Rackspace the huge hosting company goes to market on Friday with its IPO.

The ten-year-old company logged net revenues of $362 million in 2007, and a profit of $17.8 million.

It’s offering 15 million shares at between $12 and $16 per share in a Dutch auction format (what Google used for its IPO), and it’s backed by some great names in venture capital, including Sequoia and Norwest Venture Partners.

“Rackspace is well-positioned as a provider of next-generation hosting services,” said Bill McNee of Saugatech Research Services, a consulting firm. “The question is, what will they do to differentiate themselves in an increasingly crowded market?”