- Rackspace standard plans are now $10/month, down from $3
- Laughing Squid faced 706% price hike and six-week notice
- Additional charges will go towards maintaining quality of service.
Rackspace’s long-term customers and partners have warned that the changes could be “devastating” following a sharp rise in prices for the company’s email hosting.
The standard plan now costs $10 per mailbox per month, up from $3. Charges for Email Plus (+$2, up from +$1) and Archiving (+$6, up from +$3) add-ons have also put additional pressure on customers.
Several partners have reported increases ranging from 110% to nearly 500%, and volume discounts don’t appear to be there to soften the blow.
Rackspace Price Increase
One reseller, Laughing Squid, says its price is increasing by 706% with just six weeks’ notice. Founder Scott Beale explained (via Ars Technique) that email is now Laughing Squid’s biggest operating cost, adding that previously negotiated volume discounts appear to have been withdrawn.
Rackspace defended the increases, noting that revenue is necessary to maintain quality of service and promising a commitment to secure, enterprise-class email.
“After almost 27 years using Rackspace as our email provider, they suddenly announced that they are increasing the price of our email by an astronomical 706%,” noted Laughing Squid in a blog post. “There have been reasonable price increases over the years, as expected, but nothing like this.”
The company is also working with PolarisMail to reduce costs that would otherwise be passed on to customers.
“To continue providing the service levels our customers expect, starting in March 2026, Rackspace Technology will increase the pricing of Rackspace Email. We have a support team available to help our customers discuss their options,” a Rackspace spokesperson shared.
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