UK2Group Hosting Web

Rackspace hosts Internet sites for other companies, and it has won an armload of trade awards for service. But it wasn't always so customer friendly. Originally, says the company's founder, Graham Weston, Rackspace had a "denial of service" business model. Customer service interactions were viewed as costs to be minimized -- the more roadblocks that could be erected to keep the phone from ringing, the better profits would be. Providing great service would inevitably cost more, and if Rackspace offered both premium service and cutting-edge technology it would have to set prices too high. By 2007, Rackspace was talking to customers three times a week, on average. The focus on service paid off.