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, a substantial jump from the $3 per mailbox per month Rackspace charged as recently as November 2025, according to the Internet Archive's Wayback Machine.
The price hike also affects add-on services. Rackspace Email Plus, which includes file storage, mobile sync, Office-compatible apps, and messaging, now costs an additional $2 per mailbox per month. The Archiving add-on, offering unlimited storage, is priced at an extra $6 per mailbox per month. Previously, these add-ons cost $1 and $3 per mailbox per month, respectively.
Reseller partners have voiced strong concerns about the impact of the new pricing on their businesses and customers. Laughing Squid, a web hosting service provider and Rackspace reseller, published a blog post on Thursday stating that Rackspace is increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice.
The sudden and substantial price increase has left many Rackspace customers scrambling to evaluate their options. For businesses that rely on Rackspace for email hosting, the increased costs could significantly impact their operating expenses. Some may consider migrating to alternative email providers, while others may absorb the higher costs.
The reasons behind Rackspace's decision to increase prices remain unclear. The company has not yet issued a comprehensive statement explaining the change. The lack of transparency has further fueled frustration among customers and partners. The long-term effects of this pricing change on Rackspace's customer base and market position are yet to be seen.
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