Rackspace customers are facing a significant price increase for email hosting services, with some partners reporting increases as high as 706 percent. The change, which took effect in recent weeks, raises the price of the standard plan to $10 per mailbox per month.
Previously, as recently as November 2023, the standard plan cost $3 per mailbox per month, according to data from the Internet Archive's Wayback Machine. The Rackspace Email Plus add-on, which includes file storage, mobile sync, Office-compatible apps, and messaging, now costs an additional $2 per mailbox per month, while the Archiving add-on, offering unlimited storage, is priced at $6 per mailbox per month. These add-ons previously cost $1 and $3 respectively.
Reseller partners have expressed strong concerns about the impact of the new pricing structure. 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 hike has prompted some customers to re-evaluate their email hosting options. The reasons behind Rackspace's decision to increase prices remain unclear. The company has not yet issued a public statement explaining the change. The situation is ongoing, and the long-term effects on Rackspace's customer base and market position are yet to be seen.
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