Encoding.com Chooses The Rackspace Cloud for Faster Cloud Hosting

Encoding.com Makes the Move to Deliver Accelerated Video Encoding without Increasing Its Costs

SAN ANTONIO – January 12, 2010 – The Rackspace® Cloud, the cloud computing division of Rackspace Hosting (NYSE:RAX), today announced that Encoding.com, the popular Internet-based video encoding provider, now relies on Cloud Servers, Rackspace’s enterprise-class IaaS offering, to support its rapidly growing computing and hosting needs.  Using the power of Cloud Servers, Encoding.com expects to increase the average speed at which it can deliver studio-quality video encoding services to its users by more than two-fold without incurring more hosting costs.

Launched in September 2008, Encoding.com was one of the first companies to introduce a cloud-based, Software-as-a-Service (SaaS) solution for video encoding.  Encoding.com’s business model is to provide guaranteed turn-around times for encoding services at a fraction of the cost of in-house encoding.  The company is said to have encoded more than three and a half million videos to date including a recent peak of 100,000 videos in just one weekend.  Using this on-demand approach to high quality video encoding has driven the company’s growth and attracted noted customers such as MTV Networks, CarDomain and Brightcove.

“We offer a studio-class service at industry-leading encoding speeds with guaranteed service level agreements.  We need a cloud solution that is powerful, dynamic and stable,” said Jeff Malkin, chief operating officer, Encoding.com.  “With their Fanatical Support, rapid response and personal attention, The Rackspace Cloud helps us focus on what we know best – video encoding.”

Each Cloud Server comes with a specific amount of guaranteed CPU power.  However, Cloud Servers customers can take advantage of extra processing power – at no additional cost – if and when the host machines are below their peak load.  This unique “CPU bursting” capability of Cloud Servers can result in two significant benefits for Encoding: 1) faster service for their customers, and 2) reduced computing costs because of their ability to consume more processing power during peak times without incurring an additional fee.

The Disk and CPU efficiency of the two leading IaaS cloud computing platforms were recently analyzed through research commissioned by Rackspace and conducted by The Bitsource, a technology research lab.  The results of The Bitsource analysis highlight important advantages of utilizing Cloud Servers from The Rackspace Cloud.

The performance, ease of use, and reliability of The Rackspace Cloud helps Encoding.com to meet its SLA commitments (such as never letting a video sit in a queue for more than four minutes).  With the flexibility that Cloud Servers offers to burst, companies like Encoding.com are more able to deliver an improved experience to their customers without increasing costs.

“We are finding that customers are not choosing us for performance alone,” said Emil Sayegh, general manager, The Rackspace Cloud.  “A broad range of companies – from innovative start-ups like Encoding.com to large enterprises – are choosing The Rackspace Cloud because of our comprehensive, worry-free approach to cloud computing so that customers can focus on what they do best.  We take great care to help our customers with their total hosting experience which starts with our human touch known as Fanatical Support, and extends to optimal system performance, uptime, and ease of use.”

About Encoding.com

Encoding.com is the leading global provider of studio-class video services for websites offering user-generated and premium video, delivering over 3.5 million encoded videos.  Encoding.com makes transcoding video into all popular formats easy, cost-effective and instantly scalable for global enterprises and SMBs.  As the first and only encoding service offering service level agreements, Encoding.com removes the necessity for its customers to make heavy investments in expensive hardware / software solutions and overhead required to manage high-volume video transcoding needs and backs it with a wait-time service level guarantee.  In 2008, the start-up was named one of seven finalists for the AWS Start-Up Challenge. This Software-as-a-Service (SaaS) business is based in Denver, Colorado and San Francisco, California. For more information about Encoding.com, visit http://www.Encoding.com.

About The Rackspace Cloud
The Rackspace Cloud provides on-demand scalable website, application, and storage hosting backed by Fanatical Support®.  Through its suite of cloud solutions, Cloud Sites™, Cloud Files™ and Cloud Servers™, The Rackspace Cloud enables astute developers and IT managers to minimize the hassles, upfront investments, and high costs associated with dedicated hardware while offering the ability to easily scale hosting resources. For more information about The Rackspace Cloud, visit www.rackspacecloud.com or call 1-877-934-0409.

About Rackspace Hosting
Rackspace Hosting is the world’s leader in hosting and cloud computing and is ranked #43 on  FORTUNE Magazine’s 100 Best Companies to work for in the United States for 2009.  Rackspace provides its customers with Fanatical Support ® in delivering their portfolio of hosted IT services, including Managed Hosting, Cloud Computing and Email and Apps.  For more information, visit www.rackspace.com.

Forward Looking Statements
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 (i) related to the research conducted by The Bitsource concerning expected development, performance or operational results related to any particular customer or customers of our customers associated with our hosting solutions; any other statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the possibility that benefits from our Cloud Hosting products  may not materialize, due to a number of reasons including issues relating to the performance of a customer’s configuration caused by forces outside of the control of Rackspace; changes in the economy, technological and competitive factors, regulatory factors, and  and other risks that are described in Rackspace Hosting’s Form 10-Q for the quarter ended September 30, 2009, filed with the SEC on November 13, 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.

Editorial Contacts:
Krisana Puccio, Marketing Manager
The Rackspace Cloud

Before leaving in 2016, Angela ran integrated marketing campaigns for Rackspace. She started in 2003 and did everything from Linux support, account management, sales, product marketing and marketing. She left Rackspace in 2005 to work for PEER 1 Hosting but returned in 2009 because she was interested in the cloud computing movement. Angela is a strong believer in the power of storytelling.


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