tech
Rackspace customers grapple with “devastating” email hosting price hike
Reseller says Rackspace plans to charge it 706 percent more.
TL;DR
- Rackspace has increased its standard email hosting price from $3/mailbox/month to $10/mailbox/month.
- Add-ons for Email Plus and Archiving have also seen significant price increases.
- Reseller partners, such as Laughing Squid, are reporting price hikes of up to 706% with only a month and a half's notice.
- The new pricing reportedly does not include volume discounts previously offered to partners.
- Rackspace stated the price increase is necessary to continue delivering expected service levels and offered support to customers.
- Some partners are seeking alternative email providers and increasing prices for their customers.
- The price hike follows Rackspace's exit from hosting Microsoft Exchange after a ransomware attack and coincides with an AI-driven RAM shortage impacting computing components.