I have two hosting companies I deal with on a regular basis. The first of course being HostMySite.com, while the other is the big player over at Rackspace. For the most part, both companies offer dedicated managed servers running Windows or Red Hat, with 24×7 Support and quality networks and top notch people. Really the only perceivable difference I have found is that Rackspace is considerably more expensive.

The question then becomes, how can two companies, with very similar business models and similar service structure charge prices that vary between 33% to 50%? I’ve gotten quotes from both companies for the exact same services, and had Rackspace very clearly be the more expensive of the two options. So again, the question should be poised, “How can Rackspace charge so much more than a very comparable competitor?”

Because people will pay. Rackspace has spent a fortune in marketing and advertising themselves as a premiere hosting provider, with their Fanatical Support. You ask around, and almost anyone in IT will be able to tell you who and what Rackspace is, while unless you are from the Delaware, Northern Maryland or South Eastern PA areas, you may not have a clue as to who is HostMySite.com.

Rackspace has spent a lot of time and money to build their brand as a premium solution. This instantly puts people in the mindset that they will be paying a premium price. So when Rackspace tells someone it will be $800/month for a server, it doesn’t come as much of a surprise.

Personally, I like both companies and find them both to do their jobs admirably. Do I think Rackspace is 33% or more a better solution than HostMySite.com? Absolutely not. Rackspace is a great company, with a great product, but they are also a larger company, with over 2000 Rackers and have an international focus. Even with as much as I have talked to my Account Manager there, I still feel like each time I’m talking to her anew. I really don’t feel like I as an individual have made any sort of impression on anyone there.

Scott over at HostMySite.com has always treated me well, and even recognizes my number when I call on occasion. Maybe it is because of the fact that we have met in person, or simply because HostMySite.com doesn’t require their account reps to support the same volume of clients, it always feels like he is remembering me every time I call.

Both companies have always provided everything they promise to me, and I can’t say anything bad about either. All I can say, is that Rackspace is more expensive than HostMySite.com, mostly for the fact of solid marketing, and ensuring that their name has crossed the eyes of every IT professional out there.