What is your basis for this statement? Theoretically, auctions don’t work very well in environments similar to IPOs. In practice, country after country has tried and had problems with this method. This is the one IPO method that has consistently done poorly around the world. What makes the US think that we’re so different, without even looking at the hundreds of IPO auctions that have been done internationally? Have you read the research on either the theory or the actual track record for this method?

What incentive do people have to put a lot of time and effort into evaluating shares in this type of auction? How many people understand the complicated theory behind bidding strategies? How much should you shave your bid for the winner’s curse, given that you can’t pin down to the nearest hundred, or even to the nearest thousand, how many bidders there will be? Perhaps you could walk me through when and why this method is a good idea, given that it takes work to come up with a reasonable estimate of the value of these shares, and given that the auction is open to potentially millions of free riders that have no clue what they’re doing and don’t want to do all that hard work.

I’m buying the stock based on their strong committment to the customer, you really can’t find another group with their dedication. RS is going to be around for many years – the management team is top shelf, the employees are exceptional – these guys are winners.

What you may be referring to is the S-1 filing with the SEC (available on their web site). This is a draft registration statement. You can tell it is a draft because certain numbers, such as the price, are blank. It is normal to have several of these before the one that is effective.

However, I can’t find anything in there that supports your claim that RAX will not be marketed to institutional investors. Please figure out what document you are looking at, and (assuming it’s public) let us know what document to go to and what page (the S-1 is over 100 pages). Thanks.

Wyatt

The difference is Rackspace gets the MOM alert and solves the problem when you are sleeping. You wake up and enjoy your breakfast.

Personally/professionally, I don’t have any relationship with rackspace and I think it looks attractive enough to consider investing in.

Thats one of the big things that I dont like about Rackspace…you can’t even see their prices w/o contacting their sales people which will push you to make their sale.

And honestly I don’t see Liquid Web as that small. Go on any webmaster forum and its pretty much considered a top level provider, right up there with rackspace. If you ask whats better LW vs [any competitor except Rackspace] you’ll always get that LW is better. And unlike RS they are actually there among the little guys, doing promotions, resolving issues, while RS is nowhere to be found because they don’t give a crap about the little guy and instead focus on big corporate clients. And VC backed startups that have been drinking their koolaid.

As far as data centers are considered, Liquid Web is already up to 2 datacenters and they don’t seem to have a problem scaling/getting users/keeping the same level of support.

And honestly, I can’t really see how Rackspace can be that much better than them at service. If I need to call, no matter the time of day I get a response within 2 rings. If I need to email, the first reply comes in 10-20 minutes after which its back and forth like instant messaging through email between myself and the support guy until my issue gets resolved. So what happens with Rackspace? Rackspace picks up a phone after 1 ring? And its 5 minutes instead of 10 for emails? I dunno about you but not getting gouged, not getting nickel and dimed for every little thing, and not getting the high and mighty attitude is worth to me, having to wait that 1 extra ring and that extra 5 minutes for a reply.

And no I don’t work for Liquid Web, I’m just a VERY satisfied customer who has been treated right from day 1(well day 0 actually, they were just as good and patient when I was asking questions)