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Rackspace’s new pricing for its electronic mail internet hosting companies is “devastating,” in line with a associate that has been utilizing Rackspace as its electronic mail supplier since 1999.
In latest weeks, Rackspace up to date its electronic mail internet hosting pricing. Its customary plan is now $10 per mailbox monthly. Companies may pay for the Rackspace Electronic 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 lately 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 an extra $3/mailbox/month for the Archival add-on, in line with 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 weblog put up on Thursday, website hosting service supplier and Rackspace reseller Laughing Squid stated Rackspace is “growing our electronic mail pricing by an astronomical 706 %, with solely a month-and-a half’s discover.”
Laughing Squid founder Scott Beale advised Ars Technica that he obtained the “devastating” information by way of electronic mail on Wednesday. The final time Rackspace elevated Laughing Squid’s electronic mail costs was by 55 % in 2019, he stated.
“The value improve has a significant affect on the flexibility to earn money as a result of the truth that electronic mail is now our largest expense, and we have been solely given a month-and-a-half discover,” Beale advised Ars.
On-line, there are experiences of Rackspace companions being quoted electronic mail pricing will increase of 110 % to just about 500 %. The experiences say that the brand new, higher-per-mailbox quotes don’t embody quantity pricing reductions. Beale famous that Laughing Squid’s quote doesn’t embody reductions that the corporate beforehand obtained.
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