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 services, particularly reseller partners.

The new pricing structure sets the standard plan at $10 per mailbox per month. Additional features are available through add-ons: Rackspace Email Plus, which includes file storage, mobile sync, Office-compatible apps, and messaging, costs an extra $2 per mailbox per month. The Archiving add-on, offering unlimited storage, is priced at an additional $6 per mailbox per month.

According to data from the Internet Archive's Wayback Machine, Rackspace's pricing as recently as November 2025 was $3 per mailbox per month for the Standard plan, with the Email Plus and Archival add-ons costing $1 and $3 per mailbox per month, respectively.

Laughing Squid, a web hosting service provider and Rackspace reseller, voiced strong criticism of the price hike in a blog post on Thursday. The company stated that Rackspace is "increasing our email pricing by an astronomical 706 percent, with only a month-and-a halfs notice."

The price increase impacts businesses of all sizes that utilize Rackspace's email hosting services. The sudden and substantial nature of the change has left many customers scrambling to assess their options and adjust their budgets. Resellers, in particular, are concerned about the impact on their own pricing and customer relationships.

Rackspace has not yet issued a comprehensive statement addressing the concerns raised by its customers and partners. The company's future plans for email hosting pricing and its strategy for retaining customers amidst the price increase remain unclear. The situation is ongoing, and further developments are expected as customers evaluate their alternatives and Rackspace responds to the feedback.