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  1. #1
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    How the heck are they in business? Rackspace..

    How the heck does Rack Space stay in business, or rather how the heck do people afford those prices?


    Why do they pay that much?

  2. #2
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    They target corporate customers, and apparently have a variety of experts on staff. Big businesses like to deal with big businesses.

  3. #3
    You'd be surprised what people are willing to pay for a reputable brand.

  4. #4
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    Quote Originally Posted by gordonrp View Post
    They target corporate customers, and apparently have a variety of experts on staff. Big businesses like to deal with big businesses.
    That pretty much sums it up.

  5. #5
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    there are far better providers that are far better reliability for much lower prices.
    Something awesome
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  6. #6
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    Quote Originally Posted by ninkynonk View Post
    there are far better providers that are far better reliability for much lower prices.
    Perhaps, but if they're not well known, big companies will still choose the well-known brand.
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  7. #7
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    And how are they still selling those Ferraries and Porches these days - they are so expensive... There are much better and more reliable cars for lower prices...

  8. #8
    Rackspace and datapipe business model is to target enterprise and big corporates only.

  9. #9
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    Plus their a public company so they have a lot of funds both Private & Public to stay around for a long time.
    DedicatedNode, LLC - Making Web Hosting Great Again!

  10. #10
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    Quote Originally Posted by gordonrp View Post
    They target corporate customers, and apparently have a variety of experts on staff. Big businesses like to deal with big businesses.
    Amen. And why? Because a budget MUST be spent in full or that budget will be reduced the next year.

    If your boss came up to you with $50,000 and said go get us a car. You spend $10,000 and save the company $40,000. Well, next year you just got yourself a total budget of $10k

    Learned that one ordering 40"+ Plasma screens through IBM back in the day. The College I was helping setup was going to use them for powerpoint presentations rotating in the computer lab... lol.

  11. #11
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    They're good at brand management. From what I've read on WHT, their hardware is not at par with industry standards but over time, they've become the go-to host for any big web project.

    Much better deals out there. Example, voxel.net really impressed me. Vps.net has really fast servers. But by default users end up visiting rackspace for hosting needs even if they eventually settle for someone else.

    In a way, rackspace is to hosting what godaddy is to domain, as far as the reputation goes, not the price

  12. #12
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    Same with ServerCentral - they dont even bother posting here; and are doing great.

  13. #13
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    I looked at going with Rackspace about 3 years ago. At the time all my dedicated stuff was with theplanet. The rackspace rep told me theplanet was their biggest competitor. I thought that was strange after I got the quote and it was literally double what I was paying.

    The two aren't apples to apples, yet they seemed to be direct competitors. I guess at the end of the day, they are both providing a commodity in two different ways.

  14. #14
    Quote Originally Posted by bluemer View Post
    How the heck does Rack Space stay in business, or rather how the heck do people afford those prices?


    Why do they pay that much?
    Because intelligent people understand that nothing is more expensive than trying to save a buck.

  15. #15
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    Quote Originally Posted by AHFB HTML View Post
    Because intelligent people understand that nothing is more expensive than trying to save a buck.
    Very well said!!
    I support the Human Rights Campaign!
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  16. #16
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    Quote Originally Posted by rds100 View Post
    And how are they still selling those Ferraries and Porches these days - they are so expensive... There are much better and more reliable cars for lower prices...
    No way, It's the opposite. The technology in a Ferrari & Lambo vs any other sports car justifies it's price. Supply and demand comes into play also (these are hand built machines) with limited sold. Exception would be the Nissan GTR which is up there to a ferrari.

    Heck the Chevy Corvette still has leaf springs! Horse buggys had those...

    In the hosting industry there is TONS of supply. If a new company popped up tomorrow with some "expert" and put astronomical prices on their website they would attract those companies with the million dollar budgets. All you need is some contacts.

    To the average "large" company who's execs have no clue about this business will ask the question "Why is Rackspace so much more?" to which they will most likely assume better service, more knowledgable staff and reputation...

    Any company could target that market, but you need to align yourself to do so.

    IMO of course!
    █ Pentester & IT Security Consultant

  17. #17
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    Quote Originally Posted by AHFB HTML View Post
    Because intelligent people understand that nothing is more expensive than trying to save a buck.
    Perfect!
    You will only find out how good a provider is when the going gets tough

  18. #18
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    It's called a great sales and marketing team.
    Fast Serv Networks, LLC | AS29889 | DDOS Protected | Managed Cloud, Streaming, Dedicated Servers, Colo by-the-U
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  19. #19
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    Quote Originally Posted by FastServ View Post
    It's called a great sales and marketing team.
    I disagree it's called "second to none" service levels...
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  20. #20
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    Agreed. Their support is awesome!

  21. #21
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    Quote Originally Posted by SamBarrow View Post
    You'd be surprised what people are willing to pay for a reputable brand.
    Just like the old saying(s), "Nobody ever got fired buying [IBM || Cisco]."

    While Rackspace has a reputation for a sharp support team, not all customers would agree. We have one client in particular whose account was originally with another provider who got bought out by Rackspace. Our client's I.T. manager wants to dump Rackspace because his 600+ users are constantly complaining about slowness and downtime. He feels Rackspace is neglecting their account-- or at least has them on older/slower servers-- because they are paying way below Rackspace's normal rates. (his words, not mine) He's also said the speed/quality of service declined significantly when their account was transferred. But as long as Rackspace continues to honor the insanely low pricing that carried over from the previous host, he can't convince management to switch providers.

    Rackspace plays to the same market as Peak 10-- large accounts with large budgets looking for a fully managed solution, and are willing to pay for it.

  22. #22
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  23. #23
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    Quote Originally Posted by ninkynonk View Post
    This shows that some 12 year that didn't get his way signed up on WHT, created a post, and did their best to hurt a provider's reputation -- nothing more. If you believe what you read in the Washington Post everyday, I'd ask you to reconsider.. If you believe what you read on WHT all the time, I wouldn't bother asking you anything.


    There are also some clients, and I have been selling colo and dedicated for years now, that NO MATTER what you do, say, or offer them, they are going to find a reason to complain because you cannot bend the rules or offer them something that you can't offer your other 2.000 clients. These people do exist, and they are normally the ones that don't want to pay for quality service.
    Dan Buyer
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  24. #24
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    Quote Originally Posted by dbuyer0 View Post
    This shows that some 12 year that didn't get his way signed up on WHT, created a post, and did their best to hurt a provider's reputation -- nothing more. If you believe what you read in the Washington Post everyday, I'd ask you to reconsider.. If you believe what you read on WHT all the time, I wouldn't bother asking you anything.


    There are also some clients, and I have been selling colo and dedicated for years now, that NO MATTER what you do, say, or offer them, they are going to find a reason to complain because you cannot bend the rules or offer them something that you can't offer your other 2.000 clients. These people do exist, and they are normally the ones that don't want to pay for quality service.
    I guess I shouldn't have said that because this guy is going to be bashing me tomorrow with a newly created account... I apologize in advance.
    Dan Buyer
    InfoRelay - Connected, Protected, Perfected.
    Equinix LAX & DC, One Wilshire, Wilshire Annex, MPT, VE, 1275K, Reston Exchange, Reston Equinix, 60 Hudson, NYC, and Chicago
    www.inforelay.com

  25. #25
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    umm many people in the same thread had issues with speed of service on rackspace. Even one of the mods here.

    That post on WHT that I linked to it NOT MINE!

    I'm not just bashing them. Thier issues are very widely known. They even lost the tumblr blogging service. tumblr had lots of issues with them.
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