Acorn Systems Announces Entry into Rackspace Partner Network

Acorn OnDemand to leverage the world’s leader in hosting

HOUSTON, TX (March 25, 2010) – Acorn Systems today announced they have entered into the Partner Network with Rackspace® Hosting, (NYSE: RAX), the world’s leader in the hosting and cloud computing industry. This relationship is designed to add mutual value for their current clients and to increase targeted exposure and reputation for both companies.

“Rackspace has a leadership position in the hosting industry and a sterling reputation due to its legendary Fanatical Support,” said Chris Fraga, Chief Strategy Officer at Acorn. “We are excited to leverage their capabilities as a hosting partner to power Acorn’s OnDemand Hosted, Managed, and SaaS offerings. The combination of Acorn’s people/experience, tools/packaged apps, and proven methodologies, with Rackspace’s hosting and support creates an unparalleled offering in the performance measurement and management market. Acorn’s OnDemand offerings include pre-configured solutions for: OnDemand effective and sustained cost reduction and management; OnDemand profit modeling and optimization; and OnDemand Internal Cost Allocation and Chargeback. The timing of our new relationship with Rackspace could not be better, as clients are craving fast and meaningful financial improvements, with minimal people and financial resource commitments. Acorn OnDemand provides these benefits to clients in weeks-to-months vs. quarters-to-years with traditional market offerings.”

Acorn is a recognized leader in solutions that drive significant profit improvement, cost reductions and operational efficiencies. Based on customer and market feedback, their next-generation software is now available with the rapid time to value of a software-as-a-service (SaaS) offering. The full capability of Acorn’s Enterprise Performance Suite (EPS) is available to customers and partners, confidently delivered from the market leader in hosting, Rackspace. Specific solutions offered via OnDemand, including pre-configured ‘‘value accelerator” template models, include:

OnDemand Effective and Sustained Cost Reduction:
(1) Cost-to-Serve Analysis
(2) Supply Chain Flow Path / Cost Analysis

OnDemand Profit Modeling and Optimization:
(1) Customer (Channel, Segment) Profitability
(2) Product (SKU, Category) Profitability and Rationalization

OnDemand Internal Cost Allocation and/or Chargeback:
(1) Internal Cost Allocation and/or Chargebacks

“Rackspace is excited to bring Acorn into our channel partner program to help ensure they receive the services and support necessary for the long term success of Acorn OnDemand,” said Robert Fuller, Vice President of Worldwide Channel Sales. “Our shared customers will benefit from the incredible value of the combined package – Acorn in identifying real business opportunities, Rackspace in delivering great IT value.”

Gartner, Inc., the world’s leading information technology research and advisory firm, confirms the value of SaaS models from a market perspective, “There are many advantages to considering the SaaS model for profitability modeling and optimization – when the goal is cost reduction and rapidly moving beyond in-house legacy capabilities,” said John Van Decker, Research Vice President at Gartner. “SaaS models provide quick implementation, low investment, and less need for IT involvement, as compared to traditional alternatives, and a logical on-ramp on a continuum to more sophisticated capabilities.”

About Acorn Systems
Acorn Systems is a leading provider of profit improvement solutions for growing revenues profitably, reducing costs and improving operational efficiencies. Acorn has delivered profit improvement results for Global 2000 companies in the Financial Services, Retail, Consumer Products, Manufacturing, Distribution, Logistics and Services sectors. Utilizing a trademarked technology and proven methodology, Acorn reveals profit opportunities across the enterprise, including customers, channels, segments, products, vendors, and processes. Acorn’s unique approach enables clients to achieve results in a fraction of the time of traditional approaches, and to make continuous, fact-based decisions to improve their bottom line and Earnings per Share (EPS), yielding over $5 billion in profit improvements and creating billions in new shareholder value.