Rackspace Technology® (NASDAQ: RXT) today announced a ransomware incident affecting its Hosted Exchange environment, causing service disruptions to the company’s Hosted Exchange customers. In addition to Rackspace Technology’s internal security team, the company hired a leading cyber defense firm to investigate. Immediately upon detecting the incident, the company took proactive measures to isolate the Hosted Exchange environment and contain the incident.
Based on the investigation to date, Rackspace Technology believes this incident was limited to its Hosted Exchange business. Rackspace Technology’s other products and services are fully operational and the company has not seen any impact on its email product line and platform. As a precaution, Rackspace Technology has implemented additional security measures and will continue to actively monitor for suspicious activity.
Rackspace Technology is in constant communication with Hosted Exchange customers to help them migrate to a new environment as quickly as possible. Rackspace Technology has increased support staff and will be taking additional steps to guide customers through this process and limit the impact on their own operations. Although Rackspace Technology is in the early stages of evaluating this incident, the incident has caused and may continue to cause disruption to its Hosted Exchange business and may result in lost revenue for the Hosted Exchange business, which is approximately $30 million annually generates revenue in the Apps & Cross Platform segment. Additionally, Rackspace Technology may incur additional costs associated with responding to the incident.
Rackspace Technology is continuing to investigate the incident. As of December 2, 2022, the Company posted service announcements on its website detailing the above incident and will continue to post updates on its website as appropriate.
