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Ransomware Shuts Down Exchange Online at Rackspace

December 7, 2022

Rackspace is a huge supplier of data center services. According to a Data Breach Today post, Exchange Online is no longer one of those services. Apparently, a security incident has caused Rackspace to shut down its Exchange Online offering. Rackspace stated it “”experienced a significant failure in our Hosted Exchange environment” and “proactively shut down the environment to avoid any further issues while we continue work to restore service” and identify “the root cause of the issue.” Rackspace recommends that impacted customers move to Microsoft 365 for their Exchange needs. I doubt many customers will be willing to move back to Rackspace even after service is restored.

I am still wrestling with the question as to why users are paying Rackspace for Exchange instead of Microsoft in the first place. In our experience, Rackspace is the most expensive hosting provider we have ever considered. Given the recent security event, I’m sure many other customers are wondering the same thing.

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