Rackspace customers are facing a significant increase in email hosting costs, with some partners reporting price hikes 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 previously charged $3 per mailbox per month for its Standard plan as recently as November 2023. The Email Plus add-on cost an additional $1 per mailbox per month, and the Archival add-on was $3 per mailbox per month.

Reseller partners have been particularly vocal 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 received only a month-and-a-half's notice before the "astronomical" price increase.

The reasons behind the price hike have not been explicitly stated by Rackspace. The company has not yet issued a public statement addressing the concerns raised by its customers and partners. The sudden and substantial increase raises questions about Rackspace's long-term strategy and its commitment to its existing customer base. The situation is ongoing, and further developments are expected as Rackspace responds to the concerns of its users.