

Rackspace Hits 100,000 Customers, 80 Percent Are Cloud Customers  - 1SockChuck
http://www.datacenterknowledge.com/archives/2010/05/04/rackspace-hits-100000-customers/

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danfitch
The cost reduction going from dedicated to cloud can be enormous on the order
of $30,000 a month down to $5,000(for us + restructuring our architecture).
But this idea of 100,000 customers not exactly great because many of them
might all be $15.00 a month clients, which is not the same as their previous
clients.

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sadiq
Did the cost reductions come from your server usage varying over time,
allowing you to scale up/down?

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danfitch
Servers remain up the entire time we just have less cost from dedicated
machines that were being wasted. They were more power than needed and we
consolidated the architecture, and their cloud servers are much less
expensive.

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bcl
Too bad the article has a flash ad covering up the text with no close button.
:/

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mr_justin
Top right corner

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epochwolf
Looks like buying slicehost has been good for them.

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eli
The average cloud customer probably pays less than 5% of the average dedicated
customer. But, yeah, it seems like a good buy.

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lsc
I don't know about rackspace prices, but generally speaking, the margin on VPS
or "cloud" services is much higher than on dedicated servers.

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ohashi
I don't think you've used Rackspace before then :)

