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'Cloud' to Hover Over Asia: Rackspace CEO

Monday, 13 Aug 2012 | 11:35 AM ET

Despite worries about cybersecurity in China, Asia-Pacific remains an attractive market, Lanham Napier,Rackspace Hosting's CEO told CNBC’s “Squawk Box” on Monday.

Rackspace Hosting Inc. signage is displayed at the front entrance of the company's office in San Francisco, California.
Noah Berger | Bloomberg | Getty Images
Rackspace Hosting Inc. signage is displayed at the front entrance of the company's office in San Francisco, California.

“Our next set of investments will be in Asia-Pacific because the demographics are good,” the Rackspace chief said.

Doubts have emerged recently about cloud computing (explain this), amid a spate of breaches that raise concerns about data security. When asked about security, Napier said “I think the security gets managed.”

Napier added, “There are certainly issues around the firewall in China, but those things will get solved because the demand there is huge.” (Read More: 10 Ways Companies Get Hacked).

Companies like Google have had trouble in China because of the firewall. Yet Napier still sees ample opportunity for cloud computing growth in the region. “Right now, we’re in Hong Kong, we’re on the other side of the firewall,” he said. Demand has been strong in Australia and Rackspace is looking at opportunities across the sub-Continent as well, he added.

Rackspace faces competition from some of technology’s biggest companies like Amazon , Google and Microsoft but believes a laser-like focus on support will help Rackspace separate itself from the cloud-computing pack.

Cloud Computing: Sky's the Limit?
Lanham Napier, Rackspace Hosting president & CEO, discusses the future of cloud computing and why this technology provides an opportunity for entrepreneurs.

Delineating the differences, “They are generalists and we are a specialist,” Napier said. “They use closed proprietary technologies, we use open-source technologies. They are playing a scale game where we are playing a service game.”

Napier also prefers to continue to build its business independently, and isn't interested in selling Rackspace to one of these big tech firms. “Cloud is in early days," he said. “Just because those other companies won the first couple of iterations of tech, doesn’t mean they’re necessarily going to win cloud.”

In an age of cyber-threats and with so much personal information migrating to a field being hailed as the next big thing in computing, Napier also has some practical advice — change passwords frequently. “What we are discovering is the dependence we all have on these systems,” he said. “So when people talk about password rotation, you need to do it.”

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