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, which went into effect in recent weeks, sets the standard plan at $10 per mailbox per month.

This represents a substantial jump from Rackspace's pricing as recently as November 2023, when the standard plan cost $3 per mailbox per month, according to data from the Internet Archive's Wayback Machine. Add-ons, such as Rackspace Email Plus (for file storage, mobile sync, Office-compatible apps, and messaging) and Archiving (for unlimited storage), now cost an additional $2 and $6 per mailbox per month, respectively. Previously, these add-ons cost $1 and $3 per mailbox per month.

Reseller partners, who offer Rackspace services to their own customers, have been particularly critical of the changes. Laughing Squid, a web hosting service provider and Rackspace reseller, expressed strong concerns in a blog post, stating that Rackspace is increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice.

The price hike has forced many businesses to re-evaluate their email hosting solutions. The sudden increase has left them scrambling to find alternatives or absorb the unexpected costs.

Rackspace has not yet issued a formal statement addressing the specific concerns raised by its partners and customers. The company's website reflects the new pricing structure, but lacks detailed explanation for the change. The long-term impact of this price increase on Rackspace's customer base and market position remains to be seen.