Rackspace ‘Generation Cloud’ Research Shows Brits Could Be Stashing as Much as £24 Billion of Digital Assets in the Cloud

LONDON--(BUSINESS WIRE)--New research from Rackspace® Hosting (NYSE: RAX), the open cloud company, shows that Brits may be trusting the cloud* as never before with up to £24 billion** worth of digital assets stored remotely.

According to the survey, people are also keeping treasured memories in the cloud with 68 per cent storing an average of 920 photos online. They’re also storing an average of 226 music tracks and 45 video files in the cloud.

However, few are planning ahead with regards to what happens to these prized assets when they die. Only 32 per cent of respondents have made any kind of formal provision such as plans to share passwords with loved ones or leaving details in a will. This means that billions of pounds*** of digital assets could be potentially lost forever.

The study, ‘Generation Cloud 2012’, commissioned by Rackspace and backed by quantitative third party research of 2,000 UK adults also reveals:

• On average, people spend three hours every single day using cloud services – an increase of 45 minutes per day from 2011
• We’re trusting the cloud with important data – over half (55 per cent) of the respondents store passwords in the cloud with 39% keeping important financial or legal documents in the cloud such as credit card numbers, bank statements, and copies of their will.
• Security (cited by 57 per cent) and privacy (by 54 per cent) are the biggest concerns related to cloud services. Just 12 per cent said they ‘totally trust’ their cloud provider.

Fabio Torlini, VP at Rackspace, says: “It’s clear that the cloud has now become a massive part of our lives as we host our most treasured possessions in terms of both monetary and emotional value. With us already spending as much as three hours a day using cloud services, it’s now not too difficult to imagine a world where we no longer store data exclusively on our own computers and devices as we get used to having all that matters to us available wherever whenever we want it.”

Sarah Needham, Senior Associate at International law firm Taylor Wessing concludes: “There is no doubt that cloud computing is the key trend for the tech sector and for us as consumers over the short and long term. Consumers must re think their approach to the data they put in the cloud and how they can ensure that the content is protected as they wish after they die. The key message is still to check site terms and conditions match what you expect will be done with your data and consider including passwords in your will for your executors to manage your data after you have gone. Don't rely on the legislation tortoise to protect your data as the state will never be able to catch up with the innovation hare.”

ENDS

Notes to editors

Rackspace commissioned research house OnePoll™, a division of SWNS Media Group, to survey 2,000 adults across the nation to provide a representative sample of UK adults aged 18 years and over.

*When referring to ‘the cloud’, ‘cloud-based services’ and so on, Rackspace is referring to the management and provision of applications, information and data – i.e. computing power - as a service. Cloud services are usually accessed and provided over the internet, often at no cost in the case of consumer cloud services.

** The UK adult population over 18 in 2009 was 48.2 million, according to UK’s Office for National Statistics (ONS). The average of amount of digital assets that respondents reported they had stored electronically was £508. When this average is multiplied by the ONS population number, it produces an amount equal to £24.48 billion.

***68 per cent of the survey respondents answered that they have not considered what will happen to their digital assets. 68 per cent of the total asset figure of £24.48 billion (for the calculation above) produces a total of approximately £16.64 billion, representing an amount of digital assets that could potentially be lost (assuming that 100% that have not considered what would happen to these assets would ultimately lose them).

About Rackspace

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 190,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a broad portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. The company offers choice, flexibility and freedom from vendor lock in. Rackspace has been recognised by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and is featured on Sunday Times list of 100 Best Companies to Work For. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.”

Rackspace Limited, the UK subsidiary of Rackspace Hosting®, is headquartered in San Antonio with offices and data centres around the world. For more information, visit rackspace.co.uk.

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 cloud computing; 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 quarterly report on Form 10-Q for the second quarter 2012 filed with the Securities and Exchange Commission on August 9, 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.