Measuring Key Cloud Metrics for Rackspace

Rackspace Hosting, according to Data Center Knowledge, has been the most forthcoming among cloud computing providers in disclosing details of its operations. Recently the company suggested that revenue per server was a good metric for assessing the value of its growing cloud computing business.

---

When it comes to the economics of cloud computing, Rackspace suggests 'revenue per server' is the best metric.

"'We can put a lot of cloud customers on a piece of hardware, where that same piece of equipment may only be able to hold one managed customer,' he [Rackspace CFO and treasurer Bruce Knooihuizen] added. A single managed hosting customer, on the other hand, may require many dedicated servers. The cloud computing operation also gives Rackspace the ability to reuse servers from its managed hosting operation, extending their live by incorporating them into a cloud cluster.

"Rackspace provides an interesting study in the economics of Rackspace's cloud computing because it breaks out data on its cloud computing and managed hosting customers, which shows that Rackspace makes far less on each cloud customer than it does for its managed hosting clients."

Read the Full Story at Data Center Knowledge