Rackspace’s new pricing for its electronic mail internet hosting companies is “devastating,” based on a accomplice that has been utilizing Rackspace as its electronic mail supplier since 1999.
In latest weeks, Rackspace updated its email hosting pricing. Its normal plan is now $10 per mailbox per thirty days. Companies may also pay for the Rackspace E 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 Customary 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 concerning the impacts of the brand new pricing.
In a blog post on Thursday, internet hosting service supplier and Rackspace reseller Laughing Squid stated Rackspace is “growing our electronic mail pricing by an astronomical 706 p.c, with solely a month-and-a half’s discover.”
Laughing Squid founder Scott Beale informed Ars Technica that he obtained the “devastating” information through electronic mail on Wednesday. The final time Rackspace elevated Laughing Squid’s electronic mail costs was by 55 p.c in 2019, he stated.
“The worth improve has a significant 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 informed Ars.
On-line, there are studies of Rackspace companions being quoted electronic mail pricing will increase of 110 percent to nearly 500 percent. The studies 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.
