"The Email Plus extension costs an extra $2 per mailbox and offers additional storage, mobile synchronization, and Office-compatible applications, among other things. Archiving with unlimited storage costs an additional $6 per mailbox per month. This means that costs are significantly higher than at the end of 2025, when the standard subscription cost $3 per mailbox and the extensions added a maximum of $4 per mailbox."
"Web hosting company Laughing Squid, a long-time partner of Rackspace, claims that the new rates amount to an increase of more than 700%, while partners were only informed a month and a half in advance. The new situation makes email the largest expense within his organization, which makes it considerably more difficult to offer the service profitably."
"Other partners are also reporting substantial increases, ranging from well over 100% to almost 500%. In addition, previous volume discounts have disappeared, which particularly affects larger resellers who have been able to count on favorable terms for years. According to those involved, long-term agreements and economies of scale no longer seem to play a role in the introduction of the new prices."
Rackspace raised email hosting prices so the standard subscription is now $10 per mailbox per month. Optional Email Plus adds $2 per mailbox for extra storage, mobile synchronization, and Office-compatible applications; archiving with unlimited storage adds $6 per mailbox per month. Prices are substantially higher than late 2025 levels when standard subscriptions were $3 and extensions added up to $4. Resellers report increases from over 100% up to more than 700%, loss of volume discounts, short advance notice, and severe pressure on profitability and business models. Rackspace confirms the price increase.
Read at Techzine Global
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