Rackspace posts 55% increase in half-year profits

Hosting giant Rackspace saw profits grow by 55% to $48.3m (£31m) in the first six months of this year

Hosting giant Rackspace saw profits grow 55% to $48.3m (£31m) in the first six months of this year.

Total revenue for the first half of the year was $620m, a 30% jump on the first half of 2011.

“At the halfway point in the year, we have made a lot of progress on our plans to broaden our product and services portfolio, while simultaneously managing a rapidly growing business,” said Rackspace chief financial officer Karl Pichler.

"Keep your eyes open for more product announcements in the coming weeks and we look forward to updating you on our progress in November," he added.

Anthony Miller, co-founder of analyst firm TechMarketView, said the results reflect a growing appetite for hosted services.

“Demand for quality off-premise hosting services seems to be huge, as so long as these companies don’t trip up, it's hard to see how they would stop growing,” he said.

Total server count increased to 84,978, up from 82,438 servers at the end of the previous quarter, and total customers increased to 190,958, up from 180,866 at the end of the previous quarter.

Image: Hemera/Thinkstock

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