Rackspace customers are facing a significant price increase for email hosting services, with some partners reporting increases 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 Archiving 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 significantly lower. The standard plan cost $3 per mailbox per month, with Email Plus at $1 per mailbox per month and Archival at $3 per mailbox per month.
Reseller partners have been particularly vocal about the impact of the price hike. Laughing Squid, a web hosting service provider and Rackspace reseller, stated in a blog post on Thursday that the company is increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice.
The price increase impacts businesses of all sizes that depend on Rackspace for email hosting. The sudden and substantial nature of the change has left many customers scrambling to reassess their budgets and explore alternative solutions.
Rackspace has not yet issued a formal statement addressing the concerns raised by its customers and reseller partners. The company's website reflects the new pricing structure, but offers no specific explanation for the change. The long-term effects of this pricing adjustment on Rackspace's customer base and market position remain to be seen.
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