Rackspace the biggest competitor to Amazon.com in the market for Web-based data centres reached a record high after sales and profit topped analysts’ estimates.

Rackspace’s revenue in that area jumped 86% last quarter to US$58.5 million, the San Antonio-based company has said. Sales in the traditional dedicated server business, where the company manages specific machines for customers, rose 23% to US$224.8 million. Net income jumped 85% to US$25 million from US$13.5 million, a year earlier. Revenue climbed 32% to US$283.3 million.

Source: On Cloud Computing

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