I saw an article about it:

https://arstechnica.com/information-technology/2026/01/rackspace-raises-email-hosting-prices-by-as-much-as-706-percent/

 

Unfortunately this is becoming common in the software world, especially if 
companies are taken over by private equity.  Eliminate perpetual licenses and 
require multiyear subscriptions, and announce huge price hikes.  What was the 
story about killing the goose to get the golden eggs?

 

From: AF <[email protected]> On Behalf Of Steve Jones
Sent: Friday, January 16, 2026 7:05 PM
To: AnimalFarm Microwave Users Group <[email protected]>
Subject: Re: [AFMUG] Hosted emails

 

Yeah Gemini pro will connect to Gmail now, I'm planning on hitting my original 
Gmail hard

 

We haven't decided what to do yet. But we are looking it as a great opportunity 
to touch 250 customers, so we are building this to incorporate a notice of home 
services we are looking to offer outside isp. 

 

Rackspace sent notice Monday of the change hitting March 1. Kinda irritated. 
It's not a lot of money but its still money. 

 

On Fri, Jan 16, 2026, 6:43 PM Bill Prince <[email protected] 
<mailto:[email protected]> > wrote:

I got my first private email address back in the early 90s through yahoo, which 
has gone through some changes over the years. It was originally unlimited 
storage for free, then became 1TB storage for $5/month. They eventually changed 
that to 200GB storage for the same $5. I've had that address now for over 30 
years, but I still have quite a bit of room in there.

I got my gmail address not too long after that, but with only 15GB storage, 
it's not as great a deal, so I forward all my gmail to yahoo mail, and keep on 
trucking.

I don't throw anything away, but after 10 years or so, I archive the email to 
cloud storage which is a lot cheaper.

 

bp
<part15sbs{at}gmail{dot}com>

On 1/16/2026 3:24 PM, Ken Hohhof wrote:

It took me 3 reads to realize 296 mailboxes, not 296 hardware boxes in a 
datacenter rack.  Doh!

 

Not really answering your question, but I feel the responsible thing is to give 
customers adequate notice to migrate their email (like 3 months or more) and 
pay Rackspace the $4 until then.  Now you only need to find a solution for your 
own internal email, unless that’s already on a different system.

 

Best thing for these senior, longtime customers is some tough love, they need 
to get a Gmail account.  Not my favorite, but that way their grandkids can do 
tech support for them.  They should have migrated their email 20 years ago, but 
they’re not getting any younger, migrating won’t get any easier, and not giving 
them a shove is like continuing to sell drugs to an addict.  You could provide 
some instructions to migrate from your system to Gmail and maybe other popular 
mail services.

 

Another option although it wouldn’t appeal to me is to instead announce that 
after such-and-such date, email will no longer be free, and price it at your 
cost plus a little.  This would cause most of the customers to switch, but 
inevitably some won’t, and now you have a couple dozen customers paying maybe 
$5/month for the legacy system just to keep their email address or because of 
inertia.  They would be better served with an ultimatum.  Although I remember 
lots of people paying $20/month for an AOL account even though they no longer 
used dialup, because they didn’t realize they could convert to a free account 
and keep their aol.com <http://aol.com>  email address.

 

Customers with the same email address for 20 years probably get tons of spam, 
so you have a tough spam filtering task to balance false positives and 
negatives, once you are getting 500 spams per day, the solution is to get a new 
email address.

 

There’s also the storage quota issue.  People get their email on their phone 
using IMAP and leave every email they ever got on the server, including their 
Deleted folder.  I used to think Gmail was unlimited storage, at least it 
seemed that way.  But I see that many people are having to pay for extra Google 
storage, especially since the quota is shared with Google Drive.

 

From: AF  <mailto:[email protected]> <[email protected]> On Behalf 
Of Steve Jones
Sent: Friday, January 16, 2026 3:36 PM
To: AnimalFarm Microwave Users Group  <mailto:[email protected]> <[email protected]>
Subject: [AFMUG] Hosted emails

 

We still provide legacy email. Debating on whether to continue. Rackspace just 
bumped our cost from .47 a box to 4 bucks a box and we still have about 296 
boxes. 85 are paid (weird, right) and about 211 are free. Its was pretty hands 
off, with rackspace. Kind of irritating, we just went through a family 
acquisition and ended up migrating to a new business domain to get into a 
collaborative email environment without needing 300 boxes. and now we may dump 
the email anyway.

 

There is zero interest in self hosting, or managing an email server whatsoever. 
Email stickiness isnt what it used to be. but I do feel for some of these 
folks, elderly, been with us for 20 years.

 

The following is our current list of contenders, any im missing, any who are 
plague, and who are great? These are just set and forget imap boxes

 

PolarisMail

*       Pros: Best fit. Base plan includes 25GB (supports our heavy users). 
Free managed migration services (saves us ~40 hours). Dedicated reseller 
program.
*       Cons: Slightly higher cost than OpenSRS (~$1.50/mo), but significantly 
lower than Rackspace.
*       Status: Inquiry Sent.

Tucows / OpenSRS

*       Pros: Lowest cost. Pay-per-tier model ($0.50 for 5GB users). We only 
pay extra for the few heavy users.
*       Cons: High admin overhead. We must manually monitor and upgrade user 
quotas to prevent full mailboxes. DIY Migration.
*       Status: Inquiry Sent.

DreamHost

*       Pros: Simple flat pricing (~$1.67/mo) with 25GB for everyone. No quota 
management needed.
*       Cons: Retail-focused support (Chat only), DIY migration, less 
"ISP-aware" than Polaris/Tucows.
*       Status: Inquiry Sent.

  _____  

⚠️ THE "PROCEED WITH CAUTION" LIST

Sherweb (Existing Partner)

*       Pros: We already have a relationship; reliable infrastructure.
*       Cons: Pricing likely too high ($2.00–$3.00/user) to solve our core cost 
issue.
*       Status: Reaching out to rep.

Namecheap

*       Pros: Cheap first-year pricing.
*       Cons: "Trap" pricing. Basic plan has low storage (5GB) and NO mobile 
sync (ActiveSync). Upgrading to Pro for features/storage makes it expensive 
($42/yr).
*       Status: Inquiry Sent (Low priority).

Zoho Mail

*       Pros: Great interface, reliable.
*       Cons: Storage Limits. Strict 5GB/10GB caps on cheap plans. Migrating 
our 25GB users will fail unless we buy expensive enterprise licenses for them.
*       Status: Inquiry Sent (Likely incompatible).

Migadu

*       Pros: Flat fee for unlimited users.
*       Cons: Critical Risk. Uses a "Shared Sending Limit." If one customer 
spams, all our customers get blocked. No ActiveSync.
*       Status: Inquiry Sent (Not recommended).

 

 

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