Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On November 12, 2008, Fred Reichheld was appointed to our Board of Directors. Mr. Reichheld will serve as a Class I director and will stand for reelection at the 2009 annual meeting of stockholders. Mr. Reichheld was also appointed as Chairman of our Strategy and Service Committee.

Mr. Reichheld will enter into our form of indemnification agreement for directors in connection with his membership on the board. Additionally, Mr. Reichheld will be eligible to receive quarterly and annual cash and/or stock awards pursuant to our director compensation program.

On November 20, 2008, we issued a press release announcing the appointment of Fred Reichheld to our board of directors. A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release of Rackspace Hosting, Inc., dated November 20, 2008, announcing the appointment of Fred Reichheld to its board of directors.

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