(MyHostNews.com) Rackspace®, a leading provider of hosted IT services, announced today the company has been ranked 32 on FORTUNE’S 11th annual “100 Best Companies to Work For” list.  As a first-time applicant for the award, Rackspace was honored among more than 400 entrants nation-wide for the company’s dedication to employee recognition, empowerment, communication, and development and training.

“At Rackspace, we consider ourselves a service business, delivering what we call Fanatical Support® to more than 15,000 businesses worldwide. Fanatical Support starts with talented, engaged Rackers who are eager to serve,” said Lanham Napier, president and CEO, Rackspace.  “We are proud of the company we’re building together and our culture that powers Fanatical Support. This recognition from FORTUNE magazine reassures us that we’re creating a company that brings out the best in people.”

A driving factor for the list this year is that these companies excel in creating jobs. With a worldwide workforce of 2,000 employees, or “Rackers”, Rackspace created more than 500 jobs in the U.S. in 2007.  Overall, the 100 companies on the 2008 list added 67,000 employees to their payrolls in the past year and employ a total of nearly 1.6 million employees; up 16% from the number employed by companies comprising last year’s list.

Rackspace has created a unique culture built around Fanatical Support that is a vital part of the company’s success. At the heart of that culture are six core values:
- Fanatical Support in all that we do
- Results first: Substance over flash
- Passion for our work
- Keep our promises
- Embrace change for excellence
- Treat fellow Rackers like friends and family

Notable perks for working at Rackspace include open communication with executives all the way up to the CEO.  Executives hold bi-monthly Open Book and Town Hall meetings to discuss company results, news, product updates, new hires and more.  Rackspace invests heavily in the professional and personal development of Rackers through its internal training department, Rackspace University.  Employees have access to more than $3,000 in training funds each year, beginning on the first day on the job.  Executives also recognize Rackers for work well done through quarterly celebrations for meeting company-wide goals, awards like the coveted Straightjacket Award and through one-off gifts such as keys to the Rackspace BMW, also known as the “Rackermobile”.  Rackspace also invests heavily in its community through the Rack Gives Back committee.  In 2007, Rack Gives Back provided aid to 30 non-profit organizations, volunteering nearly 2,000 hours to help paint, build computer labs, plant community gardens and more.

Rackspace’s focus on Fanatical Support and a service culture has resulted in several national, state-wide and local accolades including The American Business Awards’ “Best Customer Service Organization”, HR Magazine’s “Best Small & Medium Companies to Work for in America”, Texas Monthly’s “Best Companies to Work for in Texas”, and San Antonio Business Journal’s “Best Companies to Work for in San Antonio.”  Rackspace Chairman Graham Weston received recognition in Fortune Small Business magazine as one of the “Best Bosses” in America. Rackspace is also being profiled by Harvard Business School for a video case study, which will be used across MBA and Executive Education programs, focusing on Rackspace’s unique business model, processes, culture and Fanatical Support, and how each of the four support the company’s agility and success.

To pick the “100 Best Companies to Work for”, FORTUNE works with Robert Levering and Milton Moskowitz of the Great Place to Work Institute to conduct the most extensive employee survey in corporate America. Of some 1,500 firms that were contacted, 406 companies participated in this year’s survey. Nearly 100,000 employees at those companies responded to a 57-question survey created by the Great Place to Work Institute, a global research and consulting firm with offices in 30 countries. Most of the company’s score (two-thirds) is based on the results of the survey, which is sent to a minimum of 400 randomly selected employees from each company. The survey asks questions related to their attitudes about the management’s credibility, job satisfaction and camaraderie. The other third of the scoring is based on the company’s responses to the Institute’s Culture Audit, which includes detailed questions about pay and benefit programs and a series of open-ended questions about hiring practices, methods of internal communications, training, recognition programs and diversity efforts, etc. After evaluations are completed, if news about a company comes to light that may significantly damage employees’ faith in management, that company may be excluded from the list.

Any company that is at least seven years old with more the 1,000 U.S. employees is eligible.  The deadline for applying for next year’s list is March 31, 2008. For an online nomination form, go to www.greatplacetowork.com. The full list and related stories appear in the February 4 issue of FORTUNE, available on newsstands January 28 and at www.fortune.com on January 22.

About Rackspace
A recognized leader in the global IT marketplace, Rackspace® delivers a diverse suite of enterprise-class hosted IT services to businesses of all sizes. Customers choose Rackspace for its hosting specialization and expertise, backed by the company’s award-winning Fanatical Support®. By integrating the industry’s best technologies and delivering them as services, Rackspace serves as an extension of its customers’ IT departments. Because Rackspace removes the burden of infrastructure maintenance and management, customers can focus on their core business.  Rackspace’s portfolio of companies also includes the Mosso® (www.mosso.com) cloud computing platform and Mailtrust™ (www.mailtrust.com) a provider of business-class hosted email solutions. For more information on Rackspace, please visit www.rackspace.com, or call 800-961-2888.

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