Rackspace clients grapple with “devastating” electronic mail internet hosting worth hike
Rackspace’s new pricing for its electronic mail internet hosting companies is “devastating,” based on a associate that has been utilizing Rackspace as its electronic mail supplier since 1999.
In latest weeks, Rackspace up to date its electronic mail internet hosting pricing. Its commonplace plan is now $10 per mailbox monthly. Companies may pay for the Rackspace E mail Plus add-on for an additional $2/mailbox/month (for “file storage, cellular sync, Workplace-compatible apps, and messaging”), and the Archiving add-on for an additional $6/mailbox/month (for limitless storage).
As lately as November 2025, Rackspace charged $3/mailbox/month for its Normal plan, and an additional $1/mailbox/month for the E mail Plus add-on, and an extra $3/mailbox/month for the Archival add-on, based on the Web Archive’s Wayback Machine.
Rackspace’s reseller companions have been particularly vocal concerning the impacts of the brand new pricing.
In a weblog publish on Thursday, internet hosting service supplier and Rackspace reseller Laughing Squid stated Rackspace is “rising our electronic mail pricing by an astronomical 706 %, with solely a month-and-a half’s discover.”
Laughing Squid founder Scott Beale instructed Ars Technica that he acquired the “devastating” information by way of electronic mail on Wednesday. The final time Rackspace elevated Laughing Squid’s electronic mail costs was by 55 % in 2019, he stated.
“The worth improve has a serious influence on the power to make cash because of the truth that electronic mail is now our largest expense, and we had been solely given a month-and-a-half discover,” Beale instructed Ars.
On-line, there are stories of Rackspace companions being quoted electronic mail pricing will increase of 110 % to just about 500 %. The stories say that the brand new, higher-per-mailbox quotes don’t embody quantity pricing reductions. Beale famous that Laughing Squid’s quote doesn’t embody reductions that the corporate beforehand acquired.
