Rackspace customers are facing a significant price increase for email hosting services, with some partners reporting increases as high as 706 percent. The change, which took effect in recent weeks, has sparked concern among businesses that rely on Rackspace for email solutions.
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 was priced at $1 per mailbox per month, and the Archival add-on cost $3 per mailbox per month.
Reseller partners have been particularly vocal 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 is increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice.
The sudden and substantial increase has left many Rackspace customers scrambling to assess their options. For businesses that have long relied on Rackspace for email services, the price change represents a significant disruption to their operational budgets.
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