Rackspace has been on a roll launching new products in the past few weeks, including introducing its new cloud control panel

Rackspace Net Revenue Reaches $319M in Q2, Hints at More Cloud Product Launches Soon

Add Your Comments

Cloud hosting provider Rackspace announced its Q2 2012 financial results in an earnings call on Tuesday afternoon.

Rackspace net revenue for the second quarter ending on June 30, 2012 was $319 million, a 5.9 percent increase from Q1 2012, and a 29 percent increase from Q2 2011.

This financial news comes as Rackspace has overhauled its image to align with its recent announcements around OpenStack. On Tuesday, Rackspace unveiled its new tagline, “The Open Cloud Company” to reflect its new direction. After co-founding OpenStack in 2010, Rackspace has fully embraced the open source cloud platform and is banking on demand for cloud solutions that eliminate vendor-lock in to grow revenues.

“Our strategy is to leverage the OpenStack technology to create a cloud operating system that can run anywhere, one that will give freedom and choice to customers and drive unconstrained innovation,” Rackspace CEO Lanham Napier is quoted as saying in the earnings call transcript. “We will adopt this powerful software system, integrate it with modern infrastructure, combine it with passionate and knowledgeable Rackers, and back it up with service level agreements, all to deliver world-class technology outcomes to our customers.”

Napier says that Rackspace has made good progress on its development goals this year, and expects to be “largely through the product launches soon.” Some of Rackspace’s product announcements in recent weeks include the generalĀ  availability of its Cloud Databases service. Last week, Rackspace blogged about its new control panel, and at the end of July, it added FreeBSD 9, CentOS 6.3 support to its cloud servers.

Karl Pichler, Rackspace CFO, tells investors to keep their eyes open for “more product announcements in the coming weeks.”

In the earnings call, Rackspace says its total server count increased to 84,978 up from 82,438 servers at the end of the previous quarter. Rackspace has 190,958 customers now, an increase of 10,092 customers since Q1 2012.

Net income was $25 million in Q2 2012, an 11.1 percent increase compared to Q1 2012, and a 37 percent increase from Q2 2011.

Rackspace employed 4,528 Rackers as of June 30, 2012, up from 4,335 in the previous quarter, according to the press release.

Talk back: What kind of announcements around its Open Cloud do you think Rackspace has up its sleeve? How do you think OpenStack will help with Rackspace’s bottom line? Let us know in a comment.

Add Your Comments

  • (will not be published)