Rackspace Expects To Return $2.5-$3.5 Million For Monday’s Downtime

Posted Jul 3, 2009

Rackspace Hosting Inc. (NYSE:RAX) is expecting to return customer credit from the major outage that they had this past Monday.  The dollar amount that the company is expecting to return will be between $2.5 and $3.5 million according to an SEC filing.  The cause of the outage was a series of equipment failures at a Rackspace data center in Dallas, Texas.

Several generators malfunctioned which put several servers out of power without backup.  ?We sincerely apologize for this disruption and know that it impacted our customers? businesses as well as the experience of many who use the web,? stated Rackspace CEO Lanham Napier in a blog post. ?Although we have had some issues with this data center before, please know that we will do what it takes to improve its reliability and performance. We owe you an action plan to prevent this type of thing in the future, and we?ll get that to you as soon as it is ready.?  The data center in Dallas, Texas is 144,000 in square feet and is Rackspace’s largest facility.

Personal note: Pulse2.com uses Mosso, a Rackspace subsidiary and we have been 100% satisfied with their services.  Pulse2.com barely had any downtime and if there was, we were refunded immediately.