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. 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 expressed strong concerns about the impact of the new pricing. 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 affects businesses that rely on Rackspace for email hosting, potentially forcing them to seek alternative providers or absorb the increased costs. The suddenness of the change, as highlighted by Laughing Squid, adds to the challenge for businesses trying to adjust their budgets and IT strategies.

Rackspace has not yet issued a comprehensive public statement addressing the specific concerns raised by its partners and customers. The company's future actions regarding pricing adjustments and customer support will likely determine the long-term impact of this change.