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.

This represents a substantial jump from Rackspace's pricing in November 2025, when the standard plan cost $3 per mailbox per month, according to the Internet Archive's Wayback Machine. Add-ons such as Rackspace Email Plus, which includes file storage, mobile sync, and Office-compatible apps, now cost an additional $2 per mailbox per month. The Archiving add-on, offering unlimited storage, is priced at $6 per mailbox per month. Previously, these add-ons cost $1 and $3 respectively.

Reseller partners have expressed considerable concern over the changes. 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 forced many businesses to re-evaluate their email hosting options. For companies that have relied on Rackspace for years, like one partner that has been using Rackspace as its email provider since 1999, the increase is particularly disruptive. The suddenness of the change has also been a point of contention, leaving businesses with limited time to adjust their budgets or migrate to alternative providers.

Rackspace has not yet issued a public statement addressing the specific concerns raised by its partners and customers. The long-term impact of these price changes on Rackspace's customer base and market position remains to be seen.