Facebook Growth Boosts Results at Rackable

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Sales of its high-density servers and racks to huge customers have been the bread and butter for Rackable (RACK), as Microsoft (MSFT) and Yahoo (YHOO) have historically accounted for about 60 percent of the company’s sales. Last quarter analysts noted that sales to Amazon (AMZN) were helping Rackable’s results, as the retailer buys hardware to support its utility computing platform.

In the latest quarterly earnings call, Rackable said it has added a fourth large customer, as Facebook is now among its top accounts. That relationship positions Rackable to benefit as Facebook beefs up its infrastructure in coming months. Facebook recently leased additional data center space from DuPont Fabros, and has cash to invest in the wake of fresh investment from Microsoft and venture capital firms. Facebook had 30.6 million visitors in September, according to data from comScore.

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.