Rackspace’s new pricing for its e mail internet hosting providers is “devastating,” based on a associate that has been utilizing Rackspace as its e mail supplier since 1999.
In current weeks, Rackspace updated its email hosting pricing. Its normal plan is now $10 per mailbox monthly. Companies may also 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 not too long ago as November 2025, Rackspace charged $3/mailbox/month for its Commonplace plan, and an additional $1/mailbox/month for the E-mail Plus add-on, and a further $3/mailbox/month for the Archival add-on, based on the Web Archive’s Wayback Machine.
Rackspace’s reseller companions have been particularly vocal in regards to the impacts of the brand new pricing.
In a blog post on Thursday, webhosting service supplier and Rackspace reseller Laughing Squid stated Rackspace is “growing our e mail pricing by an astronomical 706 p.c, with solely a month-and-a half’s discover.”
Laughing Squid founder Scott Beale advised Ars Technica that he obtained the “devastating” information through 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 value improve has a serious impression on the power to earn a living because of the truth that e mail is now our largest expense, and we had been solely given a month-and-a-half discover,” Beale advised Ars.
On-line, there are experiences of Rackspace companions being quoted e mail pricing will increase of 110 percent to nearly 500 percent. The experiences 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 obtained.
