Tuesday, May 8th, 2012 - Rackspace Hosting
Sydney, May 8, 2012 - Rackspace® Hosting (NYSE: RAX), the service leader in IT hosting and cloud computing, today announced the results of its first Australian online shopping survey, conducted by Roy Morgan Research. Respondents answered questions about their online shopping behaviour, revealing a positive outlook and interesting findings about what causes 90 per cent of connected Australians to spend online.

“Our survey indicates that online shopping in Australia is going strong and most Australians have and will continue to purchase online in 2012” said Mark Randall, Country Manager of Rackspace Australia and New Zealand. “Online shopper’s loyalty is largely driven by convenience, variety and pricing. But, get one thing wrong and you could quickly lose them to your competitors.”

One of the standout pet peeves of online shoppers is loading times. 44 per cent of shoppers polled said they would move on if a page takes more than 15 seconds to load. After 30 seconds almost 70 per cent said they would be gone and if a website takes more than a minute to load, more than 90 per cent said they would give up.

“Some of the key sales drivers can be directly attributed back to the technology platforms that power the online store. Online shoppers are impatient,” said Randall. “Carefully selecting a reliable and fast hosting solution, ideally with a Content Delivery Network (CDN) capability, could mean that an online retailer greatly increases their chances of a successful sale.”

The survey reveals that a surprisingly low proportion of online sales in Australia are done using apps and smartphones. Compared to a recent, similar survey in the UK, Australians are about half as likely to use an app or a smartphone to for online purchases.

“Australians don’t seem to have taken to shopping on their smartphones or using M-commerce apps quite yet, with the vast majority using their PC or laptop for online purchases,” said Randall. “More than 85 per cent of respondents make their online purchases on their home computers.”

The main advantages of purchasing products or services online could in most cases be attributed to convenience, variety and price. 83.2 per cent of the respondents listed convenience as one of the key benefits, closely followed by price (71.1 per cent), price comparison (60.8 per cent) and a wider variety of products and services (47.4 per cent).

“Online retailers that don’t invest in website platforms that allows shoppers to easily browse through products, ensures that prices remain competitive, and deliver an overall convenient shopping experience could quickly lose business.” Randall concluded.

Finally, online retailers may not need to worry too much about tailoring their websites for gift-purchases - over 90% of the survey respondents said they are shopping for themselves.

Contact Profile

Rackspace Hosting

Rackspace Hosting is the service leader in IT hosting and cloud computing. Rackspace provides Fanatical Support ® to its customers, across a portfolio of IT services, including Managed Hosting and Cloud Computing. The company was also positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting”. For more information, visit www.rackspace.com.au.

Forward-Looking Statements

This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements relating to expected or predicted behaviors of consumers and the impact of those behaviors on hosting provider decisions; any statements of expectation or belief directly relating to Rackspace business derived from the survey results; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include a substantial margin of error in the survey results, inconsistencies in respondent's understanding and Rackspace's analysis of survey questions and results, the possibility that expected benefits from any shift in consumer behavior may not materialize as expected; the achievement of expected operational results from any shift in consumer behavior; and other risks that are described in Rackspace Hosting's annual report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on February 17, 2012. Except as required by law, Rackspace assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Vuki Vujasinovic
P: 02 8006 0132
W: www.rackspace.com.au


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