I recently received a shocking email from Rackspace. It was cold and calculated. Heartless even.
Here it is in its entirety:
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Greetings, To support the ongoing costs of operating and maintaining the service, we are adjusting pricing for your Rackspace Email services: * Your new monthly per-mailbox price will be $10.00. * This new pricing will go into effect for new invoices generated on or after March 1st, 2026. Thank you for your continued trust in Rackspace. We look forward to serving your evolving email needs in the years to come. Best Regards, The Rackspace Email Team |
At first glance, this might not seem that shocking to you. But here’s the thing… My previous per-mailbox price was $2.50.
That’s a 300% increase.
Shared to me in an extremely brief email. No explanation, no apologies. Just a casual 300% price increase as if it were no big deal.
I’ve heard on message boards that some customers have had increases of up to 706%. Negotiated volume discounts disappeared in an instant.
Presumably, they are slowly phasing out their hosted email mailboxes in favor of Office 365. Just like with everything else, the play is to slowly make it so that only two companies control entire markets, allowing them to charge whatever they want and extract as much wealth from the masses as they can to buy more yachts for their trillionaire overlords.
It’s just greed, plain and simple.
It’s probably not even totally Rackspace’s fault. They are most likely feeling the same squeeze from above, and it’s only a matter of time before Amazon buys them.
Unfortunately, there are very few good options left for email hosting. At this point you pretty much have to go with either Microsoft or Google. We are even considering offering our customers managed Google Workspace email hosting. That’s something I never thought I’d say.
What do you think? Would you pay someone to manage that for you?
Let me know in the comments or head over to our Contact page and send us a message.
