Rackspace customers are facing a significant price increase for email hosting services, with some partners reporting increases as high as 706 percent. The new pricing structure, implemented in recent weeks, sets the standard plan at $10 per mailbox per month. Additional features are available through add-ons, including Rackspace Email Plus at $2 per mailbox per month and Archiving at $6 per mailbox per month.
The price hike has sparked considerable concern among Rackspace's reseller partners, who are now grappling with how to pass on the increased costs to their own customers. Laughing Squid, a web hosting service provider and Rackspace reseller since 1999, highlighted the dramatic increase in a blog post, noting the short notice provided before the changes took effect.
According to data from the Internet Archive's Wayback Machine, Rackspace previously charged $3 per mailbox per month for its Standard plan as recently as November 2023. The Email Plus add-on cost an additional $1 per mailbox per month, and the Archival add-on was priced at $3 per mailbox per month. The current pricing represents a substantial shift in Rackspace's email hosting strategy.
The reasons behind the price increase remain unclear, and Rackspace has yet to issue a comprehensive statement addressing the concerns raised by its partners. The impact on small businesses and organizations that rely on Rackspace for email hosting could be significant, potentially forcing them to seek alternative providers or absorb the increased costs. The situation is ongoing, and further developments are expected as customers and partners assess their options.
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