Rackspace’s recent pricing for its email hosting services is “devastating,” in accordance with a partner that has been using Rackspace as its email provider since 1999.
In recent weeks, Rackspace updated its email hosting pricing. Its standard plan is now $10 per mailbox per thirty days. Businesses may pay for the Rackspace Email Plus add-on for an additional $2/mailbox/month (for “file storage, mobile sync, Office-compatible apps, and messaging”), and the Archiving add-on for an additional $6/mailbox/month (for unlimited storage).
As recently as November 2025, Rackspace charged $3/mailbox/month for its Standard plan, and an additional $1/mailbox/month for the Email Plus add-on, and a further $3/mailbox/month for the Archival add-on, in accordance with the Web Archive’s Wayback Machine.
Rackspace’s reseller partners have been especially vocal concerning the impacts of the brand new pricing.
In a blog post on Thursday, hosting service provider and Rackspace reseller Laughing Squid said Rackspace is “increasing our email pricing by an astronomical 706 percent, with only a month-and-a half’s notice.”
Laughing Squid founder Scott Beale told Ars Technica that he received the “devastating” news via email on Wednesday. The last time Rackspace increased Laughing Squid’s email prices was by 55 percent in 2019, he said.
“The worth increase has a significant impact on the power to earn money on account of the undeniable fact that email is now our largest expense, and we were only given a month-and-a-half notice,” Beale told Ars.
Online, there are reports of Rackspace partners being quoted email pricing increases of 110 percent to almost 500 percent. The reports say that the brand new, higher-per-mailbox quotes don’t include volume pricing discounts. Beale noted that Laughing Squid’s quote doesn’t include discounts that the corporate previously received.