Rackspace customers grapple with “devastating” email hosting price hike

Rackspace's recent email hosting pricing changes have been described as "devastating" by long-time customers and reseller partners. The new pricing includes a standard plan at $10 per mailbox per month, with add-ons like Rackspace Email Plus for $2/mailbox/month and Archiving for $6/mailbox/month. This marks a significant increase from previous pricing, with some partners facing hikes of up to 706 percent. The sudden and substantial price increase has left partners like Laughing Squid struggling to adjust, as email costs have become a major expense. Reports indicate that many partners are facing steep price hikes without the benefit of volume discounts they previously received.