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is now Laughing Squid’s biggest operating cost, adding that previously negotiated volume discounts appear to have been withdrawn.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