the performance or market share relating to products and services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include infrastructure failures, including failures at the new data center, the continuation of the current difficult economic conditions or further negative fluctuations, the effectiveness of managing company growth, technological and competitive factors, regulatory factors, and other risks that are described in Rackspace Hosting's Form 10-Q for the quarter ended March 31, 2009, filed with the SEC on May 12, 2009. 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. 2

3. 3 3 "The bulk of business computing will shift out of private data centers to the ‘cloud’." – Nicholas Carr

5. We can agree on the goal, but there are different ways to get there 18 NO MORE SERVERS.

6. Truly a New Era of Computing 70’s – 80’s Mainframe Era 90’s – 2000’s Client Server Era 2010 – beyond Cloud Era Centralization and scale drive “better, faster, cheaper” The old models aren’t gone, just less relevant Cloud Computing is about pooling

7. Pooling Lowers Costs 7 7 HR Benefits Savings of 30% at peak times Security Experts Network Experts On-Demand Infrastructure OS Experts Savings of 60% at slow times Management Software Managed Services Peak Server & Network Infrastructure Base Infrastructure Fixed costs vs. renting sliver of fixed costs Outsourcing has inventory of “compute” and “expertise”

8. Focus Where It Really Matters of IT organizations’ time is spent on updates, patching, and maintenance over 70% IT resources need to be placed efficiently You are being asked to do more with less

9. Cloud Hosting is a New Tool, Not a Panacea What / Where, not Yes / No Spark and empower innovation

10. 10 Standard Apps Ubiquitous Apps Custom Apps Managed Hosting Cloud Hosting SaaS STOP & THINK! Blogs Wikis Subversion Test/Dev Department sites ERP OSS Workflow Website Email Workspaces Chat IM A Computing Strategy is Key

11. Security Is A Red Herring Security concerns are not unique to Cloud Should always be a priority, regardless of solution

12. Time = Proof Hybrid Models Compliance evolution Key Drivers of Comfort

13. Change Is In The Air For The IT Department NO MORE SERVERS WORKLOAD STRATEGIES SOFTWARE DEVELOPMENT IT should embrace rather than fear the cloud Development critical to IT of the future

14. YOUR LOGO HERE NO MORE SERVERS

15. www.NoMoreServers.com andy.schroepfer@rackspace.com Twitter: @shrepfur