Reseller Cries Foul Over 706 Percent Email Hosting Price Hike at Rackspace
A reseller of Rackspace's email hosting services is calling the new pricing "devastating," citing a whopping 706 percent price increase that has left it reeling. The move, which took effect last month, marks a significant shift in the way the company approaches its email hosting business.
According to Laughing Squid founder Scott Beale, he was given just one and a half months' notice of the price hike, which would normally be considered adequate for a reseller with his company's long-standing relationship with Rackspace. However, this latest move has left him feeling blindsided, as the new pricing is expected to significantly impact his bottom line.
Beale noted that this price increase is not just a minor tweak but rather a major overhaul of Rackspace's email hosting plans. He said that Laughing Squid had negotiated good reseller pricing with Rackspace in the past due to its long-standing relationship, but all of those agreements seemed to vanish when the company notified him of the new pricing.
The news of the price hike has sent shockwaves through the online community, with some reports suggesting that Rackspace partners are facing email pricing increases ranging from 110 percent to nearly 500 percent. This drastic change in pricing has made it challenging for resellers like Beale to justify maintaining their current agreements with Rackspace.
Rackspace has cited its mission to deliver quality and reliable hosted email solutions as the reason for the price increase. The company claims that it needs to continue delivering service levels that meet customer expectations, while also ensuring that its business remains profitable.
The timing of this move couldn't be worse, as a global AI-driven RAM shortage is impacting the availability and affordability of other computing components. This comes at a time when Rackspace has already quit hosting Microsoft Exchange following a costly ransomware attack in 2022.
As a result, some resellers are taking matters into their own hands by switching to alternative email providers that offer more competitive pricing. Laughing Squid's Beale is no exception, having reached out to Rackspace about the new pricing but yet to receive a response.
The price hike at Rackspace serves as a reminder of how quickly and drastically business models can change. As email hosting becomes increasingly complex and time-consuming for businesses, it's becoming more challenging for companies like Rackspace to remain competitive in this space.
A reseller of Rackspace's email hosting services is calling the new pricing "devastating," citing a whopping 706 percent price increase that has left it reeling. The move, which took effect last month, marks a significant shift in the way the company approaches its email hosting business.
According to Laughing Squid founder Scott Beale, he was given just one and a half months' notice of the price hike, which would normally be considered adequate for a reseller with his company's long-standing relationship with Rackspace. However, this latest move has left him feeling blindsided, as the new pricing is expected to significantly impact his bottom line.
Beale noted that this price increase is not just a minor tweak but rather a major overhaul of Rackspace's email hosting plans. He said that Laughing Squid had negotiated good reseller pricing with Rackspace in the past due to its long-standing relationship, but all of those agreements seemed to vanish when the company notified him of the new pricing.
The news of the price hike has sent shockwaves through the online community, with some reports suggesting that Rackspace partners are facing email pricing increases ranging from 110 percent to nearly 500 percent. This drastic change in pricing has made it challenging for resellers like Beale to justify maintaining their current agreements with Rackspace.
Rackspace has cited its mission to deliver quality and reliable hosted email solutions as the reason for the price increase. The company claims that it needs to continue delivering service levels that meet customer expectations, while also ensuring that its business remains profitable.
The timing of this move couldn't be worse, as a global AI-driven RAM shortage is impacting the availability and affordability of other computing components. This comes at a time when Rackspace has already quit hosting Microsoft Exchange following a costly ransomware attack in 2022.
As a result, some resellers are taking matters into their own hands by switching to alternative email providers that offer more competitive pricing. Laughing Squid's Beale is no exception, having reached out to Rackspace about the new pricing but yet to receive a response.
The price hike at Rackspace serves as a reminder of how quickly and drastically business models can change. As email hosting becomes increasingly complex and time-consuming for businesses, it's becoming more challenging for companies like Rackspace to remain competitive in this space.
! I know how frustrating it is when prices change on you without warning, especially if you're already invested in a plan. I'm actually thinking of switching to some alternative email providers myself after hearing about this Rackspace price hike 
. It's not just the price that's the issue, but also the impact on their business... I mean, can't they just keep things steady? 
I'm literally speechless right now. 706 percent?! Are you bloody kidding me?! 
. maybe this will be a wake-up call for Rackspace to reevaluate their pricing strategy? 
706 percent? Are they bloody kidding me?! 
And for what reason? To "deliver quality and reliable hosted email solutions" or so Rackspace claims. Meanwhile, resellers like Laughing Squid are left reeling trying to figure out how to stay afloat. 
. A 706 percent price hike is crazy talk! 
I get that Rackspace needs to stay profitable and deliver quality service, but this move seems harsh, you know? 
It's like they're taking advantage of their long-standing relationships with resellers like Beale. The fact that he only got a month's notice doesn't help either 
. I think it's time for Rackspace to reevaluate its pricing strategy and consider the impact on its partners 
. This price hike is gonna make it super hard for Beale and others to justify keeping their agreements with Rackspace 
some of these big companies need a shakeup anyway 
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It's just another example of how unpredictable and unfair business can be.
racking up those prices is like playing a cruel joke on resellers who already got enough on their plates 
scott beale is literally crying foul, and i cant say im wrong 
rackspace needs to get its act together if they wanna keep those partners 
How are they going to make that work? And what about all the resellers who already signed up with them at a lower price? It's like they're being squeezed out. 
And can you believe that timing, when there's already a global AI-driven RAM shortage?! This is just business as usual for them, but it's really frustrating for the people who are affected by it. 
he must be losing his mind over this price hike 
. Rackspace needs to rethink their strategy ASAP 
. I know they want to deliver quality and reliable services, but charging 706 percent is just too much 
. I'm surprised no one is taking them to court about this