Rackspace Hosting's announcement of Rackspace Cloud: Private Edition, revealed that they are continuing with the leasing of data centre space despite the fact that this will extend its business from beyond its own facilities.
Last year, Rackspace organised an "open source cloud computing platform" namely the OpenStack, which will power the new private edition cloud, as reported by Data Center Knowledge.
This will give rackspace an opportunity to earn revenues based on private clouds operating in customers' on-premise data centres as well as third-party common location centres which are controlled by companies such as Equinix.
Lanham Napier, Rackspace CEO, said, "We believe (private cloud) has the potential to dramatically improve IT operations worldwide. We believe that OpenStack is the de facto open source cloud computing standard," as published in Data Center Knowledge.
Napier also added, "This is a first step to take Fanatical Support outside our data centres."
In an effort to ensure compatibility as well as interoperability in the whole industry, Rackspace already published for OpenStack, a reference architecture. The main reason why OpenStack is liked and favoured by companies is that it lets "companies to run standardised clouds positioned in various locations."