Rackspace has rolled out a notable change to its email hosting pricing, with the standard plan now priced at $10 per mailbox per month. The company also offers an Email Plus add-on for $2 per mailbox per month (covering file storage, mobile sync, Office-compatible apps, and messaging) and an Archiving add-on for $6 per mailbox per month (for unlimited storage).
Comparisons indicate the move represents a sharp jump from earlier pricing. The Wayback Machine’s data show that as recently as November 2025, the Standard plan was $3 per mailbox per month, with an additional $1 for Email Plus and $3 for Archiving per mailbox.
Rackspace partners have voiced concerns about the price shift. Laughing Squid, a Rackspace reseller since 1999, said the company is raising email pricing by an “astronomical” 706 percent with roughly six weeks’ notice. Beale told Ars Technica the news was delivered by email and described the change as “devastating,” noting Laughing Squid had seen a much smaller increase in 2019.
Across the partner ecosystem, other quotes have surfaced ranging from about 110 percent to nearly 500 percent, with reports indicating these new per-mailbox quotes exclude volume-based discounts that some customers previously enjoyed. Laughing Squid has also pointed out that its current quote does not reflect such discounts.
Rackspace responded through a company spokesperson who framed the pricing as part of preserving service levels. The spokesperson said: “Rackspace Email is a reliable and secure business-class email solution for small businesses. To continue delivering the service levels our customers expect, effective March 2026, Rackspace Technology is increasing the price of Rackspace Email. We have a support team available to help our customers to discuss their options.”
Analysts and customers alike caution that the move could push small businesses to explore alternatives or higher-cost suites that bundle email with other tools, such as Microsoft 365 or PolarisMail. Some partners already report they’re exploring options to mitigate the impact on their own pricing and margins.
