Rackspace customers are facing a significant increase in email hosting costs, with some partners reporting price hikes as high as 706 percent. The changes, which went into effect in recent weeks, have sparked concern among businesses that rely on Rackspace for email services.
The new pricing structure sets the standard plan at $10 per mailbox per month. Additional features are available through add-ons, including Rackspace Email Plus for $2 per mailbox per month, offering file storage, mobile sync, Office-compatible apps, and messaging, and an Archiving add-on for $6 per mailbox per month, providing unlimited storage.
According to data from the Internet Archive's Wayback Machine, Rackspace's pricing as recently as November 2023 was $3 per mailbox per month for the standard plan, with the Email Plus and Archival add-ons costing $1 and $3 per mailbox per month, respectively.
Reseller partners have been particularly vocal about the impact of the new pricing. Laughing Squid, a web hosting service provider and Rackspace reseller, published a blog post on Thursday stating that Rackspace is increasing their email pricing by an "astronomical 706 percent," with only a month-and-a-half's notice.
The price increase impacts businesses of all sizes that utilize Rackspace's email hosting services. The sudden and substantial nature of the change has left many customers scrambling to assess their options and adjust their budgets. The long-term effects on Rackspace's customer base and market position remain to be seen.
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