tech
January 17, 2026
Rackspace customers grapple with “devastating” email hosting price hike
Reseller says Rackspace plans to charge it 706 percent more.
TL;DR
- Rackspace has implemented a substantial price increase for its email hosting services.
- The standard plan now costs $10 per mailbox per month, a significant jump from the previous $3 per month.
- Reseller partners have expressed strong dissatisfaction, with some facing increases as high as 706%.
- Partners report receiving minimal notice (about a month and a half) for these price changes.
- Rackspace states the price hike is necessary to continue delivering expected service levels.
- Some partners, like Laughing Squid, are seeking alternative email providers to offer services at lower costs.