"Early on, Rackspace adopted a policy of expansion only as necessary," says Andy Schroepfer, president of Tier 1 Research, which is associated with Rackspace "While other providers bought extra data center space before they needed it, Rackspace was more cautious, buying only what they needed to grow. Now, after eight consecutive quarters of profitable revenue growth, Rackspace once again needs to add data center space to support its customers."

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