Microsoft 365 vs 
Rackspace Email (2026 Comparison)
For the same money as a repriced Rackspace mailbox, Microsoft 365 hands you Outlook, Teams, and the whole Office suite.
Microsoft 365 Business Basic is $7/user for email plus Teams, OneDrive, and web Office, while Rackspace Email now costs roughly $10 per mailbox for email alone. Choose Microsoft 365 for far more capability at a lower price; only keep Rackspace if you specifically want its managed-support model and nothing else.
- Best pick
- Microsoft 365
- Integration
- Migration / IMAP transfer
- Setup
- 1-2 weeks
Ready to try them?
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Team Fit — who should build on what
Before pricing or features, get the fit right. Here's how Microsoft 365 and Rackspace Email map to real team profiles.
| Dimension | Microsoft 365 | Rackspace Email |
|---|---|---|
| Scope of suite | Email + Teams + Office + storageEdge | Hosted mailbox only |
| Price vs value | $7/user for the whole suiteEdge | ~$10 per mailbox for email |
| Collaboration | Teams, shared docs, OneDriveEdge | None beyond email |
| Managed support | Standard Microsoft support | 24/7 fanatical support focusEdge |
| Reputation / satisfaction | 4.6 across 13k+ reviewsEdge | 1.2 rating after 2026 hike |
| Client flexibility | Outlook-centric | Any IMAP clientEven |
Who is Microsoft 365 best for?
Business Email & Productivity Suites
Small to enterprise teams that rely on Outlook, Teams, and installed Office apps.
- Organizations standardized on Office
- Teams needing desktop Word/Excel/PowerPoint
- Companies with compliance requirements
Who is Rackspace Email best for?
Business Email & Productivity Suites
Small to mid businesses that value hands-on support over lowest price.
- Businesses wanting managed email support
- Legacy Rackspace customers
- Teams needing hosted Exchange options
Pricing & Features — what you actually pay for
Side-by-side plans with the fine print most comparison pages skip, plus a filterable feature matrix.
Microsoft 365
Outlook, Teams, and the full Office app suite for business.
Business Basic
$7/per user / mo
- Outlook + web/mobile Office
- Teams and 1 TB OneDrive
- 50 GB mailbox
Business Standard
$14/per user / mo
- Desktop Office apps
- Teams + Copilot Chat
- Webinars and bookings
Business Premium
$22/per user / mo
- Advanced threat protection
- Device + identity management
- Data-loss prevention
Hidden costs to watch
- Prices are annual-commitment; month-to-month billing runs ~20% higher
- Prices rose on July 1, 2026 (Basic $6 to $7, Standard $12.50 to $14)
- Copilot full add-on is a separate ~$30/user/mo charge
Rackspace Email
Hosted business email with fanatical support, now steeply repriced.
Rackspace Email
$10/per mailbox / mo
- 25 GB mailbox
- 24/7 support
- Spam and virus filtering
Hosted Exchange
Custom
- Full Exchange features
- Shared calendars and contacts
- Pricing varies by provider
Hidden costs to watch
- Direct mailbox price jumped from ~$2.99 to ~$10/mailbox in 2026
- Email Plus (+$2) and Archiving (+$6) are extra per-mailbox add-ons
- Price a business pays varies widely by reseller channel
Feature specs
7 of 9 features differ between these tools.
| Feature | Microsoft 365 | Rackspace Email |
|---|---|---|
| Custom-domain business email | NativeNative | NativeNative |
| Desktop Office appsBusiness Standard+ installs Office | NativeNative | Not SupportedNot Supported |
| Team chat + video (Teams) | NativeNative | Not SupportedNot Supported |
| Real-time document collaboration | NativeNative | Not SupportedNot Supported |
| Built-in AI assistantCopilot Chat; full Copilot ~$30 add-on | NativeNative | Not SupportedNot Supported |
| Cloud file storage1 TB OneDrive vs 25 GB mailbox only | NativeNative | Not SupportedNot Supported |
| Advanced security / DLPM365 Premium; Rackspace add-ons limited | NativeNative | Paid Add-onPaid Add-on |
| Email archiving / eDiscoveryRackspace Archiving is +$6/mailbox | NativeNative | Paid Add-onPaid Add-on |
| 24/7 support | NativeNative | NativeNative |
Automation Blueprints — make them work together
The real payoff is the stack. These are concrete Microsoft 365 ↔ Rackspace Email workflows worth building.
Cut over Rackspace mailboxes to Exchange Online
Migration batch started
Target user licensed in Microsoft 365
Import mail and contacts via IMAP
Escapes the 2026 Rackspace price hike while upgrading to a full productivity suite.
Forward-and-sync during dual-run
New email received
Cutover window still open
Copy message into mapped folder
Ensures continuity so no message is missed while DNS records switch over.
Alert admins to lingering Rackspace traffic
New email after cutover date
Received 7+ days post-migration
Post message to IT channel
Surfaces senders still using old addresses so you can finish decommissioning Rackspace.
Frequently asked questions
Common questions about choosing between and combining Microsoft 365 and Rackspace Email.
Is Microsoft 365 cheaper than Rackspace Email?
Does Rackspace Email offer anything Microsoft 365 lacks?
How hard is it to migrate from Rackspace to Microsoft 365?
Why are Rackspace customers leaving in 2026?
Do I need Business Standard or is Basic enough?
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