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.

Businesses also have the option to add Rackspace Email Plus for an additional $2 per mailbox per month, which includes file storage, mobile sync, Office-compatible apps, and messaging. An Archiving add-on is available for $6 per mailbox per month, offering 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 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 Rackspace is increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice.

The price hike has forced some customers to re-evaluate their email hosting options. 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 formal statement addressing the concerns raised by its customers and partners. The long-term effects of the price increase on Rackspace's customer base and market position remain to be seen.