1. Cloud Computing John Engates CTO, Rackspace Presented: Rackspace Customer Conference, 2008 October 29, 2008

2. Safe Harbor Statement This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations or product and service offerings; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, and any statements of assumptions underlying any of the items mentioned. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: the unpredictable nature of our rapidly evolving market and quarterly fluctuations in our business; the effects of competition; changes in the economy, technological and competitive factors, regulatory factors, and other risks that are described in our report on Form 10-Q for the quarter ended June 30, 2008, filed with the SEC on September 10, 2008. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. 2

3. Quiz S3

4. EC2

5. Bonus… SSDS

6. What will IT look like in 5-10 years? `

7. What does IT look like today?

8. Data Centers Servers Storage Firewalls Network Gear Virtualization Operating Systems Databases Application Servers Code The Stuff

9. Deployment Change Management Security Patching Monitoring Backup Maintenance Break-Fix Help Desk SLAs Compliance The Things you have to do with the Stuff

11. What’s next?

12. “The bulk of business computing will shift out of private data centers to the ‘cloud’.” - Nicholas Carr 12

13. Cloud Where did this term come from?

15. Cloud Computing Definition According to Gartner: Cloud computing is a “style of computing where massively scalable IT-related capabilities are provided ‘as a service’ across the Internet to multiple external customers.”

16. A few defining characteristics of Cloud IT infrastructure, a web service, or an application delivered as a service Accessible via the Internet Utility pricing (pay for what you use) Multi-tenant Scales automatically to adjust for demand* * Sometimes this is up to you to do

17. So what…

18. Why cloud computing? Why now?

19. We Have Problems…

21. Scaling the old fashioned way doesn’t work

22. Bigger, newer data centers are more efficient

23. Internet-Scale Architectures

24. We Have Better Tools

25. Services Hosted Platforms Centralized datacenters Distributed computing Scalable architectures Simple – Reliable – Fast Energy Efficient Relatively Cheap Our Future is Cloudy! "Any sufficiently advanced technology is indistinguishable from magic.“ --Arthur C. Clarke, “Profiles of the Future”

26. Categories of Cloud Computing 1.Application Clouds (SaaS) 2.Platform Clouds (PaaS) 3.Infrastructure Clouds (IaaS)

27. Application Clouds (SaaS) Ease of Use –Low Complexity Flexibility –Minimal Control Typical Consumers –End Users Examples –Mail Trust –Salesforce.com –TurboTax Online –Microsoft Online Services 27

28. Platform Clouds (PaaS) Ease of Use –Medium Complexity Flexibility –Medium Control Typical Consumers –Developers Examples –Rackspace/Mosso Hosting Cloud –Google AppEngine –Force.com 28

29. Infrastructure Clouds (IaaS) Ease of Use –High Complexity Flexibility –Maximum Control Typical Consumers –Developers –System Administrators Examples –Rackspace/Mosso Cloud Files –EC2, S3 –Microsoft SSDS –FlexiScale –GoGrid 29

30. Who has a Cloud…? Rackspace! Amazon Web Services Google Salesforce.com Microsoft GoGrid Flexiscale Lots of others…

31. Should I be using the cloud? That depends…

32. Reasons to use the Cloud Low barrier to entry Rapid time to market Scale up – scale down Pay as you grow More scalable More reliable? Cheaper? 32

33. What are the barriers to adoption of Cloud? Security Speed of light Customization Control Applications not architected for cloud Immaturity Skills required Pricing model / cost / relationship 33

34. How is running a cloud different than traditional IT? Larger scale Shared Commodity servers DC design Distributed software High expectations 34

35. 35 Rackspace in the Cloud

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39. Cloud Sites 39

40. Cloud Files 40

41. Cloud Servers 41

42. My Predictions The era of the IT closet or 5k sq. ft. data center is almost over If you still have a data center, you’ll eventually have a cloud in it The next generation of OSS and commercial software will look more cloudy Cloud standards will emerge over the next two years Your apps will eventually run seamlessly across internal and external (private and public) cloud resources Server virtualization won’t matter You’ll still have IT problems! 42

43. What next? Everyone will have and/or use a cloud Clouds will specialize Tools are evolving making it easier to use Service levels will get better Prices will stabilize Software will adapt to the cloud 43

44. http://cloud.rackspace.com 44

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