HARDWARE DEPRECIATION PROBLEM

One of the most important items to consider when outsourcing

your hosting project is the associated cost of effectively and

efficiently maintaining it and the risks associated with not being

able to do this properly. In a colocated environment, a company

must take steps to ensure that an exceptional disaster recovery

solution in place in the event of equipment failure. For a truly

robust disaster recovery solution, a company must have, at a

minimum, a warm spare for every component in the

configuration on hand. You must also plan to have on-call

Level-3 technicians ready to diagnose and address the problem.

When and if disaster should happen, these additional payroll,

hardware and opportunity costs can quickly shatter any

planned revenue goals.

OVERALL MAINTENANCE PROBLEM

In the server component market, the rate at which equipment

depreciates is predicated on the rate that technological

advancements increase. This fact continues to plague many

companies that have implemented a colocated solution. Whether it

is advancements in faster chip sets, SCSI drives or network

upgrades, keeping up with the demands of a growing online

presence can mean planning and paying for systematic technology

refreshes. This necessity causes an additional capital outlay, adding

to the ongoing costs of running your online business.

Although the thought of colocating can seem like a stable, longterm solution, the costs associated with implementing it can

quickly compromise a company's budgeted capital expenditures

for that fiscal year. Such an outlay in CAPEX means that the

company is now under tremendous scrutiny and pressure for the

solution to operate without failure. More importantly, in today's

ultra-competitive business environment, the need for a faster

Return on Investment is imperative and can be a distraction to

the company's day-to-day operations.

Since we opened our doors we have realized one thing –

 It's not just about servers, it's about service. It's one of the reasons we are continuously praised for our extraordinary efforts at maintaining our customers' IT solutions. It's by far the most important reason that thousands of customers have relied on us to managed server solutions their servers on multiple platforms with differing degrees of complexity. In the event that we fail to meet the high standards we have set for ourselves (like our Zero-Downtime Network™ or our 1-Hour Hardware Replacement Guarantee), we will credit your account up to 100% until the problem is solved. Although Rackspace does not claim to being able to slow down the equipment depreciation process, we take on he responsibility of owning equipment that will depreciate so you don’t have to. We allow customers to upgrade on the fly without incurring the significant capital outlays associated with a collocated solution. We work hand-in-hand with you to make sure that your customers and your revenue-generating transactions are backed by the fastest, most efficient technology available, all at a reasonable price. Rather than pay for everything like dedicated lines, router, server chassis, firewalls, load balancers and software up front, Rackspace eases that financial burden. By providing each customer a Cisco Powered, multi-homed, auto-failover Network that is fed by multiple Tier-1 providers via multiple OC-12, and Gigabit Ethernet connections, Rackspace allows a company to significantly reduce its capital expenditures rather than pay for these necessary components all at once, thereby achieving a faster ROI!

RACKSPACE SOLUTION

The Financial Advantages of Rackspace® Hosting vs Colocation

Old-fashioned colocation is great for wasting a lot of time, money and brainpower on doing everything. And by everything, we mean purchasing all the hardware, designing your server configuration, deploying it and the monitoring, troubleshooting, upgrading,

patching, etc. The list goes on and on, day after day. And it never stops. With a Managed Hosting solution from Rackspace, the list is short. You simply put your time, money and brains into developing your sites and applications. We’ll take care of the rest.

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