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The Daily Cloud: Rackspace reports cloud revenue up 12%

During its quarterly earnings call, Rackspace's CEO said the Amazon Web Services price cuts have not affected the company's position in the cloud.

All the cloud news that's fit to spin!

Head of Rackspace says cloud computing's a "huge opportunity"
Rackspace CEO Lanham Napier said in an earnings call this week that the hoster and cloud provider would pursue aggressive moves to grow its services business. He cited shifting expectations by enterprises for more diverse and full featured services and called cloud a "huge opportunity."

Napier said that Rackspace's Cloud Servers unit would bring in more revenue per buy for Rackspace. He also added that, despite price cuts (and at minimum one order of magnitude difference in revenue and resources) from Amazon Web Services, the Rackspace high-touch model was proving out.

"Amazon has cut its price, and their price move has not had any impact on our take rate, in our cloud," he said. "We're serving a different customer."

Quarterly financial statements from Rackspace (number two on our top 10 list of cloud providers) show the hoster continues to make hay while the sun shines on cloud computing and services overall. Rackspace's earning statements are greatly anticipated by the cloud punditry, as the company details customers and revenue in much greater specificity than retail giant Amazon. That feeds the ravenous appetites of pundits for inaccurate speculation and gross mischaracterizations of the industry.

Malicious anonymous ribbing aside, the figures are juicy and delicious for both market watchers and technical types. Rackspace hit 56,671 servers, adding 2,016 in the last quarter of 2009. It added 9,981 customers -- approximately five customers for each new server, which, if nothing else, is an extremely reasonable load for a virtual machine (VM) host.

Cloud revenue grew to $17.1 million from $15.3 million, part of $169 million in managed services revenue overall. Rackspace's revenue is up around 20% overall from last year.

newScale supports VMware's cloud API
In a mind-bending metaphysical feat, virtualization-free newScale has added vCloud API support to its automated iron cloud. newScale will now support API calls through vSphere and VMware machines into FrontOffice, its management toolset.

Ontologically speaking, it's a tough nut to crack. It's not that out of left field, however, as newScale's cloud customers typically use the firm's on-demand iron to host their own virtualized environments as hosters, Web services providers and so on.

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