Rackspace’s new pricing for its e mail internet hosting companies is “devastating,” in keeping with a associate that has been utilizing Rackspace as its e mail supplier since 1999.
In current weeks, Rackspace up to date its e mail internet hosting pricing. Its customary plan is now $10 per mailbox per 30 days. Companies may pay for the Rackspace Electronic mail Plus add-on for an additional $2/mailbox/month (for “file storage, cell sync, Workplace-compatible apps, and messaging”), and the Archiving add-on for an additional $6/mailbox/month (for limitless storage).
As not too long ago as November 2025, Rackspace charged $3/mailbox/month for its Commonplace plan, and an additional $1/mailbox/month for the Electronic mail Plus add-on, and a further $3/mailbox/month for the Archival add-on, in keeping with 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 submit on Thursday, webhosting service supplier and Rackspace reseller Laughing Squid stated Rackspace is “rising our e mail pricing by an astronomical 706 p.c, 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 e mail on Wednesday. The final time Rackspace elevated Laughing Squid’s e mail costs was by 55 p.c in 2019, he stated.
“The worth enhance has a serious affect on the flexibility to earn a living as a result of the truth that e 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 reviews of Rackspace companions being quoted e mail pricing will increase of 110 p.c to almost 500 p.c. The reviews say that the brand new, higher-per-mailbox quotes don’t embrace quantity pricing reductions. Beale famous that Laughing Squid’s quote doesn’t embrace reductions that the corporate beforehand acquired.
