Rackspace's first quarter was a bit of a disappointment, but there are some encouraging signs in their second quarter numbers, which the companyreleased Tuesday.
In a conversation Tuesday with CEO Lanham Napier, I got a breakdown of the quarter.
Last quarter analysts were concerned about the tepid growth in the cloud service provider's installed base; it was up just .7 percent.
In the second quarter it returned to the one percent level where it had been trending. Why?
Net upgrades grew 1.7 percent, which means people were upgrading to higher value service packages at a higher rate than they were downgrading. Rackspace said it took a hit last quarter because after the busy holiday season, some retail customers didn't need the extra data center services to handle traffic.