Rackspace customers grapple with “devastating” email hosting price hike
Ars Technica • • general
Key Points:
- Rackspace has significantly increased its email hosting prices, with the standard plan rising from $3 to $10 per mailbox per month, and add-ons like Email Plus and Archiving also seeing steep hikes, causing major concern among reseller partners.
- Laughing Squid, a Rackspace reseller since 1999, described the price increase as “devastating,” citing a 706% rise and only a month-and-a-half notice, which severely impacts their profitability given email is their largest expense.
- Other partners report price increases ranging from 110% to nearly 500%, with loss of previously negotiated volume discounts, leading some resellers to seek alternative providers like PolarisMail.
- Rackspace stated the price hike, effective March
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