In the 'Get Offa My Cloud' Department, has decided to head over to RackSpace and use their cloud computing to power its software as a service video encoding.

Why? Isn't one cloud the same as the other (silver lining and all)? Apparently not. believes that the cloud computing at Rackspace Hosting will give them more power and higher average speed of encoding. In fact they believe that it could be up to twice as much and without any additional cost to them.  That's a great deal if I ever heard one. Why might they do that?

Well on a weekend last year, processed 100,000 videos. Yes, in one weekend. That's an awful lot of videos I must say and to provide guaranteed turn-around times for encoding services at a fraction of the cost of in-house encoding they seem to need more processor power for those peak times.  The company is said to have encoded more than three and a half million videos to date.

"We offer a studio-class service at industry-leading encoding speeds with guaranteed service level agreements.  We need a cloud solution that is powerful, dynamic and stable," said Jeff Malkin, chief operating officer,  "With their Fanatical Support, rapid response and personal attention, The Rackspace Cloud helps us focus on what we know best – video encoding.”
It seems to be win-win for everyone. Rackspace gets another major client and gets to shave off valuable seconds for their clients. If it does not in fact cost anymore and allows to 2x the power it certainly should be helpful.
I've done some encoding there and I have to say, it was plenty fast to begin with. I was not at all disappointed with the speed and quality of the encoding. Of course I was doing tiny little files and now 1GB monster HD videos. Perhaps this is a quick step for them to take on some new larger clients. I know several video sharing sites already use them as their backend encoding service so maybe they have some offers on the table for some further processing and needed the extra power. I guess we'll find out soon enough.
  • Andy

    I think a little more skepticism is warranted. Based on's volume and the PR value of getting the account away from AWS, I find it hard to believe that Rackspace didn't give them some pretty awesome pricing. That alone could account for the doubling of speed at no additional cost.

    • Christophor Rick

      Oh I'm skeptical of all things :) But really what it means for us is that shouldn't be able to say 'well we got this extra power and have to charge more.' So Rackspace sort of shot them in the foot with that announcement as they won't be able to raise prices on it. They'll have to find some other value add services to throw in.