Rackspace wins large contract to host SA `virtual horse racing` breakthrough

Rackspace, the international managed hosting specialist, has won a large Web service hosting contract from Kiron Interactive, a South African-based software development company that has stolen a virtual march on the traditional technology countries by developing and licensing online virtual horse racing services on a global basis.

The contract is the largest South African order yet for Rackspace, which now provides managed hosting services to a total of 30 local companies.

Availability is critical for Kiron Interactive`s virtual horse racing products hosted at Rackspace. They include the Raceclubs virtual horse racing community, which is marketed in the UK and Europe. The underlying software platform on which Raceclubs operates, gave rise to the world`s first virtual horseracing community. This is almost identical to the real world of horse racing with owners, trainers and race structures including Maiden Plates right through to the flagship Championship feature races, all carrying prize money.

Steven Spartinos, sales and marketing director at Kiron Interactive, said the virtual racing industry in the UK alone is estimated to be worth up to lb500 million pounds annually and online gaming overall, some lb4 billion.

"Our application is absolutely mission-critical. By the very nature of the service we are offering, we have to be live on the Web 24 hours a day, seven days a week, 52 weeks of the year."

Kiron Interactive began to search for a unique managed hosting solution and Rackspace came up with a completely outsourced, totally managed solution. "They gave us guarantees on uptime, a leasing arrangement to take care of the hardware, a highly committed service level agreement, very narrow response windows and serious commitment to very tight turnarounds - exactly what we needed to provide the solid, reliable base demanded by our business," said Spartinos.

He added that the Rackspace differentiation was also clearly evident in the high standard of equipment and hosting infrastructure, excellent reaction time and huge commitment to service and support. "Their Fanatical Support philosophy is exactly that - fanatical."

Rackspace spokesman for the South African market, Geoff Dowell, said South Africa has an impressive record of development, entrepreneurship and success in software and Web technology business ventures, many of which have made an impact internationally.

"Kiron Interactive is one of these ventures and it demands managed hosting services of exceptional quality and reliability. It is this kind of innovation and entrepreneurship that marks South Africa as an important growth market for us."

People as individuals or in syndicates, families or partnerships are able to buy and own virtual horses, train them, enter the horses in appropriate virtual races and win prize money on the Kiron virtual horse racing sites. Total stakes won amount to more than lb2.2 million on the Raceclubs community, the top individual owner has won lb128 000 and a successful horse was recently auctioned to a new owner for more than lb1 500.

A "barrier horse" acts as a benchmark for all horses being "trained" by owners on the site. Through this they can measure the improving ability of their horse to compete over a variety of distances under varying conditions. The horse can therefore be entered selectively to compete in races where the distances and the conditions or "going" are best suited to it so that its chances of winning are enhanced.

Spartinos said the emphasis is on keeping the whole experience positive and therefore doping plays no role and injuries to horses are also excluded. "Other than that, it simulates very accurately the typical real horse racing environment and tradition, for example, the new owner of a horse will also get to select the silks or colours that will identify the horse.

"Random elements are built into the software that will influence each and every virtual race that is run and a wide range of factors are considered in establishing race results. Virtual race cards and form books are also provided. The software was developed with significant input from the South African horse racing fraternity and the idea was originally conceived by a highly experienced trainer. The experience is therefore as close to the real thing as possible in every respect."

Kiron Interactive has agreements with licensed bookmakers, including Ladbrokes and the UK Betting Group, who have taken on branded versions of the product. Participants in Raceclubs can place bets on their horses or other horses in virtual races through these bookmakers.