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 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 (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 were priced at $1 and $3 per mailbox per month.
Reseller partners have expressed strong concerns about the impact of the price hike. 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 of the "astronomical" 706 percent increase.
The price changes affect businesses that rely on Rackspace for email hosting, potentially forcing them to absorb higher costs or migrate to alternative providers. The reasons behind Rackspace's decision to implement such a steep increase remain unclear. The company has not yet issued a public statement explaining the rationale behind the new pricing structure.
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