Rackspace to Partners: Welcome to the Cloud

Last week San Antonio-TX-based Rackspace introduced a new cloud computing program for its 1,500 global partners.

The new cloud partner program will be different from other Rackspace partner programs – managed hosting and Email & Apps – as there will be a different compensation structure offered to partners.

Rackspace’s cloud partner program is for two types of partners: affiliates and resellers. Affiliates will earn 5% of customers’ monthly spend on cloud computing for three years and commissions start during the first month of active billing. Meanwhile, Rackspace reseller partners buy cloud hosting services and resell them to customers and generate profits from customer fees.

“Initially, we’re treating this as a separate partner program,” Fuller said, in a story. Rackspace e-mailed current partners information on the cloud partner program on February 18th, containing a link to sign up and to access additional details.

It looks like Rackspace was motivated to create the new partner cloud platform due to rising revenue from the technology. In the fourth quarter, Rackspace reported overall revenue of $169.5 million, an increase of more than 4% from the previous quarter and up more than 18% from fourth-quarter 2009.

In particular, cloud computing generated great business for Rackspace. In the fourth quarter, computing revenue rose to $17.1 million, up from $15.3 million in the third quarter. For the whole year, cloud revenue skyrocketed nearly 125% — to $56.4 million, according to the company.

Glad to see expanding choices for companies that want to offer customers cloud services, and even more pleased to read that Rackspace’s revenue is derived more and more from cloud computing. That’s a trend we’ve been experiencing here at Monitis, too, as more and more firms migrate to the cloud and look for independent services to monitor performance and reliability of hosting services.