Pros
Rackspace employs some of the best engineering talent in the industry. If you are looking to sharpen your skills or learn more about the latest complex hosting technologies, Rackspace is the place to be. Rackspace does a good job of treating its employees fairly and strives to keep the work atmosphere as family oriented as possible. Customers love Rackspace and after working there only a short time you will witness an unparalleled passion for customer excellence by all members of Rackspace support teams. The managers at Rackspace is for the most part very good about listening to your questions or concerns and try hard to accommodate everyone's needs.
Cons
Three years ago I would not have dreamed of working any place else. Rackspace was the best of the best. Unfortunately the quality of people they have hired recently has degraded significantly. This is partly due to the Sr. Rackspace employees venturing off into other areas or other companies and partly due to the recent IPO which shook things up from a management perspective. Rackspace has to answer to the public now and has to show profitable earnings on a regular basis if it wants to succeed as a company. Rackspace is still trying to learn the balancing act of keeping investors happy and keeping employees and customers happy. This is a very hard thing to do for many companies which is why when things become too corporate, the start-up (creative) types walk out the door. It's just part of the life cycle of a company I suppose.