Rackspace Hosting Inc.'s cloud computing revenue nearly doubled from 2009 to 2010. That, plus strong channel expansion, helped give Rackspace an impressive second quarter.
According to San Antonio-based Rackspace, cloud computing revenue rose to $23.2 million in the second quarter, up from the $13.1 million in the same quarter one year before and an increase from the $19.3 million in the first quarter of this year.
Rackspace's cloud-fueled quarter comes on the heels of its launch of the OpenStack Project, an open source cloud computing platform to drive standards and interoperability in cloud computing and through which Rackspace opens the core code to its Cloud Files and Cloud Services offerings.
The second quarter success also comes as Rackspace continues to gain traction with its channel partners. During the second quarter, the company continued to build up its channel program by signing a distribution deal with Ingram Micro, which will offer Rackspace's cloud computing and managed hosting offerings through the Seismic Cloud Conduit Program. Rackspace's channel push also comes after the first quarter launch of its official cloud computing partner program.
Overall, Rackspace's second quarter revenue was $187.3 million, which was up 4.8 percent from the first quarter and up 23.2 percent from the second quarter of 2009. Profit also increased, jumping 60 percent to $11.2 million, or 8 cents per share, compared to a profit of roughly $7 million, or 6 cents per share, in the quarter one year earlier.
Along with cloud computing fueling Rackspace's strong quarter, the company also saw hosting revenue for the quarter jump to $164.1 million, up from $159.5 million in the first quarter.
Additionally, Rackspace increased its total server count, which rose to 61,874 from 59,876 servers in the previous quarter and its total customers shot to 108,023, up from 99,446 in the first quarter.