International managed hosting services provider, Rackspace Managed Hosting, which has a client base that includes 30 South African companies, has announced third quarter 2005 revenue growth of 48% and net income growth of 123% over the same period last year.
Revenue at end September reached US $150 million (R975 million). Formed seven years ago, Rackspace has experienced 27 consecutive quarters of revenue growth.
The company won numerous new customers during the third quarter, including enterprises such as online magazine Slate and Alpine Electronics of North America, Inc. It was recently selected Hosting Service Provider of the Year by Microsoft for the second time and the Linux Journal magazine named Rackspace a Reader`s Choice for the third consecutive year.
Among the major customers of Rackspace in South Africa are Kiron Interactive, a local software development company that develops and licenses online virtual horse racing services on a global basis; ITWeb, the online ICT industry news service; and Striata, which provides electronic bill presentation and payment (EBPP) and multi-channel messaging software solutions to leading financial institutions.
Rackspace also announced a move to measure its performance by Economic Value Added, a tool developed by Stern Stewart & Co that measures the difference between the cost and return on capital. Rackspace started to measure its EVA to enhance cash flow and improve utilisation of assets in order to invest more in new products, facilities and programs. EVA encourages employees at every level to think like owners and work every day to improve the business.
"Our growth in 2005 has been outstanding and the momentum continues as we closed September with a $150 million revenue run rate," said Lanham Napier, president of Rackspace Managed Hosting. "The addition of EVA as a measurement tool will help us create additional value for our customers, employees and stakeholders."
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Rackspace Managed Hosting is the fastest-growing hosting specialist. An international organisation, it offers the world`s only self-healing network, delivering 100% network availability. A wide range of managed hosting solutions and services for business revenue critical enterprise hosting platforms is offered. The company has received numerous awards for its "Fanatical Support" brand of customer service. In South Africa, Rackspace provides managed hosting services to 30 companies.
For more information please visit www.rackspace.co.za
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