SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* STILL GEORGE J JR (Last) (First) (Middle) 525 UNIVERSITY AVENUE, SUITE 800 (Street) PALO ALTO CA 94301 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol RACKSPACE HOSTING, INC. [ RAX ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X Director X 10% Owner Officer (give title below) Other (specify below)
	3. Date of Earliest Transaction (Month/Day/Year) 11/14/2008
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	11/14/2008		P		23,394	A	$6.5	17,794,697	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		2,100	A	$6.495	17,796,797	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		2,674	A	$6.49	17,799,471	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		275	A	$6.4825	17,799,746	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		15,609	A	$6.48	17,815,355	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		1,800	A	$6.475	17,817,155	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		100	A	$6.474	17,817,255	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		2,535	A	$6.47	17,819,790	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		100	A	$6.466	17,819,890	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		100	A	$6.465	17,819,990	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		200	A	$6.455	17,820,190	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		1,000	A	$6.45	17,821,190	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		200	A	$6.44	17,821,390	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		100	A	$6.42	17,821,490	I	By limited partnership(1)(2)
Common Stock	11/14/2008		P		600	A	$6.41	17,822,090	I	By limited partnership(1)(2)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Includes (i) 4,553,572 shares held by Norwest Venture Partners VII-A, L.P.; (ii) 10,510,282 shares held by Norwest Venture Partners VIII, L.P.; (iii) 509,444 shares held by NVP Entrepreneurs Fund VIII, L.P.; (iv) 2,189,350 shares held by Norwest Venture Partners IX, L.P.; and (v) 60,341 shares held by NVP Entrepreneurs Fund IX, L.P. Mr. stil, one of our directors, is a managing partner of (i) Itasca VC partners VII-A, LLC, the general partner of Norwest Venture Partners VII-A, L.P.; (ii) Itasca VC Partners VIII, LLP, the general partner of each of Norwest Venture Partners VIII, L.P. and NVP Entrepreneurs Fund VIII, L.P. and (continued in next footnote)

2. (iii) Genesis VC Partners IX, LLC, the general partner of each of Norwest Venture partners IX, L.P. and NVP Entrepreneurs Fund IX, L.P., and may be deemed to share voting or dispositive power over the shares held by the entities set forth in this explanation. Mr. stil disclaims any beneficial ownership of shares held by the entities affiliated with Norwest Venture Partners, except to the extent of any pecuniary interest therein.

Remarks:

Form 1 of 2. For additional information also refer to both Form 4s filed concurrently herewith by the Reporting Person.

	/s/ Kurt L. Betcher, Attorney-In-Fact for George J. Still, Jr.	11/17/2008
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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