A ransomware incident at Rackspace Technology discovered on Dec. 2, has caused service disruptions to customers of its Hosted Exchange business and could result in a loss of revenue, the company said Tuesday.
Rackspace took immediate steps to contain the ransomware to its Hosted Exchange environment and hired a leading cyber defense firm to investigate the incident, the company said.
The San Antonio-based firm designs, builds and operates cloud environments for companies across multiple platforms. The Hosted Exchange environment generates about $30 million in annual revenue in the company’s Apps & Cross Platform segment.
Rackspace warned it may have incremental costs related to its response to the incident.
On its status update page, Rackspace said it was making resources available to customers so they could migrate their users and domains over to Microsoft 365.
A company spokesperson said Monday via email that Rackspace had restored email service to thousands of customers on Microsoft 365, adding that customers could now implement temporary forwarding.
Rackspace is contacting Hosted Exchange customers by phone and plans to also contact them via alternative email addresses.
The company believes the incident was isolated to its Hosted Exchange business, according to the announcement. Other products and services are fully operational and there has been no impact to its email product line and platform.
