Okay, I want to do something different here. Instead of trying to sell you a company here, I’m going to try to pitch the company’s personality…
Why do I like RackSpace Hosting? Because they are a company of passion, belief, loyalty and well, they’re full of geeks. It’s someplace where I can see Chris Pirillo working on the weekends for fun. I’ll admit, I’m a geek too! Let me list some for you…
– started high school chess club, and never lost in all four years! LOL. Granted, my school was a bit dumb.
– I arrange my clothes in my closet by color, and I prepare the next days clothes the night before… ironed and all! Hmmm, a bit geeky-pansy.
– I had over 200 credits in college. Bwa ha ha!
– I created a video game
– I have a binary clock in my room. 1s and 0s.
– I count cards
– I led my humble school against Punahou (that’s Obama’s private high-school alumni) and won in a quiz bowl.
– I’m a Street Fighter 2 legend
– I can’t cook
… yeah, I’m pretty up there on the geek scale. I try to hide it by playing sports and serenading women. Works most of the time.
Anyway, with my credentials set, I think I can say that [[rax]] geek mentality is their competitive advantage. They just love their work, and find victory in personal accomplishment while helping clients. This is all almost revolutionary in the work force. Before, it was the industrial revolution, Henry Ford’s idea of the assembly line, where profits were met by production. And where planned obsolecence meant more sales. Naturally, the more efficient the line, the higher the quantity, and hence the higher the profits. But China kind of abused that in our recent history. What we are seeing develop before us, which is nicely manifested in RAX’s mantra is to be “fanatics,” to give a superior product backed by superior support. To give them something that will work the first time and to make sure it works during its lifetime. I really like their idea of “fanatical support” here, which basically, as they claim, means they will help you each step of the way until you get it done. It kind of caught my attention, because recently, I’ve been living off my own mantra “Let’s make it work”, which is almost the same, or at least has the same positivity to move one to complete something against odds and obstacles- let me tell you, it has helped me to progress in many ways. For example, before you enter a trade, just tell yourself “I’m gonna make this work.” How many times do I see guys trade a stock and say, I know it’s gonna go against me… well then what the heck?! Why get in the trade? (“making it work” could also mean knowing when to get out and try again later.) Take a few jabs, knock ’em out later. Don’t be a defeatist, be a fanatic. Try say that to yourself when you’re stuck. So anyway, I can sit here and explain to you all the accounting numbers for RAX, they are healthy, but I like working backwards here and finding out what makes a company tick. When you have a bunch of fanatics you’ll get things done. What sets RAX apart from other hosting companies is that they promise something close to perfection- yup, they are so confident in their abilities, that they are willing to refund the fees if the software they host does not work as promised. Talk about accountability! That’s very important when it comes to implementing “cloud computing”, because when a company goes that route, it’s almost like they are handing over the car keys to a third-party and saying, “okay, you drive, while I sell the ice cream. Oh yeah, I forgot to tell you what RAX does, I rather not though because I will lose you in a minute. What you need to know is that they are just a bunch of geeks who like to do what they do… like Google. Maybe something like Motorola’s Sixth-Sigma concept. Whatever, I just like it. They set the bar high, and are willing to jump for it. And it’s working… 61% jump in new customers, revs up 57% from last year. Pretty good stuff. I expect those to get better.
So what am I trying to say here? I’m not really saying to go out and buy this stock first thing Monday. My last post showed that RAX is really breaking out nicely, and volume is backing its move, but still, the coverage it is getting from Goldman Sachs sets this stock up as a candidate for quick sell-offs. I would invest on those sell-offs if you believe in that fanaticism and obsession for success is what our new economy will be shaped by. What I am saying though is to look out for any other company that shares this drive. Kind of like AAPL. Meanwhile, dump the Fords, the GMCs, even WalMart (yawn), and MSFT, and other old fashioned run companies. Even if you decide not to buy RAX, at least be a fanatic in your life! Give fanatical support to a few really close friends, especially people like your wife, or parents. I mean, don’t be a stalker, but make a silent promise that you will support them even in little ways. Wife looks tired? Massage her feet. Parents are sick? Water their plants. Friend is sick? Bring over some pho or soup and a pack of cards. Husband feels bad about work? Compliment him. When you play the part of a picture frame, you’ll feel good, and find something that wasn’t there before in that certain picture. You’ll get something 10x better in return, even if you don’t, you’ll feel great inside being on the side. Support builds loyalty, and if we can learn that from a hosting company like RAX, then I’d say we made a good investment. Give fanatical support to someone today!
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