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Rackspace Hits 100,000 Customers, 80 Percent Are Cloud Customers (datacenterknowledge.com)
14 points by 1SockChuck on May 4, 2010 | hide | past | favorite | 9 comments



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.


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


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.


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


Top right corner


Looks like buying slicehost has been good for them.


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


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


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




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